Pension Indexation: Who Will Receive Additional Payments Ranging from 300 to 1000 Hryvnias Starting March.

The Ministry of Social Policy of Ukraine plans to increase pensions by 10% starting from March 1, 2025.

This became known from the draft budget of the Pension Fund for the next year.

Pension expert Sergey Korobkin explained that the document provides for an increase in salaries used in the pension calculation formula by a coefficient of 1.1.

According to preliminary data, the inflation rate for 2024 was 11%, possibly 12%, although it was expected to be 9%. The National Bank will finalize this calculation.

The expert explained that the increase in pensions will depend on their amount. For example, if the pension is 10,000 UAH, the increase may amount to 1,000 UAH, and if it is 5,000 UAH - up to 500 UAH. In the case of a pension of 3,000 UAH, the increase may be 300 UAH. However, these are only approximate calculations, as only the basic amount of the pension without additional payments should be considered.

It is worth noting that pensions amounting to 10 subsistence minimums (23,610 UAH) will not be subject to indexation due to restrictions.

The draft budget of the Pension Fund does not mention expenses for pension reform starting from July 1. Monthly, to increase pensions for all pensioners even by 100 UAH, an additional one billion UAH will be needed.

Other Plans and Changes Regarding Pensions

Pension indexation is planned to start from March 1, 2025, using a coefficient of 1.10, which provides for an increase in payments by 10%.

Beginning July 1, 2025, a large-scale pension reform is planned, which will allow citizens to receive a pension of no less than 60% of their earnings according to European standards.

It should also be noted that pensioners aged 65 and older with the required work experience receive guaranteed payments of 40% of the minimum wage.

There is also a system of age-based supplements, under which pensioners aged 70-74 receive an additional 300 UAH, those aged 75-79 receive 456 UAH, and those over 80 years receive 570 UAH.