Pension in Ukraine is calculated according to a complex formula that takes into account not only the number of years worked, but also other important factors. However, you can understand the general principles and make an approximate forecast.
How your pension is formed: what affects the size
Pension in Ukraine is determined according to a formula that takes into account three main elements:
The average salary in Ukraine for the last three years is the base value taken to calculate the pension. The official average salary, which is taken into account when calculating the pension, is calculated by the Pension Fund based on data. It is calculated monthly for 3 years, and then the average salary is displayed. If a person retires in 2025, data for 2022, 2023 and 2024 will be taken into account. This amount is multiplied by the individual earnings coefficient (Kz) and the length of service coefficient (Ks).
Individual earnings coefficient. This indicator reflects how much your salary differed from the average in the country throughout your entire work experience. The higher your official salary was, the higher this coefficient will be.
Insurance length coefficient. If you have 20 years of experience, this coefficient will be 0.20. This means that you will receive only 20% of the full calculated pension.
Practical calculation: examples based on real numbers
To better understand how the pension is calculated and what it depends on, let’s look at a few examples. Let’s say the average salary for calculating the pension is 15,000 hryvnias.
If your salary was at the average level, then your pension will be approximately 3,000 hryvnias. This amount is obtained by multiplying: 15,000 hryvnias × 1 (coefficient corresponding to the average salary) × 0.20 (coefficient of your length of service).
If you received a salary significantly higher than the average, say, 1.5 times, your pension will be larger: about 4,500 hryvnias (15,000 hryvnias × 1.5 × 0.20).
If your salary was lower than the average, for example, 0.7 of the average level, then the pension will be smaller, approximately 2,100 hryvnias (15,000 hryvnias × 0.7 × 0.20). It is important to understand that these are only approximate calculations. The real figures depend on the specific figures in your work history.
Why you will have to work longer for a pension with 20 years of experience
The presence of 20 years of experience affects not only the amount of payments, but also at what age you can retire. Ukrainian legislation establishes clear requirements for the length of service for each age of retirement. To retire at 60, you must have at least 32 years of experience. To retire at 63, you need to have 22 to 32 years of experience. With 20 years of experience, you can receive an old-age pension only from 65 years. It is for this age that you need to have 15 to 22 years of experience.
There is a guaranteed minimum pension in Ukraine. In 2025, its amount will be 2361 UAH. If, after calculation, your pension turns out to be less than this amount, the state will “pull” it up to the established minimum.
How to find out the exact amount of your pension
To get accurate information, it is best to contact the Pension Fund of Ukraine. You can visit their official website, using your personal account, or contact the branch directly. There you will find all the necessary information about your insurance experience and you can get an accurate forecast of future payments.
