The head of the Committee of the Verkhovna Rada of Ukraine on finance, tax and customs policy, Danilo Hetmantsev, expressed serious concerns regarding the indexing of pensions in Ukraine. This information was published on the site of Glavkom.
How the indexing mechanism works
According to the Law 'On Mandatory State Pension Insurance', pensions are recalculated annually to maintain their purchasing power. This is done based on the average wage and inflation rate.
'According to the results of the review of the draft State Budget for 2026, parliament called on the government to present a bill on unified approaches to indexing on general terms by July 1, 2026.'
Current problems
At the moment, pension indexing is based on outdated data from 2017, which has led to a situation where some categories of pensioners receive very low indexing or are completely left without it. This creates inequalities and financial difficulties for the elderly.
Systemic deficiencies
Moreover, the existing formula for calculating indexing is outdated and does not correspond to the current economic situation. This causes a constant devaluation of pensions over time, violating the principles of social justice.
Ukraine has systemic problems with pension indexing caused by an outdated calculation formula and lagging data from previous years, leading to inequalities and financial difficulties for pensioners.