Points instead of seniority: Ukraine proposes to change the approach to pension calculation.

The Ministry of Social Policy of Ukraine plans to implement a new pension calculation system based on a point-based principle, Minister Oksana Zholnovych announced at the Global Digital Social Forum.

According to the minister, the main goal of the new system is to simplify and make the pension accrual mechanism more fair.

"Within the framework of pension reform, we want to make changes that would demonstrate a very simple mechanism for calculating and paying pensions," noted Zholnovych.

The foundation of the new approach will be two key criteria: the length of service and the size of contributions to the insurance system. These indicators will be converted into points, which will accumulate monthly throughout each individual's working life.

Upon retirement, the total number of points will be converted into a percentage of the average salary in Ukraine.

"This is the most important category that reflects the real value of money. What we all, as Ukrainians, earn on average, is the amount by which we live in a particular year," said the minister.

Zholnovych emphasized that this approach would ensure "the fairest format for the accumulation of our solidarity pension contributions." This initiative is part of a broad pension reform aimed at improving the system, which, according to the minister, "has often and significantly changed, making pension calculation more complicated."

Earlier, the Ministry of Social Policy explained the need for changes in the pension reform.