Government Presents 2027 Budget Proposal to Parliament with Raises for Pensions and Minimum Wage

Overview of the 2027 National Budget Proposal

According to ХВИЛЯ: The Ukrainian government has submitted its draft budget for 2027 to the Verkhovna Rada, which includes planned increases in both the subsistence minimum and minimum pension payments. Specifically, minimum pensions are set to rise by 283 hryvnias, nearly an 11% increase. The minimum wage is also projected to increase, going from 8,647 to 9,546 hryvnias. Additionally, the draft allocates 50 million hryvnias to fund a cumulative pension scheme. It is important to note that the budget proposal has yet to receive approval from the Verkhovna Rada.

Adjustments to Social Benefits

For individuals who have lost their capacity to work, the subsistence minimum was 2,595 hryvnias in 2023 and is projected to rise to 2,878 hryvnias in 2027. Inflation for 2027 is forecasted to be just under 9%. The guaranteed minimum pension for those aged 65 and older with a full insurance record (35 years for men and 30 years for women) must not fall below 40% of the minimum wage. Disability pensions for groups one and two, as well as pensions for survivors, will increase to 2,878 hryvnias.

• Care supplements for elderly individuals living alone and aged over 80 will amount to 40% of the subsistence minimum: rising from 1,038 hryvnias in 2023 to 1,151 hryvnias in the draft budget.
• Assignment of care supplements requires approval from a medical advisory commission.
• Additional payments for extra years of service will approximate 1% of the subsistence minimum per year, potentially reaching 28.78 hryvnias annually by 2027.
• Age-related pension supplements will remain fixed: up to 300 hryvnias for ages 70-75, up to 456 hryvnias for 75-80, and up to 570 hryvnias after age 80.

Pension indexation is planned to begin in March 2027, although the exact percentage increase has not yet been determined. This figure is expected to be announced around February 2027. As noted by Irina Polyakova,

“I will not promise a specific figure and advise against trusting any forecasts before the official announcement.”

She also emphasized,

“At this stage, these are just initial steps without any detailed plans or guarantees.”

The overall subsistence minimum will increase from 3,209 to 3,559 hryvnias. Since housing subsidies are calculated using the subsistence minimum as a denominator, this increase will reduce the required percentage of payments for utilities. For example, a pensioner receiving 4,000 hryvnias currently pays 374 hryvnias for utilities, but under the 2027 proposal, this would drop to 337 hryvnias, assuming the pension remains the same.

In summary, the 2027 state budget draft proposes significant enhancements to social payments, although final details and figures await parliamentary approval.

This budget reflects the government's intention to improve social welfare, particularly for vulnerable groups such as pensioners and people with disabilities. However, the implementation depends on the Verkhovna Rada’s endorsement, highlighting the critical role of political support in realizing these planned reforms. This process may also affect the stability of social payments moving forward, given inflation forecasts and economic growth projections. Accordingly, the proposal is likely to serve as a foundation for ongoing discussions about the country’s social policy.

As the government outlines its budget proposal for 2027, significant changes to the minimum wage are also on the horizon. The planned increase of 899 UAH is expected to impact many households across the country. For further details on this adjustment and its implications for Ukrainian citizens, you can read more about the upcoming wage changes here.