Labor or insurance experience: Ukrainians clarified what really affects future pension

As reported by 'Hvylya', specialists of the Main Department of the Pension Fund (PFU) in Luhansk region explained to Ukrainians the important difference between labor and insurance experience.

Insurance experience and the pension system of Ukraine

In particular, insurance experience is a key component of the pension system in Ukraine. Until 2004, labor experience was significant for pension appointment, which included various periods such as work, education, military service, and parental leave.

Labor experience took into account not only the time worked but also other periods: education, military accounting, parental leave.

Insurance experience and legislation

Since 2004, the Law 'On Mandatory State Pension Insurance' has been in effect, which defines the concept of insurance experience. Individual contribution calculation became a significant change that allowed each employee to have their personal record.

Insurance experience is the period when a person is covered by insurance and pays insurance contributions monthly.

• Right to receive a pension;
• Amount of pension payments;
• Amount of sick leave;
• Amount of unemployment benefits;
• Preferential working conditions (for certain categories).

In the PFU, it was emphasized that until 2004, the labor book remained the main document for confirming experience. It is worth noting that since June 10, 2021, electronic accounting of employee labor activity has been introduced in Ukraine.

Pension experience combines labor experience before 2004 and insurance experience after that time. Currently, it is essentially synonymous with insurance experience, which is taken into account when appointing a pension.

Ukrainians were explained the important difference between labor and insurance experience in the context of the pension system. Before 2004, work activity was important, and after - the payment of insurance contributions. The presence of pension experience significantly affects the right to a pension and its amount.