The government has finalized the pension indexation amount for Ukrainians this year.

The Ministry of Social Policy has prepared a draft budget for the Pension Fund of Ukraine for 2025. An indexation is planned to be carried out with a coefficient of 1.10.

This is reported by RBK-Ukraine citing the draft government resolution posted on the FPU website.

"The recalculation of pensions/monthly insurance payments is taken into account for 2025 due to the indexation of pension and social payments using a coefficient of 1.10 starting from 01.03.2025," the explanatory note to the draft states.

In the budget of the Pension Fund of Ukraine for supplements, defined by the resolutions of the Cabinet of Ministers of Ukraine on the indexation of pension payments and additional measures to enhance the social protection of the most vulnerable groups of the population, 44.7 billion hryvnias is allocated.

Income and Expenses of the Pension Fund

The total income in the draft budget of the Pension Fund of Ukraine for 2025 is set at 904.8 billion hryvnias, taking into account the remaining funds at the beginning of the year - 910.2 billion hryvnias.

The calculations are based on reporting data regarding the number of recipients and the amount of payments considering the minimum subsistence level for persons who have lost their ability to work (2,361 UAH) and the minimum wage (8,000 UAH).

Information from automated databases for processing pension documentation (electronic pension files), the Main Forecast Macroeconomic Indicators of Economic and Social Development of Ukraine for 2025-2027, and projected contributions of the Unified Social Contribution (USC) amounting to 589.9 billion hryvnias (including additional USC receipts due to the change in the maximum amount of the USC base from 15 to 20 times the minimum wage and the cancellation of benefits for the calculation and payment of USC for individual entrepreneurs) for 2025 are also considered.

The total amount of expenses in the draft budget of the Pension Fund of Ukraine for 2025 is set at 908.2 billion hryvnias.

"The draft budget of the Pension Fund for 2025 is balanced in terms of revenues and expenditures for mandatory state pension insurance and pension provision," the statement says.

Pensions in 2025

As a reminder, The Pension Fund of Ukraine has begun financing pensions for January 2025. However, there will be no pension increases starting January 1, as social expenditures in the state budget for 2025 are frozen. This applies to both the minimum pension and the minimum wage, from which pensions for certain categories depend.

Pension increases are expected from March 1, when a scheduled indexation will take place. The pension is indexed by a coefficient that takes into account 50% of the average salary growth over the past three years and 50% inflation from the previous year.

Last year, the coefficient was 1.079. This does not mean that all pensions were increased by 7.9%. During the indexation, the average pension increased by 358 hryvnias or by 6.7% to 5,743 hryvnias. For those who retired in the last three years, the increase was 100 hryvnias.