Ukraine is preparing to index pensions by approximately 13%. It is worth noting that this increase will not affect all pensions and will be different for different categories of citizens. The exact amount of indexation is currently being determined, however, according to information from the Ministry of Finance and the Ministry of Social Policy, it will approximately be 13%.
Ukrainian law stipulates that the annual increase in pensions takes place in March and is calculated as half of the inflation rate for the previous year plus half of the average annual wage increase for the past 36 months. It is currently known that this figure will be approximately 13%, but more precisely will be determined in February.
It is important to note that indexation will not take into account the pension allowance when recalculating it. Also, pensions will increase only the part calculated according to the above formula, without affecting the full amount of payments. These measures are aimed at avoiding pension obsolescence and compensating for price and wage increases.
Taking into account indexation, a points system will also be introduced and the subsistence minimum will be increased, which did not happen in 2023.
