The introduction of a cumulative pension scheme will not entail an increase in taxes, as stated by the Ministry of Social Policy following reports about deductions of 9% from salaries for future pensions. This was reported by TSN, according to Kontakty.UA.
This was mentioned in a post on the official page of the Ministry of Social Policy of Ukraine.
The Ministry has developed a comprehensive reform of the pension system. Relevant draft laws have been submitted for consideration by government bodies and other interested parties for review and suggestions.
"The goal of the reform is to create a fair and transparent pension system so that every Ukrainian can receive a decent pension," they emphasized.
They also noted that the introduction of the cumulative system, which is part of the reform, will allow workers to further increase the amount of their future pension throughout their working life.
It is important to understand that this will not lead to an increased burden on taxpayers, as contributions from employers and citizens will not rise and will be separated from the current Unified Social Tax (UST) and Personal Income Tax (PIT).
Employees will have the option to make additional voluntary contributions if they wish.
It is expected that the implementation of the cumulative system will allow for an increase in pensions by an additional 15-20% compared to an individual's average salary over their lifetime, in addition to the solidarity part of the pension.
Recall that earlier it was mentioned that the Cabinet's draft law on pension reform could be submitted for consideration. The first steps towards the implementation of the cumulative pension system in Ukraine may begin as early as 2026.