Pension reform in Ukraine may be implemented as early as next year. At least, such plans are laid down in the draft budget. Find out if this means that pension payments will increase

Legal advice for Ukrainians

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Ukraine plans to implement pension reform in 2025. This is stated in the draft law on the state budget for the next year. 

What does the state budget say?

According to clause 31, the Cabinet of Ministers must ‘take measures to implement pension reform from 1 July 2025’.

Also, the Cabinet of Ministers must develop and submit to the Verkhovna Rada draft amendments to laws by 1 July 2025 to establish uniform approaches to recalculating pensions for people whose pensions are granted under ‘special’ laws, regardless of changes in wages (income)/monetary benefits, and to index pensions for such people on general terms.

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What is the essence of the new pension reform?

Earlier, the Ministry of Social Policy prepared a draft law on pension reform. The document proposes to introduce mandatory payments to state or non-state pension funds for both employees and employers.

Thus, the mandatory accumulation contribution for employees will be 1% of the accumulation contribution base during the first year from the date of commencement of payment of accumulation contributions to the mandatory accumulation system, 2% during the second year, and 3% during the third and subsequent years.

At the same time, the mandatory accumulation contribution for employers is 1% of the accumulation contribution base during the first year, 2% during the second year, and 3% during the third and subsequent years.

The draft law proposes to reduce the rate of the Unified Social Contribution for obligatory state social insurance from 22% to 17% in the first year of the system's implementation, to 16% in the second year, and to 15% in the third year and subsequent years.

Should I wait for pension indexation?

According to the Cabinet of Ministers resolution “On Approval of the Budget Declaration for 2025-2027”, there will be no increase in the amount of pensions next year. The government has decided to freeze this figure.

It is likely that the next indexation of payments will be made in 2028.

We remind you! Ukrainians can calculate their future pension payments on their own. To do this, you need to get online help through Diia and understand how payments are calculated in the country.