• 23/04/2024 08:19

If the West stops aid: there is money for retirement, but there may not be enough for indexation

 Если Запад прекратит помощь: на пенсии деньги есть, на индексацию может не хватить

Photo: Minister of Social Policy Oksana Zholnovich (facebook.com.pressclublviv) Author: Alexander Belous

The Ukrainian government may cancel the indexation of pensions planned from March 1 if Western financial assistance is delayed. But there will be enough money for a basic pension.

This was reported by RBC-Ukraine with reference to a statement by the Minister of Social Policy Oksana Zholnovich during the telethon.

The Minister reassured all pensioners receiving an old-age pension. According to her, the lion's share of the Pension Fund's budget is formed from internal pension revenues, which are provided by Ukrainian payers.

“It may not be possible to talk about indexation if there are such risks. But the basic pension will be paid, and we will find the funds for this,” she said.

At the same time, the minister recalled that international assistance finances social payments, including to internally displaced persons.

“But now the Ministry of Social Policy at the end of the year entered into an agreement with the World Bank for almost $2 billion, and these funds will cover our basic social expenses for the first months. So I am sure that people will not be left without the necessary funds,” Zholnovich said.

The minister also noted that in case of problems, with the help of the Ministry of Social Policy, she will expand programs with international agencies, which are still allocating funds.

Problems using

Earlier, First Deputy Prime Minister – Minister of Economy Yulia Sviridenko told the Financial Times that Ukraine would likely have to postpone the payment of pensions and salaries to civil servants if the EU and the US do not provide promised financial assistance early next year.

Later, Sviridenko tried to clarify her statement for the foreign press on her Facebook. In particular, she said that there is a risk of delays in the long term, and the government has a plan B at the beginning of 2024, but did not specify what it is.

Pension indexation

In September, the Ministry of Finance, in an explanatory note to the draft state budget for 2024, stated that “the envisaged amount of expenses for pension provision will make it possible to finance the payment of pensions, additional payments and increases to pensions, which, in accordance with current legislation, are financed from budgetary funds, as well as to carry out annual indexation pensions.”

The Ministry of Social Policy proposed indexing pensions in 2024 from March 1, as defined by law. The amount of indexation will depend on the level of inflation and average salary. We can talk about them at the beginning of 2024 after the receipt of statistical data for 2023.


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