Pension Indexation in Ukraine
Pension indexation in Ukraine in 2024 is planned for March 1. The approximate indexation rate will be 13%, but exact figures will be determined in February based on relevant statistical data.
Debate Among Economists
There is no consensus among economists on the necessity of indexation. Some believe that the increase in social benefits is necessary to stimulate consumer demand, while others warn of possible negative consequences.
Legal Basis for Indexation
Pension indexation is provided for in Article 42 of the Law on Compulsory State Pension Insurance. According to the law, to ensure indexation of pensions every year from March 1, a recalculation of previously assigned pensions is carried out by increasing the indicator of average wages (income) in Ukraine used to calculate pensions. The average wage indicator in Ukraine is increased by a coefficient that is 50% of the growth in consumer prices in the previous year and 50% of the growth in average wages over the three calendar years preceding the year of increase.
