Pension payments are rising, but inflation is eating up 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 reported by the head of the Verkhovna Rada Tax Committee, Danylo Hetmantsev.

Hetmantsev noted that although the increase in the average pension in annual terms is insignificant, it was possible to maintain it, 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 Chairman 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% – over 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 (USC), aimed at mandatory state pension insurance, fell short of the plan by 1.9%. However, this was due to the lag in the first quarter, while in the second and third quarters the plans were even exceeded. In general, the PFU's revenues for the first nine months of the year increased by 9.3% compared to the same period in 2023.

It was previously reported that more than half of Ukrainian pensioners receive payments exceeding 4,000 hryvnias. The main factor in the increase in the average pension was the March indexation. The highest pensions, an average of 7,940 hryvnias, are received by pensioners in Kyiv — more than 35% more than the national average.

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