Ukraine Pension Indexation: Ministry of Social Policy Plans 13% Increase in March

In Ukraine, indexation of pensions is due to take place in March. Similar plans are confirmed by the Ministry of Social Policy.

According to preliminary calculations by the Ministry of Social Policy, indexation could be about 13%. However, it is not yet possible to name the specific amount of the bonus for each pensioner. According to preliminary calculations, an increase of 1 thousand UAH will be received by Ukrainians who currently receive a “net” pension in the amount of 7,692 UAH.

This became known from an interview with the Minister of Social Policy Oksana Zholnovich for “Ukrinforma”.

“We are not considering any transfer options. We plan to fulfill all our standards that are planned within this year. Of course, there may be emergency circumstances. This is war. But now in the current version we plan to do this indexing,” Zholnovich said.

Indexation is scheduled for March. It is impossible to carry it out earlier, because statistical data does not arrive until February. Without statistics, it is impossible to calculate the exact size of indexation.

So, according to the formula, the indexation amount is calculated as follows: 50% of inflation for 2023 + 50% of average salary growth (annual, taking into account the last 36 months).

It is difficult to say the exact size, however, both the Ministry of Finance and the Ministry of Social Policy expect it to be about 13%. However, this does not mean that all pensions will be increased by 13%. The size of the increase depends on other factors.

In particular, they will increase the “naked pension”. This is the payment amount calculated using the formula. And the pension amount according to the formula may be less than the actual one. Thus, in Ukraine, pensions are increased both by age category and by length of service. So some Ukrainians, instead of an increase of 13%, may receive an increase of only, for example, 7%.

At the same time, they will not increase pensions that have not become obsolete. Indexation is needed in order to modernize pensions assigned many years ago. Ukrainians who received payments last year and even the year before will most likely be left without the March indexation.

Let us remind you that the pension reform in Ukraine continues, and the conditions for retirement are gradually becoming more complicated. As reported by the Main Directorate of the Pension Fund of Ukraine, in 2024, in order to assign a pension at age 60, at least 31 years of insurance experience will be required.

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2024-01-15 01:17:23


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