This was stated by the Minister of Social Policy, Oksana Zholnovich, during a press conference.
According to the minister, the pension system will soon become more transparent and fairer. The previous practice, where certain categories received disproportionately high pensions while the majority of retirees survived on minimal payouts, is said to have been discontinued.
Currently, pensions for most Ukrainians (excluding judges, prosecutors, and other special categories) are determined by the following formula:
Pension = years of service × 1% × average salary in the country over the last three years × ratio of personal salary to the national average.
However, this system has significant drawbacks:
The three-year average salary used for calculations often underestimates the pension amounts.
Inflation and rising wages widen the income gap between working citizens and retirees.
It is noted that under the proposed system, the calculation of pensions will consist of two main components:
The basic pension — equal to 30% of the minimum wage after tax deductions (currently 6160 UAH). By 2025, it will amount to 1848 UAH.
The insurance pension — calculated as the number of earned points × 30% × average salary from the previous year ÷ 4200.
If a person has 35 years of service and the average salary, their pension under the new system would be:
4292 UAH (insurance pension), 1848 UAH (basic pension), totaling: 6140 UAH.
For comparison, under the current system, this amount would be only 4745 UAH.
Although the new formula promises higher pensions, its implementation depends on the financial capabilities of the state, emphasized Minister Zholnovich. The reform aims to make pensions fairer and more sustainable, but its success will rely on economic stability and state resources.