In Ukraine, starting in 2025, the conditions for retirement will change, and the highest special pensions will be restricted. This has been reported by Kontrakty.UA.
For more details, read the article by TSN.ua.
Accumulated Pension
In accordance with the requirements from international partners, particularly the IMF, a new pension reform is being developed in Ukraine.
This will entail mandatory contributions of 9% from salaries to the accumulated pension. This was announced by the Minister of Social Policy Oksana Zholnovich during a press conference on January 27.
The idea is that such salary deductions in the future will allow individuals to receive 20% of their average salary over their lifetime as a pension. Another 20% will come from the solidarity system, resulting in a total replacement coefficient of 40%.
According to Zholnovich, individuals can also voluntarily contribute a higher percentage of their salary to the accumulated pension.
Furthermore, the official stated that a decision regarding the pension reform and the introduction of the accumulated pension could be adopted in 2025, with the system expected to begin operating from 2026.
The Ministry of Social Policy clarified that the introduction of accumulated pensions will not involve an increase in taxes. The contributions from employers and citizens will not rise and will be separated from the current Unified Social Contribution (USC) and Personal Income Tax (PIT).
New Conditions for Retirement
Starting January 2025, new conditions for retirement by age will come into effect in Ukraine.
According to the law "On Mandatory State Pension Insurance," to retire at 60 years old, an individual must have 32 years of service.
This year, the right to a retirement pension is granted to those who turn 2025:
- 60 years – with at least 32 years of insurance experience;
- 63 years – with at least 22 years of insurance experience;
- 65 years – with at least 15 years of insurance experience.
Those with less than 15 years of service will not receive a pension at 65 but will be eligible for state social assistance.
Ukrainian legislation allows for the purchase of the missing service years. The cost for one month is 44% of the minimum wage, currently amounting to 3,500 hryvnias. For example, if you have 30 years of service, you would need to pay 42,200 hryvnias for the additional year required.
Military Service and Preferential Pension
In Ukraine, citizens who work in harmful industries have the right to a early pension under certain conditions. This particularly applies to metallurgists and miners, provided they have accumulated sufficient work experience, reports NV.
According to the Law of Ukraine on the Social and Legal Protection of Military Personnel, the period of military service during a special period, declared in accordance with the Law of Ukraine "On Defense of Ukraine," may be counted towards the service required for a preferential pension.
This applies to individuals who were working under conditions that qualify for a preferential pension at the time of conscription. However, the period of military service cannot exceed the work experience required for such a pension.
To confirm the preferential service, a certificate of the preferential nature of the work issued by the enterprise is required. If the enterprise is located in a combat zone or a temporarily occupied territory, the information can be verified through the register of insured persons in the State Register of Mandatory State Social Insurance.
Additionally, under the provisions of Law of Ukraine No. 1058-IV, workers who are engaged in underground work or in conditions considered particularly harmful and arduous have the right to a preferential pension according to lists approved by the Cabinet of Ministers of Ukraine.
For men, the minimum service for a preferential pension is 25 years, of which 10 years must be in the specified work. For women, this service is 20 years, with at least 7.5 years in preferential work.
In cases of working in less harmful but still difficult conditions, the preferential service for men must be at least 30 years, while for women, it should be 25 years.
Bonuses and Supplements
Unemployed Chernobyl pensioners who lived in mandatory and voluntary resettlement zones from 1986 to 1993 will be able to receive an additional payment of 2,300 hryvnias, announced the head of the Pension Security Department in Cherkasy region, Tetiana Koval.
According to the official, the payment is designated for the duration of martial law.
Additional funds are not intended for citizens who left the resettlement zones or changed their place of residence from April 26, 1986, to January 1, 1993.
Meanwhile, Ukrainian pensioners with insurance experience that exceeds the required minimum can expect additional payments. These rules will remain in effect in 2025 and will be regulated by the relevant normative acts.
The supplement amounts to 1% of the basic pension for each year of surplus experience. The minimum living wage established by law is taken into account. In 2025, the living wage will remain at 2,361 hryvnias.
Thus, each year of surplus experience will add 23.61 hryvnias to the pension (2361 × 1%). The maximum supplement for 30 years of surplus experience will be 708 hryvnias.
Additionally, Ukrainians who reach 70 years old have the right to receive an age supplement to their pension.
The age supplement to the pension is as follows:
- after reaching 70 years – 300 hryvnias,
- after reaching 75 years – 456 hryvnias,
- after reaching 80 years – 570 hryvnias.
The pension supplement is calculated automatically based on information from the pension fund. There is no need to submit an application for this. However, the supplement is only available for those whose pension does not exceed 10,300 hryvnias.
It is also noted that the supplement will first be calculated in the month following the month the pensioner reaches a certain age, and its amount will initially be proportional to the number of days after the pensioner's birthday.
Who May Have Payments Frozen
Pension payments can be frozen due to violations of certain rules, which can be avoided by timely providing accurate up-to-date information about oneself.
Therefore, pensioners may find themselves without payments if:
- the pension was assigned based on documents containing inaccurate information;
- the pensioner moved abroad;
- the pensioner requested to suspend pension payments due to temporary residence abroad;
- in the event of the pensioner's death, recognition as missing, or declaration as deceased in accordance with the law;
- the pension was not received for six consecutive months;
- the pensioner did not undergo the physical identification procedure;
- in other cases provided by law.
Who Will See Reduced Payments
In Ukraine, starting in 2025, the highest special pensions will be restricted. This new measure will affect over 17,000 pensioners. It will be in effect during the martial law period in 2025, announced the Ministry of Social Policy.
"The law on the state budget has approved a provision for the application of restrictive coefficients to pensions that exceed four times or more the average pension in the country, or 10 living minimums for disabled persons," the ministry explained.
The agency emphasizes that the current system is unjust and opaque due to imbalances that have accumulated in the pension system. Therefore, the restrictions will affect payments that currently can be as high as 60, 80, 100 thousand hryvnias or even more.
"Restrictive coefficients will help reduce the vast difference between so-called 'special' and general pensions. According to the decree, pensions exceeding 10 living minimums, including amounts determined by court decisions, will be subject to downward coefficients," the ministry reported.
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