Additional pension indexing is possible: conditions for increasing payments

According to hvylya.net: The Ministry of Social Policy is considering the possibility of increasing pensions in 2025 if the financial condition of the insurance system improves. This was reported by the First Deputy Minister of Social Policy Daria Marchak during an interview with Radio Svoboda.

According to Marchak, the decision on additional payments will depend on the state of the Pension Fund's insurance funds. 'If we see that the financial condition of the insurance funds allows us to take any additional support steps, we will initiate them,' explained the deputy minister.

What hinders additional increases

The law does not provide for several pension indexations within a year, so additional increases may be complicated, Marchak explained.

It is also important to note that the increases will only concern insurance pensions, which are financed from contributions of working citizens, since special pension systems are financed from the state budget. Additional payments from the state budget may be more complicated.

Current situation with pensions

Currently, the minimum pension in Ukraine is about 3000 hryvnias, and the average is about 6000 hryvnias. In March, another pension payment indexation took place.

Marchak noted that the pension system needs to be reformed due to numerous shortcomings, in particular, the large number of various types of allowances and subsidies, which complicates understanding for pensioners.

What working people need to know

It is important for working people to know that the size of the pension depends on the contributions paid and the length of the work experience. For example, retiring 5 years earlier can reduce it by 30%, while having 5 more years of work experience can increase it by 30%.

The Ministry of Social Policy is actively considering the possibility of increasing pensions in 2025, but this will depend on the financial state of the Pension Fund and current legislation. The pension system of Ukraine needs reforms, as it has numerous shortcomings that complicate pension receipt for citizens.