The government in Cyprus has made an important decision. It will protect the money of older people who need help. The cabinet agreed on Tuesday. This means pensioners with low pay will still get all their extra money. This plan stops any cuts to their important payments. It is because of planned pension increases.
This new rule will last until June 30, 2026. Many people worried that pension increases would affect their state aid. Starting January 1, 2026, pensions will go up by about 3.38 percent. The government will not count this increase for extra allowances. Therefore, pensioners can enjoy the full benefits of the pension change.
The Ministry of Social Welfare will make this change. They will not use the pension increase when checking for the low-pension allowance. This smart move helps families keep their current state money. Pensioners will get their higher main pension and their extra allowance. This ensures they have stable money.
This plan is expected to help about 24,000 households. The cost for this extra help is about €13.5 million. The government shows it cares about older people. It is especially important for those with money problems. This is a good way to think about pensions. It helps the most vulnerable people.
This action is fair. Without it, a small pension rise could stop some people from getting their extra money. This would cancel out the good part of the pension increase. The government has stopped this. It keeps thousands of older people financially stable. This plan will help low-income pensioners feel more secure. They can look to the future with more confidence.