• 16/04/2024 03:48

Indexation of pensions in March 2024: who should not expect an increase in payments

 Indexation of pensions in March 2024: who should not expect an increase in payments

In the context of a pension budget deficit, the government has set restrictions on increasing pensions.

Cabinet of Ministers Ukraine approved the indexation of pensions by almost 8% from March 1, 2024. But some categories of pensioners will not receive increased payments.

Channel 24 writes about this.

Indexation of pensions – who will not feel the increase

Indexation of pensions is a tool with with the help of which the state must support the financial situation of pensioners and adapt payments to changes in the economy, in particular to inflation and the cost of living.

However, four categories of pensioners will not feel the effects of the March indexation, namely:

  • those who retired in 2021-2023;
  • those who receive a minimum pension;
  • those who receive a minimum pension;
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  • war veterans;
  • persons with high pension payments.

This decision was made to more evenly distribute the funds of the Pension Fund in conditions of deficit.

How much will pensions increase in March 2024

According to the decision of the Cabinet of Ministers, the indexation of pensions in March 2024 will be 7.9% of the base amount for calculating pensions. That is, after calculating the pension, this percentage may be even lower.

All pensions assigned before December 31, 2023 will be nominally indexed. But those who retired in the last three years (from January 1, 2021 to December 31, 2023) will receive only a“consolation” 100 hryvnia, since the government believes that their payments have already taken into account current changes in the economy.

Minimum pensionswill also be indexed, but this increase will still not reach the required pension minimum. So, together with indexation, the additional payment to pensions will decrease, and the actual amount will remain unchanged.

Another important change concerns war veterans' pensions. Until recently, the legislation regulated the size of such pensions as a percentage of the subsistence minimum. But along with the decision on indexation, the government “froze” payments to veterans – the percentage of maximum payments was changed to a fixed amount. Therefore, despite the indexation, their payments will remain at the same level.

At the same time, the indexation resolution sets an upper threshold for increasing payments. That is, the maximum amount by which the pensions of some individuals can be increased is 1,577 hryvnia.

We would like to remind you that, according to preliminary estimates of the Ministry of Social Policy, it was planned to index pensions by 13%.

< p>But in February, Prime Minister Denis Shmigal announced new figures and told who would be affected by the pension increase.

tsn.ua

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