Pensions for Ukrainians will be increased from July 1, but not for everyone

In Ukraine, from July 1, the minimum pension will be raised from UAH 1,934 to UAH 2,027, and the maximum pension to UAH 20,270. Those Ukrainians who still receive the maximum payments can count on the biggest increase, writes Obozrevatel.

The raise will be as follows:

• minimum pension - from UAH 1,934 to UAH 2,027;
• maximum pension - from UAH 19,340 to UAH 20,270;
• allowance for excess service – from UAH 19.34 to UAH 20.27 per year.

That is, if in June, you received a pension in the amount of UAH 1,934 (for example, you did not have enough work experience), then after July 1 you can count on UAH 2,027. As always, "wealthy" pensioners are more fortunate. For them, the increase will be already UAH 930.

The indexation of pensions is provided for by both the country's budget and the budget of the Pension Fund. But they were calculated without taking into account a full-scale war, which actually deprived the budget of the lion's share of revenues.

The Ministry of Social Policy explained: no one canceled the indexation, it should happen, but no one can answer whether there is enough money for it. “The March increase was also carried out during the war, there will definitely be a recalculation,” the ministry explained.

And before the full-scale war, the situation with filling the budget of the Pension Fund was critical. The government itself is partly to blame: the shadow economy flourished, salaries were paid in envelopes, the number of individual entrepreneurs grew, but incomes to PFCs decreased.

The current pension system in Ukraine is in critical need of reform, and the war has only exacerbated all the problems. In fact, there is no money, and the budget has to be financed with assistance of international partners.

As Ukrainian News Agency earlier reported, since March 1, pensions have been indexed by 14% for 10.7 million pensioners, on average, they have increased by UAH 380.

Since April 1, pensions for working pensioners have been recalculated, as a result of which the pensions of 595,000 pensioners have been increased by an average of UAH 168.

In June, another stage of pension increase will take place in Ukraine. The Pension Fund of Ukraine will conduct a planned recalculation of pensions for working pensioners.

Also, the Ministry of Finance once again announced the verification of all recipients of social benefits. The payment can either simply be stopped or forced to be returned to the budget. It all depends on the specific law or regulation according to which the funds are allocated.

Meanwhile, until the end of 2022, three stages of pension increases are envisaged.

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