In Ukraine, there will be another pension indexing in the spring of 2025. Starting from March 1, retirees will receive a recalculation of their payments, allowing them to receive several hundred, and in some cases, over a thousand hryvnias more. This information is reported by Kontrakty.UA.
To find out how much and for whom pensions will increase, read the article on TSN.ua.
What is pension indexing?
Indexing is a mechanism for increasing the amount of payments from the state, which allows for the full or partial compensation of the rise in consumer goods and services prices over the past year.
Pension indexing in Ukraine is automatic. It is carried out every year in March, starting from 2019, when it became part of the pension reform.
Automatic pension indexing is one of the few increases in social payments in 2025, as the budget indicates that the minimum subsistence level and minimum wage will be frozen this year.
How much will pensions increase from March 1?
The amount of indexing is not fixed. It can be calculated using a specified formula.
To calculate it, 50% of the inflation rate for the previous year and 50% of the growth rate of salaries in Ukraine for the same period are taken. The sum of these two values determines the percentage by which the pension will be indexed.
The inflation rate for 2024 was 12.0%. At the same time, the average salary in 2024, according to the Pension Fund, was 17,486.60 hryvnias, which is 22.2% more than in 2023 (14,308.46 hryvnias).
These indicators allow us to calculate the pension indexing coefficient, which will be 1.115.
Now, the Ministry of Social Policy will calculate the coefficient and the procedure for pension indexing, which will be approved by the Cabinet of Ministers at the end of February 2025. It is possible that the coefficient will differ from the one calculated using the formula.
The minimum and maximum allowable amounts of additional payments after indexing will be 100 and 1,500 UAH, respectively.
Who will receive a pension increase of 1,500 hryvnias?
The increase will only affect the "base" pension, excluding any supplements.
For example, if the indexing is at a level of 10%, Ukrainians may receive the following amounts added to their pensions:
- a minimum supplement of 100-200 hryvnias – for those whose calculated pension is less than the minimum pension (2,361 hryvnias)
- supplements from 300 to 400 hryvnias – for Ukrainians with a calculated pension from 3,000 to 4,000 hryvnias
- supplements from 400 to 500 hryvnias – for those with a pension up to 5,000 hryvnias.
- increases of over 1,000 hryvnias – for those whose calculated pension exceeds 10,000 hryvnias.
Thus, the size of the pension increase depends on the calculated pension amount. The most significant increases will be received by those whose pension is above 10,000 hryvnias.
Who will not see a pension increase from March 1?
Indexing will not affect those who retired in the last three years – their payments are considered current. However, for such retirees, a small supplement may be established, as has been the case in previous years.
Indexing will also not apply to retirees whose pension exceeds 10 minimum subsistence levels, which is 23,610 hryvnias. If a person's pension approaches or exceeds this amount, they will not receive indexing.
For working retirees, the recalculation of pensions will occur in April. They will have a different mechanism for increasing payments.
How much was the pension increased last year?
It is worth noting that in 2024, the indexing coefficient was 1.079. This does not mean that all pensions were increased by 7.9%. The average pension then rose by 358 hryvnias or 6.7% – to 5,743 hryvnias.
The increase could not exceed 1,500 hryvnias. For those who retired in the last three years, the increase was 100 hryvnias.
How much do retirees receive in Ukraine?
According to the Pension Fund, as of October 2024, there were over ten million retirees in Ukraine.
The average pension amount is 5,852 UAH per month.
Among them, nearly three million retirees continue to work. Their pensions average 6,258 UAH.
The largest share of Ukrainian retirees – over a quarter (26%) – receive pensions of up to 3,000 UAH per month. Another 17% receive up to 4,000. Up to 5,000 UAH per month – 19%. Pensions exceeding 10,000 UAH are received by 12.7% of Ukrainian retirees.
It is important to note that in 2025, the average salary in Ukraine may reach 25,732 UAH, but growth rates will slow down due to inflation and structural changes in the labor market.