The next pension payment indexation is scheduled for March 2025. Initially, pensions may be increased by 11.53%. Writes biz.nv.ua. This information is reported by Contracts.UA.
Pension Indexation in March 2025: Possible Coefficient
In Ukraine, the pension indexation will take place in spring 2025, starting from March 1. The exact amount of the pension increase through indexation in 2025 is still unknown, but there are already preliminary calculations.
The procedure for calculating the pension indexation coefficient is defined by part two of Article 42 of the Law of Ukraine On Mandatory State Pension Insurance.
This can be calculated using a set formula that takes into account inflation for 2024 (12.0%).
According to the PFU, the average salary in 2024 was 17,486.60 UAH, which is 22.2% higher than in 2023 (14,308.46 UAH). The average salary indicator for the years 2021-2023 was 13,559.41 UAH, and for the years 2022-2024 it was 15,057.09 UAH.
Consequently, the growth rate of the average salary over the three calendar years preceding the year of increase, compared to the three calendar years before the previous year, will be 11.05%. Thus, the pension indexation indicator will be 11.53% ((12.0% + 11.05%) /2).
Soon, the Ministry of Social Policy will calculate the coefficient and the procedure for pension indexation, which will be approved by the Cabinet of Ministers at the end of February. It is possible that the coefficient will differ from the calculated one.
How Much May Be Added to the Pension and Who Will Not Be Affected by the Indexation
At the same time, the increase will only affect the "basic pension", excluding any additional payments. Indexation will not concern those who retired in the last three years, as their payments are considered current.
The minimum and maximum allowable amounts for additional payments after the indexation will be 100 and 1500 UAH, respectively.
Recall that due to the indexation, starting from March 1, 2024, pensions increased by 8% for over 10 million Ukrainians. The average increase in pensions after indexation was 397 UAH, and the average pension in Ukraine rose to 5792 UAH.