In the past, the Parliament decided to promote changes to multiple pensions, but in the dialogue – which lasted almost 18 months until the passing of the laws – another privilege concerning their pension benefits was never put on the table and that could even be discussed.

In particular, according to the legislation, MPs do not pay contributions to the Social Insurance Fund, but they are beneficiaries of a parliamentary – and not only – pension. This is because they pay an amount of €529 per month (for 2025), which is calculated every year based on the increases in their salaries. For example, in 2023 this amount was €487, while in 2024 it was €519.

This amount is described in the statements of the General Accounting Office, for the payroll of MPs, as a cut for the "Pension / Tip Plan", but it is essentially not a pension plan, since this money simply ends up in the Fixed Fund of the Republic.

Both MPs and workers

The fact that MPs are exempt from paying contributions to the Social Insurance Fund, a right that only the two highest offices of the Republic of Cyprus have, is characterized by some as a super-privilege, since, combined with the fact that they have the right to continue working at the same time as their term of office, it allows them to have an additional salary in addition to their salaries as MPs. but also additional insurance units, thus increasing the amount of their pension for the period they are in Parliament.

In fact, the last point has been commented on in various ways by some MPs who, unlike their colleagues, have decided not to work during their term of office in order to remain focused and focused on their demanding duties on the benches of the Parliament.

On the other hand, it should be noted that for other state officials (Attorney General, Assistant Attorney General, Auditor General, Ministers, Deputy Ministers, Commissioners, etc.) contributions to the Social Insurance Fund are rightly deducted from their payroll, while at the same time they pay an additional 635 euros per month to the Permanent Fund of the Republic for this plan.

Why they don't pay Social Insurance

Investigating the issue, "F" identified the reason, that according to legislation, MPs are exempt from paying contributions to the Social Insurance Fund.

Therefore, according to what is described in the law, MPs do not pay contributions to the Social Insurance Fund because the office they hold does not fall under the insurable occupations, as defined in the First Table Part I of the Social Insurance Law. In particular, the remuneration and/or compensation received by these Officials does not fall under the concept of the term "remuneration" as defined in the Social Insurance Law, because it does not constitute consideration for work.

There is no pension plan

Legal circles told "F" that the MPs, if they wished, could have promoted changes in parallel with the proposals for multiple pensions, so that they would not be exempt and pay social security contributions normally, as is the case with all other workers in Cyprus.

At the same time, it was noted that the most rational thing for all categories, both MPs and officials, would be to create a single pension plan, which would apply to everyone and ensure that pension and tip amounts would be more in line with the contributions they pay during their term of office.

They leave the Parliament with a "strong" one-off

According to the latest data obtained by "F", the annual gross pension of MPs for a five-year period amounts to €19,107 and the lump sum they receive upon their departure is €89,166.

For those MPs who complete two terms, the amount of their gross pension skyrockets to €52,545 and the tip reaches €245,210.

Now, as far as their salary is concerned, according to the same data, their gross salary for 2025 amounts to €7,785. More specifically, the basic salary is €4,569, the attendance allowance at €2,191 and the secretarial services allowance at €1,025.

Nothing ended with multiple pensions

The previous discussion on multiple pensions certainly corrected some distortions, but it did not solve the issue.

On the one hand, the new regulations do not apply to existing officials and MPs, and on the other hand, with the latest changes, even future officials have been exempted. At the same time, even if the laws were signed by the President of the Republic, it remains open to the possibility that the new decisions will be deemed unconstitutional in case someone affected appeals to the court.