Ministry of Social Policy has refuted information regarding the taxation of pensions

This was reported by the press service of the Ministry of Social Policy of Ukraine.

It is noted that the Ministry of Social Policy has developed a comprehensive pension reform. Relevant draft laws have been submitted for consideration to the authorities and other interested parties for review and proposals.

The aim of the reform is to create a fair and transparent pension system that will provide a decent pension for every Ukrainian man and woman.

The agency emphasized that the introduction of a funded system as part of the reform will allow employees to additionally increase the size of their future pension during their working years.

"Importantly: this will NOT lead to an increased burden on taxpayers. Employer and employee contributions will not increase but will be allocated from the current single social contribution and personal income tax," the ministry explained.

They clarified that the employee will be able to pay an additional voluntary contribution at their own discretion.

"It is expected that the introduction of the funded system will allow the pension to increase by 15-20% compared to the average salary of a person during their lifetime, in addition to the solidarity part of the pension," the Ministry of Social Policy noted.