The Ministry of Social Policy has calculated the indexation coefficient of pensions from March 1, 2024 – payments will increase by 7.9%. The corresponding draft resolution of the Cabinet of Ministers was published by the SPO of trade union associations, Ukrinform reports.
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What is known
The explanatory note to the document notes that in order to ensure indexation of pensions, previously assigned pensions are recalculated annually by increasing the average salary (income) in Ukraine, with which insurance premiums are paid and taken into account for calculating pensions.
The indicator of average wages (income) in Ukraine, used to calculate pensions, increases annually by a coefficient corresponding to 50% of the inflation rate for the previous year (5.1% in 2023) and 50% of the growth rate of average wages (income) in Ukraine , with which insurance premiums are paid, for three calendar years preceding the year in which the increase is made, compared with three calendar years preceding the year preceding the year in which the increase is made (10.72%).
Read: Indexation of pensions in 2024: The Cabinet of Ministers confirmed an increase of 13%
“Thus, the indexation of pensions will be 7.9% ((5.1% + 10.72%)/2),” says the explanatory note.
The minimum increase should not be less than 100 UAH, the maximum will not exceed 1,577 UAH.
From March 1, indexation will be carried out for pensioners who paid insurance premiums, military personnel, and Chernobyl survivors with disabilities. Monthly insurance payments to victims of industrial accidents and occupational diseases resulting in loss of ability to work will also increase.
From July 1, 2024, it is proposed to index pensions for civil servants, people's deputies, scientists, and local government employees.
The project also proposes an annual automatic recalculation of pensions for working pensioners.
Read: Indexation of pensions: the Ministry of Social Policy named the approximate amount in 2024
< h3>Recall
Earlier, the Ministry of Social Policy stated that pensions would be indexed by 13% from March 1, 2024, but they clarified that these are preliminary calculations, the final indexation coefficient will be known closer to the end of February. The same preliminary calculations were mentioned by Prime Minister Denis Shmyhal in January of this year.
