Cyprus Pension Calculation

Cyprus Pension Calculation

How is the statutory pension calculated in Cyprus?


The statutory pension to be received on retirement is calculated based on the salary earned and the total number of years during which contributions were paid to the Social Insurance Fund.

In particular, the statutory pension that an employee will receive after the age of 65 depends on the number of pension units that have been credited to his social insurance account in the Social Insurance Fund during his total working years. Employees receive by mail from the Department of Social Insurance the number of annual units that have been credited to him/her account. Alternatively, employees may request from any Citizen Service Center or the Social Insurance Department an analysis of his/her insurance units.

How are the pension units calculated?

One unit corresponds to the amount of basic insurable earnings: €9,566 for 2021. To calculate the total units per year, employees have to divide their annual income by €9,566 which will result to their yearly earned units. The maximum amount of insurable earnings is €57,408 (for 2021) which is equivalent to 6 units. Salaries above €57,408 will be caped to 6 units which are the maximum claimable units per year. Each employee must have completed the required units to be entitled to receive a pension.

How is the pension calculated?

The pension is calculated based on the basic pension and the supplementary pension.

Basic pension

It is determined by quadrupling (x4) the weekly basic insurable earning (See column 4 of “Table 1”), and then multiplying it by 60%. Pensions are readjusted every year based on the increase of insurable earnings and the price index. In the case that an insured person has one, two or three dependants, the basic pension increases to 80%, 90% or 100% respectively.

For 2021, the basic pension is €442 if the pensioner is entitled to it in full.

Supplementary pension

From the units accumulated during the years of work, one unit is deducted for each year of work and the balance is multiplied by the basic insurance earnings of €9,566 (for 2021) and by 1.5% to calculate the annual proportional pension. The annual proportional pension is divided by the number 13 (due to the 13th pension) to calculate the proportional monthly pension.


An employee after the age of 65 has completed 130 units in the 40 years he has worked. To calculate his supplementary pension, he must first calculate his eligible units by deducting his total working year (40, i.e. 1 unit for each year of work) from his total units (130) which will result to 90 eligible units.

The mathematical operation is as follows:

Supplementary pension:           1.5% x 90 x 9,566 / 13 = €993,39

Basic pension:                             183.96 x 4 x 60% = €442

Total pension:                               993 + 442 = €1,435 per month

Lowest pension amount

The lowest monthly pension amount for 2021, this is €710.

Table 1

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