“Who won’t benefit from Ukraine’s pension indexation: Explained”

In Ukraine, indexation and recalculation of pensions is carried out during the current year. However, not all citizens of retirement age can count on raising payments from the state.

Who will not be affected by the indexation of pensions

Due to the indexation carried out in March 2023, payments for some pensioners increased by an average of 19.7%, which is about UAH 600. Pensions were indexed for more than 10.5 million Ukrainians.

Then four categories of pensioners did not fall under indexation, namely:

• pensioners who have insufficient insurance experience and continue to work (their estimated pension is less than UAH 2,100);
• former employees of the prosecutor’s office;
• recipients of pensions exceeding the maximum statutory amount of UAH 20,930;
• recipients of a monthly life allowance (in particular judges).

Second wave of indexing

All of the above categories of Ukrainians will not fall into the second wave of indexation of payments. It is scheduled for July 2023.

During the second wave of indexation, pensions will rise for the following categories:

• civil servants;
• scientists;
• employees of local governments.

An indexation of 19.7% is planned for payments made before December 31, 2022.

It is worth adding that the indexation of pensions is not a recalculation. This is an adjustment of the amount of the payment, taking into account the rate of inflation in the country and the change in the average salary for previous years.

As for the recalculation, it is provided when any of the conditions that are taken into account when calculating a pension changes. For example, if the experience or financial security changes.