From 2025, strict restrictions will be introduced in Ukraine for high pensions exceeding 60-100 thousand hryvnias. This new initiative covers all payments exceeding 10 living minimums. This was reported by the Ministry of Social Policy.
The state budget for 2025 provides for the introduction of restrictions for pensions that significantly exceed the average level. This concerns payments amounting to 60-100 thousand hryvnias or more, which exceed 4 or 10 living minimums for non-working individuals.
The system of reducing coefficients:
- Coefficient 0.5 - for that part of the pension that is higher than 10 living minimums but does not exceed 11 living minimums;
- Coefficient 0.4 - for pensions over 11 living minimums but no more than 13;
- Coefficient 0.3 - for pensions over 13 living minimums but no more than 17;
- Coefficient 0.2 - for pensions over 17 living minimums but no more than 21;
- Coefficient 0.1 - for pensions over 21 living minimums.
Who is not subject to restrictions
The new rules do not apply to military pensions appointed since 2014. The restrictions will only affect part of the pension payments that are not insurance-based and are funded from other sources.
Purpose of the reform
The Ministry of Social Policy has started a pension system reform aimed at ensuring fair payments for citizens. The large gap between special purpose pensions and regular pensions undermines citizens' trust and does not encourage the payment of a one-time social contribution. The reform aims to ensure adequacy and efficiency of the entire system.
From 2025, strict restrictions will be in place in Ukraine for high pensions that exceed 60-100 thousand hryvnias. This initiative concerns all payments that exceed 10 living minimums and aims to ensure greater fairness and efficiency in the pension payment system. The new rules do not apply to military pensions and aim to reduce inequality in the country's pension system.