Pension in Ukraine: how it will change from January 1

Pension in Ukraine: how it will change from January 1

By July 1, 2025, the Cabinet of Ministers of Ukraine is obliged to create and submit to the Verkhovna Rada a draft law that will establish a clear mechanism for recalculating special pensions.

From 2025, certain categories of Ukrainian citizens will start receiving reduced pension payments. This is due to the optimization of state expenditures provided for in the budget of Ukraine for the next year.

Who will have their pensions reduced

The reduction in payments will affect recipients of so-called special pensions:

• former and current judges,

• prosecutors,

• law enforcement personnel.

The decision was made due to significant expenses on these pensions. In 2023, almost 100 billion hryvnias were allocated for them, and in 2024 the amount could reach 120 billion, which accounts for a quarter of the social welfare budget.

What changes are planned

1. Eliminate the link to salaries: it is planned to remove the link of special pensions to salary or monetary allowance increases.

2. Indexation on a general basis: instead of current conditions, pensions will be indexed in the same way as for ordinary citizens.

3. Limit on maximum amount: it is proposed to set a cap of 10 subsistence minimums for citizens unable to work (currently, this is 23,610 hryvnias).

What’s next

By July 1, 2025, the Cabinet of Ministers of Ukraine must develop and submit to the Verkhovna Rada a draft law that will establish a clear mechanism for recalculating special pensions.

These changes are aimed at reducing budget expenditures and achieving a fairer distribution of social payments.