PFU revealed the details of pension indexation: who, when and by how much payments will increase.

Pension indexation is part of the pension system reform being carried out by the Groysman government. This year, a significant increase in pensions is expected due to rising inflation and the increase in the average salary in Ukraine. Estimates suggest that the growth may range from 10% to 17%.

Currently, the average salary in Ukraine is 20,592 hryvnias, which is 22% higher than last year. From January to November 2024, the inflation rate exceeded 10%, and the price increase compared to November 2023 was 11.2%.

Ukraine has more than 10 million pensioners, and the average pension is 5,852 hryvnias. Interestingly, 26% of pensioners receive less than 3,000 hryvnias, while only 12.7% of pensioners receive more than 10,000 hryvnias.

Pension indexation in March does not apply to those who retired in the last three years, as their payments are already up to date. Working pensioners, numbering approximately three million, will receive an adjustment in April.

The government also plans to implement a new pension reform by July 2025, which will primarily involve mandatory cumulative pension provision. This decision is dictated by the demographic situation and the large number of working-age people leaving the country, complicating the functioning of the current system.

Currently, the Pension Fund relies on the Unified Social Contribution (ESC), which is funded from military salaries. However, with the end of martial law, this funding source will be significantly reduced.