In Ukraine, pension indexation has once again raised questions due to various allowances. Some pensioners are getting their payments increased by thousands of hryvnias, while others are getting theirs increased by only 100 hryvnias. The reason lies in the calculation formula and different base indicators.
Pension indexation in Ukraine has been in effect since 2017 and is supposed to compensate for inflation, writes “On Pension”. It is calculated using a formula that takes into account:
50% increase in average salary
50% of the inflation rate
The resulting coefficient is not applied to the entire pension, but only to its basic part without supplements.
The main problem is different base indicators of the average salary. For pensioners who retired early, the formula uses a conditional “base” salary of about 9,992 hryvnias. For new pensioners, the current average salary for recent years, approximately 17,482 hryvnias.
This results in a difference in payments:
some pensioners receive full indexation (over 10%)
others receive only 2–2.4% or a minimum supplement of UAH 100
Lawyers explain: those who already have a “modernized” pension receive smaller allowances. Pensioners are advised to check the correctness of their payments.
What to do:
contact the Pension Fund for calculation details
check which average salary indicator was used
clarify data on experience and earnings
According to experts, errors in calculations can lead to a loss of hundreds or even thousands of hryvnias each month. The problem of different allowances is related to the indexation method determined by the government. It involves the use of different basic indicators for different categories of pensioners.
