Indexation in March will concern the smallest pensions for the first time: how much will payments increase

Indexation in March will concern the smallest pensions for the first time: how much will payments increase

Ukrainians with the smallest pensions will receive an almost 20% increase in payments in March – for this category of pensioners, indexation will be carried out for the first time.

It is reported press service of the Ministry of Social Policy.

“In 2023, the lowest pensions will be indexed for the first time. Previously, such pensions were not subject to indexation and were reviewed exclusively together with the increase in the living wage (which grows at a slower rate than indexation). The inclusion of such payments in the indexation perimeter allows for the growth of the smallest pensions.” – the message says.

The amount of indexation of pensions from March 1, 2023 will be 19.7%, and the increase in the amount of pensions will take place for 10.5 million pensioners.

In particular, from March, pensions will be indexed for:

  • 5.2 million “civilian” pensioners – for them, the increase in pension will be carried out through indexation by 19.7% of the average salary indicator, from which the pension is calculated.
  • 4.2 million people, whose pensions will increase due to the 19.7% increase in the fixed amount of minimum pension payments. For the first time, such a state-guaranteed minimum pension amount will be indexed. For such pensions, the increase will be from UAH 420 to UAH 520 (compared to the amount of pensions established on March 1, 2022).
  • 0.5 million pensioners of law enforcement agencies, for whom the entire amount of the pension will be indexed by 19.7%.
  • 94,500 people who receive a disability pension that occurred as a result of mutilation or illness as a result of the Chernobyl disaster.

Also, monthly compensations will be paid for pensioners over 70 years of age, which are established if the pension of such pensioners does not reach UAH 10,340:

  • UAH 570 – for people over 80 years old;
  • UAH 456 – for people aged 75-80 years;
  • UAH 300 – for people aged 70-75 years.

In addition, monthly insurance payments will be indexed by 19.7% for 166.5 thousand victims and persons entitled to monthly insurance payments in the event of the victim’s death.

In a month, from April 1, pensions will be automatically recalculated for 0.6 million working pensioners, taking into account the updated (increased) insurance experience. From July 1, pensions will be indexed by 19.7%, special pensions for 22.7 thousand scientists, civil servants, employees of local self-government bodies.

“According to any calculations, the increase in pensions will amount to no less than 100 hryvnias,” the Ministry of Social Policy stressed.

Another 0.5 million pension recipients, to whom pensions were assigned in 2020-2022, will receive an increase of 100 hryvnias.

“The pensions themselves will NOT be indexed for them, as they already receive a much higher pension than those citizens who have the same length of service, the ratio of their salary to the average salary in the country, but who retired in previous years,” explained the the ministry

“The direction identified by the Government as key for the implementation of indexation is the support of the most vulnerable categories of citizens. It is fair to ensure indexation of incomes, first of all, to citizens who receive the smallest payments. After all, during the war, those who cannot work and for whom a pension should be left without social protection is the only source of income – irresponsibly,” commented Minister of Social Policy Oksana Zholnovich.

At the same time, the government introduced temporary restrictions on the maximum amount of indexation of pensions. The size of the pension increase based on the results of indexation will be limited to UAH 1.5 thousand for all recipients of pensions and insurance payments, regardless of category.

Economic truth

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