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First salary, then seniority: what will determine the indexation of pensions in Ukraine

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When indexing pensions in 2020, the amount of wages will be taken into account first of all. The length of service that the retiree has will be the next factor in the transfer.
What is taken into account when indexing pensions?

This year, the indexation of payments to Ukrainians will take place individually. In general, the pension will increase by 11%. This was stated by the head of the PFC Olena Sichugova.

The size of the pension depends on the size of the salary, to a lesser extent - on seniority. That is, with a long service and at the same time low wages, the pension will not be a priori high, - said Sichugova.

What is known about the increase in pensions in Ukraine
• In May 2020, the Cabinet of Ministers of Ukraine indexes pensions and sets surcharges for certain categories of pensioners. The pension, in particular, will increase by an average of 260 hryvnias.
• The indexation of labor pensions will be 11%, and a guaranteed increase will receive 7 million retirees. Thus, the minimum pension will increase from 1,889 hryvnias to 2,997 hryvnias.
• The minimum pension was increased to UAH 2,100 for women with 30 years of insurance experience and for men with 35 years of insurance experience and more.

Who does not have pensions indexed
The resolution of the Cabinet of Ministers on exceptions to indexation does not specify anything, but in accordance with the law on pensions, various special pensions are not subject to indexation - pensions for judges, prosecutors.

It is also not necessary to count on an increase in benefits and retirees, who take into account various allowances: for example, for years of service, seniority and more. It is about situations when the estimated (basic) amount of pension is lower than the actual one that a person receives. For this category of people after indexation, the pension will not change.

indexation of pensions

Who receives what pension in Ukraine

 

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