In 2025, Ukraine plans to index pensions by 10%, which will be part of the draft budget of the Pension Fund of Ukraine. However, the final indexation amount will be determined only in March 2025, since as of January there are still no final statistical data on inflation and wage growth dynamics, 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, in particular the indexation, which will take place from March 1, 2025. Applying a coefficient of 1.10 will mean that pensions will increase by 10%.
According to forecasts, indexation may be even higher — at 11%, due to a significant increase in wages. According to the National Bank of Ukraine, inflation in 2024 will be at 9.7%, which will give 4.85% for calculating indexation. In addition, the average dynamics of wage growth over the past three years will be 12.7%, which will give an additional 6.35%.
Pension indexation will be carried out by 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. Some pensioners will not feel the increase due to the specifics of pension calculation.
The pension according to the formula (average salary for three years multiplied by the ratio of the person's salary to the average, by the length of service and the coefficient of 1%) may be significantly less than the actual payment. For example, if the pension is calculated at UAH 1,230 according to the formula, the Pension Fund will “pull” 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 wage growth in recent years will be calculated.
