Starting from March 1, 2026, there will be a large-scale indexing of pension payments in Ukraine. As reported by the Minister of Social Policy, Family, and Unity of Ukraine, Denys Uliutin, during his speech in the Verkhovna Rada, the increase will be 12.1% for all retirees receiving payments through the Pension Fund of Ukraine.
This is reported by Finway
Features of Indexing and Financial Stability
According to Denys Uliutin, the new level of indexing exceeds the inflation index for the past year by 4%, which will help partially compensate for rising prices and support the purchasing power of elderly citizens. The indexing will cover all pension recipients from the Pension Fund, without exceptions.
“From March 1, we will conduct an indexing of 12.1%. This is 4% more than the inflation index recorded for the previous year. And this indexing applies fully to all retirees who receive pensions directly from the Pension Fund,” the Minister noted.
The Minister emphasized that the stability of the pension system has become possible thanks to the approved and balanced budget of the Pension Fund for 2026, the first in many years. The budget exceeds 1.2 trillion hryvnias, allowing for the planning of payments for over 10 million Ukrainians without the risk of deficit.
Prospects for the Pension System and Next Steps
Despite the indexing, the average pension in 2026 will be around 6,500 hryvnias. However, a significant portion of retirees will receive payments below this amount: according to the minister, over 4.3 million citizens receive pensions below 6,000 hryvnias. The Ministry views indexing as just one element of broader reforms in the pension system, as the current level of provision cannot be considered sufficient for a decent life.
Denys Uliutin also reported that the department has completed work on a new model of the pension system and is preparing to submit a draft law to parliament aimed at ensuring long-term financial stability and fairness in payments for all generations of Ukrainians.