Ukraine plans to increase pensions for more than 10 million citizens – PM Shmyhal
Starting March 1, pensions will be increased by almost 8%, Prime Minister of Ukraine Denys Shmyhal announced in Telegram on Feb. 23.
According to the Prime Minister, the decision was made at a government meeting.
Read also: Pensions safe even if Senate bans using American aid for such payments, Ukrainian MP assures
“This is the third indexation during the full-scale war,” he said.
“Pensions will be increased by almost 8%. The average increase will amount to UAH 322 ($8.41), and the average pension will increase to UAH 5,717 ($149).”
The indexation will affect more than 10 million Ukrainians: 9.5 million civilian pensioners, almost 600 thousand pensioners of law enforcement agencies and almost 100 thousand Chornobyl victims, said Shmyhal.
Read also: February 2024 pension recalibration after January subsistence minimum surge
“In addition, starting April 1, pensions will be automatically recalculated for 654,000 working pensioners, taking into account the updated insurance record,” he added.
“Also, in 2024, for the second time in a row, the lowest pensions will be indexed.”
According to the Ministry of Social Policy, the amount of indexation was calculated based on the final official indicators of economic development in 2023.
“Inflation is 5.1%, and the average salary from which insurance premiums are paid is 7%. This means that the growth of pensions will cover the growth of prices in 2023,” the Ministry’s press service stated.
According to the Ministry of Social Policy, the government has introduced temporary restrictions on the maximum amount of pension indexation. It will be limited to UAH 1.5 thousand for all recipients of pensions and insurance payments, regardless of category.
“This restriction will allow for a more equitable distribution of available financial resources for indexation and ensure higher pensions for citizens receiving the lowest payments. At the same time, according to any calculations, the increase in pensions will be at least UAH 100 ($2.61),” the Ministry emphasized.
In early February, Roksolana Pidlasa, the head of the Verkhovna Rada Budget Committee, said that if the United States bans funding pensions with American financial aid, it will not stop Ukraine paying them, as pensions are a protected item of expenditure. So the money for these payments must be found in any case.
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