Cabinet limits indexation of pensions to UAH 1,500

The Cabinet of Ministers limited the indexation of pensions to UAH 1,500.

This is stated in the message of the Ministry of Social Policy, Ukrainian News Agency reports.

"The government has introduced temporary restrictions on the maximum amount of indexation of pensions. The amount of pension increases based on the results of indexation will be limited to UAH 1,500 for all recipients of pensions and insurance benefits, regardless of category. Such a restriction will allow a more equitable distribution of available financial resources for indexation and to ensure an increase in pensions for citizens who receive the smallest payments," the message reads.

At the same time, it is noted that according to any calculations, the increase in pensions will amount to no less than UAH 100.

The Ministry of Social Policy reports that from March 1, according to the government's decision, pensions will increase by 8% for more than 10 million citizens.

The Ministry explains that the amount of indexation is calculated on the basis of the final official indicators of economic development in 2023: inflation in the amount of 5.1%; an increase in the average salary from which insurance premiums were paid - 7%.

The Ministry of Social Policy emphasizes that the increase in pensions will cover the increase in prices for 2023.

The Ministry also emphasizes that during a full-scale war, the government not only conducts indexation, but also expands its perimeter.

Thus, in 2024, the lowest pensions will be indexed for the second time in a row.

The average forecast level of pension growth after indexation is UAH 322, the size of the average pension in Ukraine will increase from UAH 5,395 to UAH 5,717.

According to the adopted resolution, from March 1, pensions will be indexed for:

9.5 million "civilian" pensioners to whom a pension is assigned on general grounds;

596,000 pensioners of law enforcement agencies;

97,800 people who receive a disability pension that occurred as a result of mutilation or illness as a result of the Chornobyl disaster.

In addition, starting March 1, monthly insurance payments will be indexed for 161,400 victims and persons entitled to monthly insurance payments in the event of the victim's death.

From March 1, the pension of 20,800 scientists, civil servants, and employees of local self-government bodies will also be indexed by 8% (in 2023, indexation for them took place from July 1).

From April 1, pensions will be automatically recalculated for 654,000 working pensioners (taking into account their updated insurance experience).

As Ukrainian News Agency earlier reported, the Cabinet of Ministers decided to index pensions by 8% from March 1. In January, the Ministry of Social Policy forecast indexation of pensions by 13% in March.