In March 2025, Ukraine will hold an annual indexation of pension payments. However, this time the process may follow a new scenario.
This was reported by URA-Inform with reference to the publication Na Pensii.
The Ministry of Social Policy of Ukraine is developing changes that will make the indexation system more fair and balanced, taking into account the limitations of the state budget and the requirements of international financial organizations.
In recent years, Ukraine has followed a unified approach to pension indexation. Under this model, minimum pensions were increased by a set percentage, while maximum payments were capped to avoid significant budget imbalances. However, this mechanism has drawn criticism because it led to an uneven distribution of funds. For example, pensioners with high payments received a significant increase: with a pension of UAH 20,000, indexation by 10% added UAH 2,000. At the same time, those who received a minimum pension of UAH 4,000 received only UAH 400. This exacerbated social inequality among pensioners.
First Deputy Minister of Social Policy Daria Marchak confirmed that the department is considering alternative indexation options.
One possible approach is to introduce differentiated indexation, which will allow more pensioners with low incomes to receive a more significant increase in payments. At the same time, indexation for high pensions may be limited or revised.
Meanwhile, the ombudsman named how many people currently live in Ukraine.