The Ministry of Social Policy has indicated a proposed indexation coefficient of 1.10 in its draft resolution, which remains open for discussion until January 10 with potential amendments.
The new pension calculations will be based on this coefficient, affecting both pensions and monthly payments. The government has allocated 44.7 billion UAH in the Pension Fund budget for 2025 for additional payments aimed at supporting the most vulnerable segments of society.
Key aspects of the Pension Fund budget for 2025 include:
Projected total income: 904.8 billion UAH with an initial balance of 910.2 billion UAH.
Minimum wage: 8000 UAH (unchanged since 2024).
Minimum subsistence level for people with disabilities: 2361 UAH (no changes for 2025).
Projected revenues from the Unified Social Contribution (USC): 589.9 billion UAH.
These figures are derived from the Pension Fund's reporting data, which includes forecasts on the number of pensioners and total payment volumes, as well as macroeconomic indicators for the development of Ukraine’s economy from 2025 to 2027.
It is also reported that pension indexation will take into account two factors:
50% of the average wage growth over the past three years.
50% of the inflation rate from the previous year.
In 2024, the indexation coefficient was set at 1.079, resulting in an average pension increase of approximately 358 UAH, while the average payment amount is reported to be 5743 UAH. Younger retirees, especially those who retired in the last three years, received an additional 100 UAH during the recalculation for 2024.
In 2025, the expected pension increase will be slightly higher, averaging around 365 UAH. However, these figures are preliminary, and actual amounts may vary. Despite this modest increase, many retirees may find it insufficient given the ongoing rise in the cost of living and inflation.
When will retirees receive the new payments?
It is anticipated that recalculated pensions will be issued starting March 1, 2025. Although the adjustments aim to provide some relief, the actual increase may not significantly improve the financial situation of many retirees in the current economic climate.
Discussions on the indexation draft are ongoing, and additional measures may be introduced to better support vulnerable groups as the government continues to monitor the financial situation.