High pensions over 100 thousand hryvnias will be restricted from 2025: who will lose.

According to inkorr.com: Starting from 2025, strict restrictions will be introduced in Ukraine for high pensions exceeding 60-100 thousand hryvnias. This innovation concerns payments that exceed 10 living minimums, as reported by the Ministry of Social Policy.

The state budget for 2025 provides for the introduction of restrictions on pensions that significantly exceed the average level. This applies to amounts from 60 to 100 thousand hryvnias that exceed 4 or 10 living minimums for non-working citizens.

The system of decreasing coefficients:- Coefficient 0.5 - for part of the pension exceeding 10 living minimums, but no more than 11;- Coefficient 0.4 - for pensions over 11 living minimums, but no more than 13 living minimums;- Coefficient 0.3 - for pensions over 13 living minimums, but no more than 17 living minimums;- Coefficient 0.2 - for pensions over 17 living minimums, but no more than 21 living minimums;- Coefficient 0.1 - for pensions over 21 living minimums.

Who is exempt from restrictions

These innovations will not apply to military pensions awarded since 2014. The restrictions will only affect part of the pension payments that are not insurance and are financed from other sources.

Purpose of the reform

The Ministry of Social Policy has initiated a pension system reform to ensure citizens receive fair payments. The significant difference between special-purpose pensions and regular ones undermines citizens' trust and does not encourage them to pay the unified social tax. The reform aims to ensure the adequacy and efficacy of the entire pension mechanism.

Thus, starting from 2025, Ukraine will introduce restrictions for high pensions exceeding 60-100 thousand hryvnias, to ensure greater fairness and efficiency in the pension payment system. The new rules will not apply to the pensions of military personnel and are aimed at reducing inequality in the country's pension system.