The government prepares changes to pension indexing: what to expect for Ukrainians.
According to inkorr.com: The head of the Ukrainian Parliament's Committee on Finance, Taxation and Customs Policy, Danilo Hetmantsev, expressed serious concern about the pension indexing procedure in Ukraine. This information was published on the Glavkom website.
Indexing Mechanism
According to the Law 'On Mandatory State Pension Insurance', pensions must be adjusted annually to maintain citizens' purchasing power. This process is based on the average wage and inflation rate.
'According to the results of the review of the State Budget for 2026, the parliament urged the government to present a draft law on unified approaches to indexing under general conditions by July 1, 2026.'
Current Issues
Currently, pension indexing is carried out based on outdated data from 2017, leading to situations where some categories of pensioners receive minimum payments or do not get indexing supplements at all. This creates inequalities and causes financial difficulties for the elderly.
Systemic Deficiencies
Moreover, the existing formula for calculating indexing no longer reflects the current economic situation, leading to the constant devaluation of pensions over time and violating social justice.
Therefore, Ukraine urgently needs to address the issues related to pension indexing, as the outdated formula and irrelevant data cause serious inequalities and financial difficulties for pensioners. It is important that new approaches to indexing provide a fair level of support for all citizens receiving pensions.
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