Pension indexation: what payments will be increased, when and by how much
26 February 16:49
The government has decided to index pensions in 2025 and determined the amount and procedure for the corresponding increase in payments. This was reported by the Pension Fund of Ukraine, according to
It was reminded that according to part two of Article 42 of the Law of Ukraine “On Compulsory State Pension Insurance”, in order to ensure pension indexation, previously granted pensions are recalculated annually from March 1 by increasing the average wage (income) in Ukraine, from which insurance premiums are paid and which is taken into account for calculating pensions.
What payments will be indexed?
The government decree provides for indexation of
– pensions granted in accordance with the Laws of Ukraine “On Compulsory State Pension Insurance”, “On Pensions for Persons Discharged from Military Service and Certain Other Persons”, “On Civil Service”, “On Service in Local Self-Government Bodies”, “On the Status of a Member of Parliament of Ukraine”, “On Scientific and Scientific and Technical Activities”;
– minimum disability pensions as defined in paragraphs two and three of part one of Article 22 of the Law of Ukraine “On Pensions for Persons Discharged from Military Service and Certain Other Persons” and part three of Article 54 of the Law of Ukraine “On the Status and Social Protection of Citizens Affected by the Chornobyl Disaster”;
– allowances for special services to fighters for the independence of Ukraine in the XX century, as defined in the second paragraph of the first part of Article 5 of the Law of Ukraine “On Pensions for Special Services to Ukraine”.
– monthly insurance payments to victims of industrial accidents and occupational diseases that caused disability and to persons entitled to insurance payments in the event of the victim’s death.
In addition, the amount of the minimum pension for non-working pensioners aged 65 with full insurance coverage was increased, as well as the amount of minimum pension payments to persons with war-related disabilities, combatants and different age categories depending on their insurance coverage.
To what extent and when will payments be indexed?
According to the government’s decision, pensions will be indexed by 11.5% in 2025 starting March 1.
According to the Ministry of Finance, the average pension in Ukraine will increase from UAH 5,789 to UAH 6,345.
At the same time, the decree stipulates that the minimum pension increase due to indexation cannot be less than UAH 100, and the maximum cannot exceed UAH 1,500.
Pensions will be recalculated automatically. As in the previous year, the resolution sets the date for the automatic recalculation of pensions for working pensioners as April 1, 2025.
What pensions do Ukrainians receive now
At the end of January this year, MP Nina Yuzhanina cited the following data from the Pension Fund:
“The average pension amount over the last quarter has hardly changed and amounts to UAH 5,789.05, while pensions
– more than UAH 10,000 were received by 1.26 million pensioners (average pension is UAH 15.4 thousand)
– from UAH 5,001 to UAH 10,000 – 2.63 million pensioners (average pension 6.9 thousand UAH);
– from UAH 4,001 to UAH 5,000 – 1.94 million pensioners (average pension is UAH 4.4 thousand);
– from UAH 3,001 to UAH 4,000 – 1.82 million pensioners (average pension is UAH 3.5 thousand);
– up to UAH 3,000 – 2.68 million pensioners (average pension is UAH 2.8 thousand).
About 344,000 people receive pensions that do not exceed the subsistence level, and almost 50,000 pensioners receive pensions of less than UAH 1,500.
Pensions over UAH 10 thousand (12% of pensioners) account for 33% of all pension funds.”
More than 17 thousand “special pensioners” will have their payments limited
The decision to introduce restrictive coefficients for pensions exceeding 10 subsistence minimums, i.e. UAH 23,610, is enshrined in Article 46 of the Law of Ukraine “On the State Budget of Ukraine for 2025.”
The government resolution stipulates that
– a coefficient of 0.5 will be applied to the part of the pension that exceeds 10 subsistence minimums (UAH 23,610) and does not exceed 11 subsistence minimums (UAH 25,971);
– to the part of the pension that exceeds 11 subsistence minimums (UAH 25,971) and does not exceed 13 subsistence minimums (UAH 30,693) – 0.4;
– to the part of the pension that exceeds 13 subsistence minimums (UAH 30,693) and does not exceed 17 subsistence minimums (UAH 40,137) – 0.3;
– to the part of the pension that exceeds 17 subsistence minimums (UAH 40,137) and does not exceed 21 subsistence minimums (UAH 49,581) – 0.2;
– to the part of the pension that exceeds 21 subsistence minimums (UAH 49,581) – 0.1.
Thus, the differentiation of pension amounts remains, but, as the Ministry of Social Policy emphasized, taking into account the realities of wartime, limited funding and, most importantly, fairness and proportionality of pension calculation, the above restrictions will apply in 2025.
