Labour Minister: The aim is to have the most modern pension system in the EU

Minister of Labour and Social Insurance, Yiannis Panayiotou, has told CNA that the aim is for Cyprus to have in the next few years the most modern pension system in the EU, both in relation to its content and in relation to the software that will support it.

In an interview with the Cyprus News Agency, the Minister also said that the bill on remote work in the private sector has been updated and will be sent to the Labour Committee of the Parliament to begin its debate. In addition, he said that the Ministry of Finance will soon complete the drafting of the framework for flexible forms of work in the public and broader public sector.

He also said that the social partners have already given the names of their representatives who will participate in the Commission for the re-evaluation of the minimum wage and that the Commission will begin work in the near future.

On the issue of long delays in processing applications, Panayiotou said that preparations for a number of legislative or procedural changes have been completed, while they are completing the process to staff the public service in order to work overtime and address the problem so that payments are made within one month of submitting an application.

Regarding the interconnection of the labour market with education, he announced visits to several workplaces, schools, universities, and military camps, among others, to promote the modern professional culture necessary for the green and digital transition. He also said that participants in the learning activities to promote modern professional development will reach 100,000.

Regarding social insurance, the Minister of Labour said that 2024 marks 60 years since the system has been introduced. He stressed that in order to have a sustainable Social Insurance Fund that can support citizens in a satisfactory manner, we have to modernise it.

Cyprus, he pointed out, has the most outdated software system for the operation of the Fund in the EU.

The goal, he said, is through the modernisation of the system, for Cyprus to have the most modern system in the EU within the next few years.

He said that the modernisation of the system "will be very beneficial for the current workers and pensioners and for the future pensioners of our country."

Asked when the actuarial study will be ready, he said that the plan has a five-year horizon but noted that "we will try to speed up the process so that we have tangible results as soon as possible."

"This is a difficult and complex project for which we are receiving technical support from the ILO as well as from the government of Austria," he said, expressing optimism that within this framework and with funding from the Recovery and Resilience Fund "we will be able to take a very important step forward."

Asked about the regulation for working from home he noted that this discussion has been ongoing for some time and that they have submitted the relevant bill to the Labour Committee of the Parliament and the debate began.

The Minister expressed optimism that the discussion will soon be concluded in order to give the possibility, as he said, "to many organisations and businesses to take advantage of working from home."

In relation to the public sector, he said that soon the Ministry of Finance will conclude the framework for flexible forms of work in the public administration which also includes teleworking.

Panayiotou said that the possibility will be given for using modern forms of technology that allow remote work by the public service and the wider public sector.

Asked about the 4-day work week, he said that several organisations have taken advantage of this possibility, adding that "from the point of view of public administration, there is such an orientation after the preparation of studies by consultants who have formulated relevant recommendations."

He stated, however, that in order for the 4-day work week to be implemented "there needs to be a preparation so that the implementation meets two parameters, on the one hand, the better reconciliation of professional and personal life and on the other hand the enhancement of productivity which is the main issue."

Asked about the minimum wage in view of the fact that it will be adjusted in January 2024, he noted that salaries must be satisfactory and decent, adding that the regulation of the minimum wage is necessary and its establishment is a very important step.

For this reason, he added, in view of the renewal of the decree on the minimum wage, "we want this regulation to be better both in relation to the way the minimum wage is calculated, but also, according to the possibilities of the economy and the needs of society". We will discuss, he said, its amount so that by the end of the year when the new decree will be issued - that will be effective from January 1, 2024- it can be configured in an appropriate way that corresponds to these parameters.

He noted that the next minimum wage adjustment will take place after two years.

Asked how the government will proceed with the goal of connecting the labour market with the Education sector, the Minister said that in the modern world, the most important element for a country's economy is its people. "We invest in them so that in future our country will be much more competitive than it is today," he underlined.

Panayiotou stressed that the double transition, green and digital, is the biggest challenge we have to face adding that the world will very soon be very different compared to the one we know today.

For this reason, he pointed out, future workers must be fully prepared to be able to support this process.

He referred to the approval by the Council of Ministers of an action plan on the occasion of the European Year of Skills which was presented at the Presidential Palace in the presence of the President of the Republic, stressing that this "proves the importance that the Government attaches to the development of human resources of our country."

Asked whether the cooperation of the state and universities is needed to push students to choose the fields of the future, the Minister noted that we should focus on shaping professionals who can be useful and in demand by whatever professions will be needed over the next decade.

"These professionals who are today's pupils and students must have green and digital skills, they must have an understanding of the quality dimension of the services and goods they will produce and offer, they must have a deep understanding of the dimension of safety and health in work, they must be able to work in a team, creatively, and develop innovative solutions for various issues so that they can be competitive internationally" he pointed out.

In his interview with CNA, the Minister also referred to a plan that is in the completion phase in relation to easing the working hours of parents with many children.

(Source: CNA)