Insider Economy Bill provides provident funds for all

Bill provides provident funds for all

An EU directive provides that Provident Fund contribution will be compulsory for all employees of companies offering such a benefit and the government has already sent a harmonisation bill to parliament.

However, the island’s employers are raising opposition against this provision, Phileleftheros reports.

On the other hand, unions are welcoming the apparent strengthening of the supervision of funds.

Apart from this controversial reform, insiders also said it is considered unacceptable that due to lack of time the proposed bill will not undergo legal scrutiny.

The purpose of the European directive and therefore of the proposed bill is to further ensure the sound governance of Professional Pension Institutions through the implementation of new key functions such as risk management, internal audit and actuarial operation and the provision of clear and useful information to potential candidates, members and beneficiaries of funds.

Trade unions consider this legislation very important as it ensures that retirement benefits as well as supervision of funds are both strengthened by it.

Right wing SEK union leader Andreas Matsas told Phileleftheros that the new legislation reinforces the second pillar of retirement benefits and that compulsory employee participation is in the right direction in cases where the company offers its own pension plan.

This, he added, puts the brakes on the tendency to have two-speed employees – “old” and young ones.

However, employers believe the opposite. The proposal cannot be accepted, Cyprus Employers Federation (OEB) director of labour relations and social policy Lena Panagiotou told Phileleftheros.

Because, she explained, in cases where the employment is seasonal – for example in the hotel industry – the employee who will be required to participate may not have any substantial benefit from the fund.

A second point that provokes the employers’ reaction is the provision that prohibits the abolition of a fund. Although specific circumstances have been agreed to allow this, OEB recommends that a transition period of at least three years should be set.

In addition, the bill prohibits the possibility of transferring Provident Funds and /or their members to private insurance plans.

By Demetra Landou


Read more:


Top Stories

12-new covid cases at the same levels, nothing from abroad or schools

  12 new cases of Covid-19 were detected in Cyprus over the past 24 hours out of a total of 3 thousand 338 diagnostic tests. The...

Cyprus extends support to Armenia as FM calls counterpart

  Cyprus has expressed its deep concern over the escalating situation in Nagorno Karabakh over the past 48 hours and condemned 'the Azeri violation of...

International concern over Karabakh, as energy corridor is threatened (latest)

  Clashes erupted between Armenia and Azerbaijan over the volatile Nagorno-Karabakh region, reigniting concern about instability in the South Caucasus, a corridor for pipelines transporting...

38 tomorrow, close to 40 Tuesday and a drop on Wednesday

  The warm air current affecting the island will take temperatures a touch under August levels over the next 48 hours, with 38 tomorrow and...

War fears in Karabakh as Armenia and Azerbaijan clash with civilian casualties

  Armenia declared martial law and mobilised its male population after clashes with Azerbaijan over the breakaway Nagorno-Karabakh region in which sources on both sides...



Sheftalies, a very tasty dish from the charcoal grill, are minced meat shaped into small sausages and wrapped in “panna” (suet). Panna is a...

Spicy grilled soutzoukakia

Place all ingredients for soutzoukakia in a bowl and mix well, preferably using a food processor, until well combined. Using the mixture, form cigar-shaped...


Pork souvlaki: Put the meat and all the other ingredients in a bowl (not metal) and mix well. Cover the bowl and keep in...

Pastelli (Carob Toffee)

The nutritional sweet of Pastelli is made with the syrup of carob pods, produced by boiling their pulp until it forms a thick, sticky...