Pension will increase by 20% without tax increases: details of the reform revealed by the Ministry of Social Policy.

Pension reform in Ukraine: accumulation system and pension increases

The Ministry of Social Policy of Ukraine has presented a comprehensive pension reform aimed at creating an accumulation system without increasing the tax burden on citizens.

According to the Ministry of Social Policy, relevant draft laws have already been submitted for consideration by government structures and interested parties for review and submission of proposals.

'The goal of the reform is to create a fair and transparent pension system so that everyone receives a decent pension,' reports the Ministry of Social Policy.

The main feature of the reform is that the employer's and citizen's contributions will not increase but will be allocated from the current Unified Social Contribution and Personal Income Tax. Employees will have the opportunity to voluntarily make an additional contribution.

It is predicted that due to the implementation of the accumulation system, pensions will grow by 15-20% compared to the average salary of a person over their lifetime, in addition to the solidarity part of the pension.

Funding of pension payments

Let us recall that in January 2025, the funding of pension payments amounted to 61.7 billion hryvnias, of which 8.8 billion were transferred through Ukrposhta, and 50.7 billion through banks.

It should be noted that the right to two pensions belongs to persons with disabilities, citizens caring for another person with disabilities, and certain categories of persons after the loss of a breadwinner.

The law on accumulation pensions is planned to be adopted in 2025, according to which funding will be carried out from three sources: the employer, the employee, and the state will contribute 2% each over three years.

It is also worth noting that pension payments are made from the 4th to the 25th of each month according to the established schedule, and it is impossible to change the specific payment date, but the method of receiving funds can be changed.