This is reported by RBK-Ukraine referencing the speech of the Prime Minister of Ukraine, Denys Shmyhal, during a Cabinet meeting, and the press service of the Ministry of Social Policy of Ukraine. This information is also provided by Kontrakty.UA.
"Starting from March 1, we will conduct pension indexing. For over 10 million citizens, pensions will increase by 11.5%," Shmyhal announced.
According to him, the minimum increase in pensions will be no less than 100 hryvnias.
"To fairly distribute the financial resources and specifically raise the lowest pensions, we are implementing a maximum indexing amount of up to 1500 hryvnias," the Prime Minister added.
The Ministry of Social Policy noted that the indexing amount is calculated based on official economic growth indicators for 2024: a 12% increase in consumer prices; an 11% increase in the average wage from 2022 to 2024.
According to the adopted resolution, starting from March 1, pensions will be indexed for:
- 9.2 million retirees who receive pensions on general grounds;
- 672 thousand retirees from law enforcement agencies;
- 98 thousand individuals receiving pensions due to disability and in cases of loss of a breadwinner as a result of the Chernobyl disaster;
- 79.6 thousand pensioners with disabilities due to war and combatants receiving minimal pension payments;
- 23.4 thousand pensioners who are former employees of local self-government and civil servants.
The average projected increase in pensions after indexing will be 556 hryvnias, with the average pension in Ukraine rising from 5789 hryvnias to 6345 hryvnias.
Additionally, starting from March 1, monthly insurance payments will be indexed for 158 thousand individuals affected by industrial accidents and occupational diseases that resulted in loss of ability to work, as well as for those entitled to insurance payments in the event of the victim's death.
Moreover, on April 1, there will be an automatic recalculation of pensions for 629 thousand working retirees (taking into account their updated insurance record).
At the same time, temporary restrictions will apply to the maximum amount of pension indexing. The increase resulting from indexing will be capped at 1,500 hryvnias for all pension and insurance payment recipients, regardless of category.
It is noted that this will allow for a more equitable distribution of the limited financial resources for indexing and ensure pension increases for Ukrainians receiving the lowest payments.
Pension Indexing in Ukraine
Recall that we previously reported that a pension increase in Ukraine is expected from March 1, when a planned indexing will take place. Pensions are indexed based on a coefficient that takes into account 50% of the average salary growth over the last three years and 50% of inflation from the previous year.
Recently, the Ministry of Social Policy prepared a draft budget for the Pension Fund of Ukraine for 2025.
The budget of the Pension Fund allocates 44.7 billion hryvnias for supplements defined by the resolutions of the Cabinet of Ministers of Ukraine regarding pension indexing and additional measures to enhance the level of social protection for the most vulnerable segments of the population.
Recently, The Pension Fund of Ukraine approved the average salary (income) indicator for 2024, from which insurance contributions have been paid and which is used for calculating pensions. This indicator allows for the calculation of the pension indexing coefficient, which will be 1.115.