Pensions and insurance payments for Ukrainians increased by 12.1%: what will change from March 1
26 February 05:21
The government has decided to index pensions and insurance payments by 12.1% from March 1, 2026. The specified increase coefficient exceeds the inflation rate for 2025, which was 8%. This was announced by Prime Minister Yulia Svyrydenko, according to "Komersant Ukrainian".
After the recalculation, pensions will increase by at least UAH 100 and no more than UAH 2,595.
“This increase exceeds the inflation rate for the past year and will help maintain people’s income levels amid rising prices. The government is also continuing the practice of indexing pensions awarded during 2021-2025. This restores fairness for those pensioners whose payments were not previously subject to indexation,” Svyrydenko emphasized.
Denys Ulyutin, Minister of Social Policy, Family, and Unity of Ukraine, stressed that indexation is a mandatory mechanism for protecting pensioners’ incomes from devaluation.
“Pension indexation in Ukraine is a mandatory mechanism that allows pensions to be partially protected from inflation. The decision is based on a clear formula and ensures a transparent recalculation of payments,” the minister said.
How 12.1% was calculated
The indexation coefficient is determined by a formula enshrined in legislation:
- 50% — inflation rate for 2025 (8%);
- 50% — average salary growth over three years (16.1%).
As a result, the indexation coefficient was 12.1%.
About pension indexation
Pension indexation is provided for by the Law “On Compulsory State Pension Insurance,” which came into force in 2004. In 2014–2016, due to the difficult financial and economic situation, indexation was not carried out.
In 2017, after the pension reform, the indexation rule was reinstated. Since 2019, the recalculation has been carried out by decision of the government, taking into account the growth rate of consumer prices and average wages.
In previous years, pension indexation was as follows:
- 2021 — 11%,
- 2022 — 14%,
- 2023 — 19.7%,
- 2024 — 7.96%,
- 2025 — 11.5%.
Pensions will be recalculated automatically and will cover almost all major types of payments — old-age pensions, military pensions, disability pensions, pensions for the loss of a breadwinner, as well as special pensions for former local government employees, civil servants, and scientists.
Minimum pensions for persons with disabilities due to war, combatants, and insurance payments to citizens who have suffered from accidents have also been indexed. From April 1, working pensioners will automatically have their pensions recalculated taking into account their updated length of service and earnings.
Who will receive an increase
The pension increase will affect most categories:
- pensioners in the general system;
- military pensioners;
- persons with disabilities as a result of the Chernobyl disaster;
- recipients of pensions for special merits;
- former local government employees;
- victims of industrial accidents.
New minimum pension amounts
For pensioners aged 80 (with the required length of service)
- from UAH 3,758 to UAH 4,213.
For persons aged 70 with full length of service
- from UAH 3,613 to UAH 4,050.
For persons under 70 with full length of service
- from UAH 3,323 to UAH 3,725.
For pensioners with less seniority
- from UAH 3,038 to UAH 3,406.
Minimum payments for persons with disabilities resulting from war and combatants will also be indexed.
What else will change in 2026
- The indexation of pensions assigned in 2021–2025, which were not previously subject to recalculation, will continue.
- From April 1, 2026, working pensioners will automatically have their payments recalculated to take into account additional experience or earnings.
All payments will be made within the budget of the Pension Fund of Ukraine for 2026.
At the same time, pensions set at the subsistence level or at the maximum amount (10 subsistence levels) will not be indexed, as they have already been revised as of January 1, 2026, following an increase in the subsistence level.
What this means for pensioners
The government’s decision will partially offset price increases and support the purchasing power of citizens in difficult economic conditions.
The largest increase will be felt by older pensioners and people with full insurance experience.
