The government is postponing the pension increase indefinitely

The anticipated rise in pensions from January 1st might not happen as expected due to a shift to a later date as outlined in the final clauses of the 2024 budget. The stipulations state that the planned pension hike will now take effect from March 1st, coinciding with pension indexing.

From January 1st, 2024, there will be an increase in the subsistence minimum across all age groups in Ukraine, including pensioners. Consequently, the maximum and minimum pensions, directly linked to this minimum (where the minimum pension equals one subsistence minimum and the maximum equals ten), were supposed to automatically increase. However, clause 8 of the final provisions of the 2024 budget specifies a different effective date. The budget law states, “The recalculation of pensions, allowances, increases, and other pension supplements, taking into account the subsistence minimum for disabled persons established by law as of January 1, 2024, shall be carried out from March 1, 2024, together with the annual indexation of pensions.”

This implies that the maximum and minimum pension increase will not occur from January 1st but from March 1st, 2024, aligning with the indexing of payments for other pensioners. However, some pensioners might still see higher payments from January 1st, notably individuals above 65 years with a complete work history (women with over 30 years and men with over 35 years of service). According to the law, their pensions cannot fall below 40% of the minimum wage. With the minimum wage set to increase from January 1st, the minimum pensions for this specific group of citizens are expected to rise accordingly.