In 2025, Ukraine plans to index pensions by 10%, which will become part of the budget project of the Pension Fund of Ukraine. However, the final amount of indexation will be determined only in March 2025, since as of January there are still no final statistical data on inflation and the dynamics of wage growth, on which the exact indexation coefficient depends.
The total amount of expenditures in the draft budget of the PFU for 2025 is 908.2 billion hryvnias. The budget takes into account the recalculation of pensions and social benefits, including indexation, which will take place from March 1, 2025. Applying a factor of 1.10 will mean that pensions will increase by 10%.
According to forecasts, the indexation may be even higher — at the level of 11%, thanks to a significant increase in wages. According to the National Bank of Ukraine, inflation in 2024 will be at the level of 9.7%, which will give 4.85% for the indexation calculation. In addition, the average dynamics of salary growth over the past three years will be 12.7%, which will give an additional 6.35%.
Indexation of pensions will be carried out according to the law, and even in the event of a pension reform, all pensions will be indexed in March 2025. However, it is worth noting that the increase will not be the same for all pensioners. Part of the pensioners will not feel the increase due to the specifics of the calculation of pensions.
Pension according to the formula (average salary for three years multiplied by the ratio of the person's salary to the average, by seniority and a factor of 1%) can be significantly less than the actual payment. For example, if, according to the formula, the pension is calculated at the level of UAH 1,230, the Pension Fund will “bring” the payment to the minimum — UAH 2,361. Thus, even after indexation, the pension calculated by the formula may increase, but the actual payment will remain at a higher level.
The exact amount of indexation will be known only closer to March 2025, when official data on inflation and salary growth in recent years will be calculated.
