Ukrainian Government to Announce Pension Increase in February, with Higher Payments Starting March 1.

Pension Indexation in Ukraine

According to TSN.ua: The Ukrainian Cabinet of Ministers will announce the final pension indexation coefficient in February. Preliminary estimates suggest the increase could range from 11.5% to 14%. This adjustment, which takes effect on March 1, 2025, is designed to help retirees' payments keep pace with changes in the country's economic conditions. This annual adjustment is a key mechanism to protect pensioners from inflation.

Based on available data, inflation for 2025 was 8%, while wage growth is forecast to be between 14% and 20%. The overall indexation figure is therefore likely to exceed 11%, which should positively impact pensioners' financial well-being. The minimum pension increase is expected to be 100 UAH, while the maximum increase is capped at 1,500 UAH. It is also important to note that the maximum pension itself is limited to ten times the minimum pension, or 25,950 UAH.

Indexation Formula and Age Supplements

The indexation formula is calculated using 50% of the average wage growth rate over the last three years and 50% of the previous year's inflation rate. Additionally, age-based supplements are provided for retirees:

• Aged 70 to 74 — +300 UAH,
• Aged 75 to 79 — +450 UAH,
• For those 80 years and older — +570 UAH.

Guarantees for pensioners who have reached 65 stipulate that their pension cannot be less than 40% of the minimum wage.

As of January 1, 2026, the minimum wage rose to 8,647 UAH, which will also influence the calculation of pension payments. The guaranteed payment for pensioners aged 65 and over is 3,458.8 UAH. These changes aim to improve social security for Ukraine's retirees, accounting for rising prices and inflationary pressures.

Pension indexation is a crucial step in improving the financial situation of retirees, especially amid ongoing economic challenges.

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This increase in payments should help mitigate the negative effects of inflation and ensure a dignified standard of living for the elderly. With average wages continuing to rise, the new indexation rules are intended to bolster social protection for some of Ukraine's most vulnerable citizens.