Ukraine to introduce inflation-indexed state pensions in 2024 – PM Shmyhal
Business22 September 2023, 11:40 PM
The Ukrainian government is planning a
pension reform in 2024, aiming to ensure state
pensions are at least 30% of median wages a given retiree received
throughout their working years, Ukrainian PM Denys Shmyhal said in a Telegram
post on Sept. 22.
On top of the guaranteed 30% of average lifetime salary, with the accumulated component added, most pensions should be at least 50% of median wage.
Additionally, state pensions will be indexed from March 1, 2024, making sure they keep up with inflation.
Shmyhal explained that the contributions working Ukrainians make to the Pension Fund each month will be scored, taking into account the relationship between a person's salary and the average salary in Ukraine at that time.
"By doing so, we are creating a solidarity pension system, safeguarded from inflation and devaluation," Shmyhal concluded.