PFU to Conduct Large-scale Pension Indexation: What to Expect.


Pensioners promised 17% pension indexation
The Government of Ukraine plans to conduct pension indexation in 2025, which will lead to an increase in payments by almost 17%. This is reported by the Radiotrek website.
The increase in pensions will consist of half of the annual inflation and half of the wage growth over the last three years.
This will apply to the base pension without bonuses.
The maximum amount of payment increase is limited to 1,500 UAH.
Experts indicate that the indexation itself does not solve the issue of the gap between pensions for new and old pensioners.
Considering that pensions are calculated based on the average salary for the previous three years, systemic changes in the pension system are needed:
To address this issue, a comprehensive pension reform is planned, but details are not yet disclosed.
Although the pension indexation in 2025 will be noticeable for many pensioners, it will not change the poverty situation among the elderly. For this, deep changes in the pension system are needed, which are currently only being discussed.
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