500 UAH for one, 100 for the other: a lawyer explains the confusion over pension indexation
23 April 20:17
Pension indexation in Ukraine remains complex and confusing for most citizens. This is precisely why situations arise where one pensioner receives an increase of 500 hryvnias, while another gets only 100. Lawyer Ivan Khomych spoke about this in an interview with the YouTube channel "Komersant Ukrainian".
“The issue of indexation is very confusing, just like the entire pension system in Ukraine. People often come to us saying: my neighbor’s pension was raised by 500 hryvnias, but mine by only 100. Why? And it’s simply not always possible to explain this,” he notes.
According to the expert, the current indexation mechanism has been in place since 2019 and provides for a different approach to “old” and “new” payments.
“This mechanism is unfair in that it excludes from indexation those pensioners who retired within the last 4–5 years,” he explains.
Khomych explains: the state primarily increases pensions for those who retired before 2017–2018, as their payments are considered outdated.
“People who retired before 2017 have significantly lower pensions. Sometimes the difference reaches 70% even with the same length of service. That is why the government is directing funds specifically toward their indexation,” Khomych said.
In contrast, for “new” retirees, indexation was effectively replaced for a long time by symbolic supplements.
“Starting in 2023, they added 100–135 hryvnias instead of full indexation. While old pensions received a 14–20% increase, new ones could only get 100 hryvnias,” the lawyer recalls.
The situation changed somewhat following a 2025 Supreme Court ruling, which opened the possibility of challenging unpaid benefits.
“Every pensioner has the option to sue in court to claim indexation for past years. People can increase their pension by 50–60%,” he said.
At the same time, even after the changes, the system remains confusing: increases are often “eaten up” by previous surcharges.
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“In 2026, people received a partial indexation, but the 300 hryvnias that had been paid out earlier were taken away. As a result, a person sees a plus of 100 hryvnias again and doesn’t understand what’s happening,” says Khomych.
The lawyer emphasizes: the current approach is difficult to understand and needs to be simplified.
“We’ve always said: make the indexation such that every person can calculate their pension on a calculator. Not like it is now—everything is so complicated that it’s hard to figure out,” he added.
Separately, Khomych clarified that not all payments are subject to indexation.
“Pensions awarded this year, social benefits for those with insufficient service, and maximum pensions are not indexed. All others are indexed by at least 100 hryvnias,” he said.
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