Ukraine plans to implement its first-ever indexation of the lowest pensions. The poorest segments of the population will see their incomes increase by nearly 20%, according to a press release from the Ministry of Social Policy.
It is noted that previously, such pensions were not subject to indexation and were adjusted only in conjunction with increases in the subsistence minimum (which rises at a slower rate than indexation). Including these payments in the scope of indexation is aimed at significantly increasing the lowest pensions.
“In accordance with the Cabinet of Ministers’ Resolution adopted by the Government, the pension indexation rate effective March 1, 2023, will be 19.7%. Pension increases will be provided to 10.5 million pensioners,” the press service noted. “Also, for the first time, the state-guaranteed minimum pension will be indexed. The increase will range from 420 to 520 UAH (compared to the pension amounts set as of March 1, 2022).”
Monthly compensation payments to pensioners aged 70 and older with pensions of up to 10,340 UAH will continue. Specifically:
- 570 UAH for people over 80 years of age;
- 456 UAH for people aged 75–80;
- 300 UAH for people aged 70–75.