The pension indexation mechanism, which will be held annually and automatically starting March 2019, was elaborated and planned in October 2017 - since the adoption of a package of draft laws on a pension reform. This was stated by Prime Minister of Ukraine Volodymyr Groysman during the Government sitting.
The PM stressed that pension provision is a key issue in the social justice policy pursued by the Government. According to him, benefit from the growth of the economy should be obtained by every citizen - a child, and an elderly person, and a middle class represented by teachers, doctors, specialists and workers, all of whom in synergy are forming the "strength of our state".
"Starting March 1, we begin the automatic recalculation of pensions. We have a clear formula based on a 50% increase in average salary and 50% inflation. Such a formula was elaborated back in October 2017", said Volodymyr Groysman. "Moreover, we reiterated that those citizens assigned a minimum pension should receive higher support. And last fall, President of Ukraine Petro Poroshenko came out with the initiative to provide extra revenues from customs clearance of cars with European registration numbers to transfer for an additional payment (for pensioners). The Pension Fund has obtained an opportunity to allow such additional payment."
The Head of Government drew attention to the fact that indexation of pensions is a systemic step planned "not on the eve of the ballot." Similar step, at one time, was an increase in the minimum wage, which tripled in three years, and an increase in the average wage.
"And now we know exactly what to do to make wages growing and pensions indexed."
Due to the Government Reform of the Pension System, in October 2017, about 10 million pensioners received an increased pension depending on a number of factors - including the dangerous working conditions and seniority. In 2018, military pensioners received an increase in pensions. The second wave of improvement was made by the Government in January 2019.