On March 1, 2021, the automatic recalculation of pensions for persons receiving pensions granted in accordance with the laws of Ukraine "On compulsory state pension insurance", "On pensions provision of persons discharged from military service and certain other persons" (from among army conscript), "On the status and social protection of citizens affected by the Chernobyl disaster."

As a result of the implementation of Resolution №127, pensions are expected to increase for 8 million people. The average amount of increase for persons whose pensions are subject to recalculation is UAH 308.

If after recalculation the size of pension increases, then such increase cannot be less than UAH 100.

The minimum pension payment has been upped from UAH 2,100 to UAH 2,200 for pensioners with insurance experience lasting: 30 years for women and 35 years for men.

Background

Resolution of the Cabinet of Ministers of Ukraine dated 22.02.2019 №127 approved the procedure for indexation to the coefficient of increase of the average salary (income) in Ukraine, from which insurance premiums are paid, and which is taken into account for calculating the pension in the amount of 1.11.

The indicator is determined in accordance with the second part of Article 42 of the Law of Ukraine "On Compulsory State Pension Insurance" at a level corresponding to 50 percent of consumer price growth in 2020 and 50 percent of average wage growth, from which insurance premiums were paid, for the last three years (5*50% + 17*50%). If we take into account that last year the average salary from which insurance premiums were paid increased by 12.3%, we have a fairly high percentage of pension growth.