Cabinet decides to index pensions from March by 11.5%

The Cabinet of Ministers has decided to index pensions from March by 11.5%.

Prime Minister Denys Shmyhal announced this on the Telegram channel, the Ukrainian News agency reports.

"From March 1, we are indexing pensions. For more than 10 million citizens, pensions will increase by 11.5%. The minimum amount of pension increase will be at least UAH 100. And in order to fairly distribute financial resources and increase the smallest pensions, we are introducing the maximum amount of indexation - up to UAH 1,500," he said.

According to the Ministry of Social Policy, from March 1, pensions will be indexed for:

- 9.2 million pensioners who are assigned a pension on general grounds;

- 672,000 pensioners of law enforcement agencies;

- 98,000 persons receiving disability pensions and in case of loss of breadwinner - as a result of the Chornobyl disaster;

- 79,600 pensioners - persons with disabilities as a result of war and combatants who receive minimum pension payments;

- 23,400 pensioners - former employees of local government bodies and civil servants.

According to the Minister of Social Policy Oksana Zholnovych, the average forecast level of pension growth after indexation will be UAH 556, the size of the average pension in Ukraine will increase from UAH 5,789 to UAH 6,345.

The Ministry of Social Policy also reports that on April 1, an automatic recalculation of pensions will take place for 629,000 working pensioners (taking into account their updated insurance experience).

As the Ukrainian News agency earlier reported, according to the State Statistics Service, in 2024 consumer prices increased by 12%.

In 2024, the Cabinet of Ministers decided to index pensions from March by 8% with inflation in 2023 at 5.1%.

Indexation is a mechanism for increasing the amount of payments from the state, which makes it possible to fully or partially compensate for the increase in the price of consumer goods and services over the past year.