Indexation of pensions: to whom and how much will payments be increased from March 1

27 February 2023, 16:15 | Economy
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Despite the war and the difficult economic situation, indexation of pensions will take place in Ukraine this year. As stipulated by the pension legislation, it will begin on March 1.

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The Minister of Social Policy Oksana Zholnovich spoke on the air of the telethon about the indexation mechanism this year, Facts reports..

“The calculations were made on the basis of statistical data, because the indexation is carried out according to a complex formula. This year's inflation is just part of that formula.. This is to make it immediately clear why pensions will be indexed exactly by 19.7%.. Because previous years are also taken, the average salary, inflation, and thus the amount of indexation, or the percentage of indexation, by which pensions are increased, is derived,” she explained..

In addition, according to the minister, this year the state introduced a mechanism for balancing pensions so that everyone receives a uniform increase.. This is the main difference from the previous indexing.

“We have seen that our smallest pensions are not subject to indexation. What is meant? There are approximately 4 million people who either have not too much experience (once it was possible to retire with 5 years of insurance experience), or wages were very low. And accordingly, the calculation of their pension is small, maybe 1.5 thousand. or 1.7 thousand. To balance these pensions, several state surcharges were introduced.. If you have such a small pension, but you, for example, are 70 years old and have a full insurance record, you will definitely be paid 3,000 hryvnias. This means that to your 1.5 thousand. you will still be given a " Therefore, we accepted as a fact the pension that was calculated last year for people on March 1, and we tell people that this is a payment for pensioners who receive the least. We will index it by 19.7%, and add at least UAH 400 to each of these minimum pensions,” said Oksana Zholnovych..

In addition, she noted that a person with a disability, who is the liquidator of the consequences of the Chernobyl nuclear power plant, will receive 1,400 hryvnia surcharges, a military pensioner - an average of 1,400 hryvnia surcharges, a pensioner by total length of service, by age, whose pension is more than the minimum - an average of 750 hryvnia surcharges.

“We have limited the upper payment of indexations to UAH 1,500 and no more.

Even if the calculation for large pensions is higher, we will still add UAH 1,500. Why? Because we need a resource for these smallest payments, in order to give an opportunity to add 400, 500 hryvnias to our pensioners with the lowest pensions,” the minister summed up..

In Ukraine, disability pensions are calculated in accordance with the age, group and length of service of a person.. Recall whether the indexation of disability pensions will be carried out in March.




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