“The Cabinet of Ministers of Ukraine intends to increase minimum pensions and index payments in 2026. To date, according to statistics, more than 10 million pensioners, whose average pension is about 6.5 thousand hryvnias, do not reach the actual subsistence minimum, as a result of which many Ukrainians live beyond the real level of security, writes RBC-Ukraine. This is critically important because”, — write on: ua.news
The Cabinet of Ministers of Ukraine intends to increase minimum pensions and index payments in 2026.
To date, according to statistics, more than 10 million pensioners, whose average pension is about 6.5 thousand hryvnias, do not reach the actual subsistence minimum, as a result of which many Ukrainians live beyond the real level of security, writes RBC-Ukraine .
This is critical because inflation often outpaces pension increases, creating additional economic hardship for older people.
In 2026, the pension should increase by 234 hryvnias, and the indexation is planned for March, after the announcement of data on inflation and the average salary for 2025.
In particular, the Minister of Finance announced the allocation of 1,027 billion hryvnias for pensions, which is 19% of all state budget expenditures.
However, there are questions about the fairness of the pension payment system, because the appropriate amount of pensions is also affected by untaxed income and a high level of the shadow economy.
The size of the average pension in Ukraine, which is approximately 133 euros, is one of the lowest indicators in Europedata from the Opendatabot resource show.
For comparison, pensioners in Albania receive about 160 euros, in Romania and Bulgaria – from 450 to 550 euros, in Poland and the Czech Republic – from 800 to 900 euros.
One of the reasons for this imbalance is insufficient income to the Pension Fund due to high level of shadow economy – about 40%. Every year, Ukraine does not receive about 1 trillion hryvnias in tax revenues, of which over 350 billion are unpaid contributions to the wage fund, explains Oleg Pendzyn, economist, head of the Economic Discussion Club.
“When a person formally receives a minimum of 8 thousand hryvnias, despite the fact that he actually receives 30-40 thousand hryvnias. That is, she has insurance experience, she will then have the right to receive a pension, but this pension will be minimal,” said the economist.
The amount of payment of the single social contribution (EUS) is – another problem, believes Oleg Popenko, head of the Union of Utilities Consumers of Ukraine.
In Ukraine, everyone pays social security tax, but only from incomes up to 100,000 hryvnias per month. That is, even if a person earns millions, he pays contributions only from this amount. As a result, the system remains unequal and unfair, the expert explains.
How the minimum pension will change in 2026
IN According to the project of the state budget of Ukraine in 2026, it is planned to allocate 1,027 billion hryvnias for pensions, which is 123 billion hryvnias more than in 2025. This is about 19% of all state budget expenditures – the largest social item of expenditures.
Minimum pension next year will increase by 234 hryvnias – from 2,361 to 2,595 hryvnias or 9%. For comparison, pensions were raised by 14% in 2022, by almost 20% in 2023, by only 8% in 2024, and by 11.5% in 2025.
If the parliament approves the budget for next year in the current version, then the minimum pension should increase from January 1, 2026 or from the date specified in the law.
How pensions will be indexed
In 2026, the government plans to index pension payments from March 1. The size of the indexation is different every year, it is determined by the Cabinet of Ministers. In 2025, the amount of indexation was 11.5%.
Indexation of pensions is carried out in accordance with the law “On mandatory state pension insurance” at the expense of the Pension Fund, Oleg Pendzyn explains.
The state budget foresees only payments for certain categories of pensioners who receive support from the budget – these are, in particular, military personnel, judges, prosecutors and civil servants.
Old-age pensions are financed from monthly contributions paid by working citizens in the form of a single social contribution. It is these revenues that form the main source of payments to pensioners.
According to the law, indexation of pensions must take place according to the formula: 50% of the average wage increase plus 50% of the inflation rate.
To determine the amount of indexation in 2026, it is necessary to wait for official data on inflation and average wages for 2025. These indicators are published at the end of January next year, and indexing is traditionally carried out from March 1after calculations by the Pension Fund, explains Pendzyn.
The economist also noted that the final amount of the increase will depend not only on the formula, but also on the availability of funds in the Pension Fund. If there is not enough money, the government can pass separate resolutions, as it already happened in 2023, when indexing was restricted during martial law.
Indexation of pensions should take into account both salary growth and inflation. As of October, inflation is almost 12% (NBU data), and wages are growing by more than 20%. In such conditions, the need for pension expenses only increases.
At the same time, in 2026, the government plans to raise the living wage by 9.9%, taking into account inflation. However, this indicator was not revised throughout 2025, so this growth does not compensate for the loss of purchasing power, explains Danylo Hetmantsev, head of the parliamentary committee on finance, tax and customs policy.
For example, if now you can buy 40 kg of buckwheat for 2,361 hryvnias (approximately 59 hryvnias per kilogram), then after an increase to 2,595 hryvnias and a 14% increase in prices it will be possible to buy only 38 kg of cereals.
The government also plans to increase the living wage by 9.9%, but this increase will not be able to fully compensate for the loss of purchasing power.
So, despite plans to increase social benefits, people’s real incomes remain at risk due to the mismatch between price and wage growth.
The issue of further social security for the elderly in Ukraine remains open and requires detailed analysis.
