The Cabinet of Ministers of Ukraine has approved a draft law that introduces significant changes to the pension system. The document aims to guarantee the preservation of the minimum amount of pension payments after any deductions from the pension and to implement an annual automatic adjustment of pensions for certain categories of citizens.
This is reported by Finway
Annual Indexation and New Adjustment Mechanism
According to the draft law, pensions awarded under Article 37 of the Law of Ukraine “On Civil Service” will be subject to annual indexation. The adjustment will take place on March 1 of each year, taking into account the dynamics of population income and the consumer price index. The coefficient for indexation will be determined according to the requirements of Article 42 of the Law “On Mandatory State Pension Insurance.”
The updated pension calculation mechanism is designed to make the process stable and transparent for both current pensioners and individuals currently serving in the military who will be eligible for pension payments in the future. The document also clarifies the procedure for amending legislation that regulates pension provision.
Protection of Minimum Pension Payment and Other Changes
The draft law provides for the regulation of the procedure for collecting funds from the debtor’s pension. If the pension amount exceeds the subsistence minimum for persons who have lost their ability to work, after deductions, the payment cannot be less than this minimum. This is intended to strengthen the social protection of pensioners who find themselves in difficult financial circumstances.
The Cabinet of Ministers approved the draft Law “On Amendments to Certain Laws of Ukraine Regarding the Preservation of the Minimum Pension Payment After Deductions from the Pension, Indexation of Pensions for Certain Categories of Persons.”
It should be noted that the next pension indexation in Ukraine took place on March 1 of this year. The minimum increase was 100 hryvnias, while the maximum indexation reached 1500 hryvnias. The average increase after indexation was 556 UAH, and the average pension rose from 5789 UAH to 6345 UAH.