Pension benefits are growing, but inflation is eating away at most of them

As of October 1, the average pension payment in Ukraine nominally increased by 9.4% compared to last year, but taking into account inflation, the real increase is only 0.7%. This was announced by the chairman of the tax committee of the Verkhovna Rada, Danylo Hetmantsev.

Hetmantsev noted that, although the increase in the average pension in annual terms is insignificant, it was managed to be preserved, thanks to taking into account inflation. The main role in this was played by the annual recalculation of pensions, which took place in March 2024.

The head of the tax committee also presented the distribution of pensioners by level of payments:

  • 25.8% receive up to 3,000 hryvnias;
  • 35.9% - from 3,001 to 5,000 hryvnias;
  • 25.6% - from 5,001 to 10,000 hryvnias;
  • 12.7% – more than 10,000 hryvnias.

According to Hetmantsev, the financial condition of the Pension Fund of Ukraine remains relatively stable. According to the results of the three quarters of 2024, revenues from the Unified Social Contribution (EUS), aimed at mandatory state pension insurance, did not fulfill the plan by 1.9%. However, the reason for this was the backlog in the 1st quarter, while in the 2nd and 3rd quarters the plans were even exceeded. In general, PFU revenues for the first nine months of the year increased by 9.3% compared to the same period in 2023.

Earlier it was reported that more than half of Ukrainian pensioners receive payments exceeding 4,000 hryvnias. The main factor in the growth of the average pension was the March indexation. Pensioners in Kyiv receive the highest pensions, an average of 7,940 hryvnias — this is more than 35% more than the national average.

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