Pension indexing: how payments to Ukrainians will increase starting March 1.

Due to the increase in salaries in 2024, Ukraine will implement pension indexation starting from March 1. The amount of indexation is determined by inflation as well as the average salary indicators from the previous four years. A rise in payments of more than 10% is possible. Details regarding pension calculations were explained on the "RBK-Ukraine" portal.

Pension Indexation

The portal clarified that the pension indexation will occur based on Article 42 of the law "On Mandatory State Pension Insurance." This article states that payments are recalculated annually starting from March 1. Several figures are used in the calculation:

• the average salary indicator for the previous year (in this case — for 2024);
• the inflation rate;
• the average salary growth indicator for the three years leading up to 2025 — specifically for 2022-2024;
• the average salary growth indicator for the three years leading up to 2024 — specifically for 2021-2023.

Based on this data, a special coefficient is calculated, which is used for pension indexation, as stated in the law.

Meanwhile, "RBK-Ukraine" provided the necessary data for the calculations.

1. On February 18, the Pension Fund established the average salary figure from which pension contributions were made in 2024. The special table on the PFU website indicates that this amount is 17,486.6 UAH.
2. The average salary for 2021-2023 is 13,559.41 UAH;
3. The average salary for 2022-2024 is 15,057.09 UAH;
4. Inflation in 2024 is projected to be 12%.

The difference between the average salary indicators is 11.05%, as calculated by the portal. Consequently, the potential pension indexation will be 11.53%. This calculation was made using the formula (12% + 11.05%)/2.

However, it is noted that the figure provided is an estimate. The final amount of indexation will be determined by the Cabinet of Ministers through a special resolution.

It is worth mentioning that on February 17, the Pension Fund warned that for some Ukrainians, pension indexation will be delayed. Specifically, in April, the recalculation will affect those Ukrainians who receive a pension, continue to work, and have been earning a salary for at least two years. For this category, the payments will be recalculated automatically. If the two-year period is met later, the pensioner will have to apply to the fund independently, as explained by the agency.

Reminder: On February 19, the publication "24 Kanal" reported how a Ukrainian can receive a pension of 20,000 UAH. Meanwhile, in the summer of 2024, the Opendatabot portal reported on the average payout amounts in various regions and whether 20,000 UAH pensions exist.