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February 2024 pension recalibration after January subsistence minimum surge

Pensions in February 2024
Pensions in February 2024

Pensioners in Ukraine are poised for a financial adjustment as certain pension payments undergo recalibration in February 2024, prompted by a preceding surge in the subsistence minimum indicator this January.

Starting Jan. 1, 2024, specific pension categories experienced an increment, reflecting the reevaluation of subsistence minimums tailored to diverse population segments. The impending recalibration in February is expected to have a significant impact on the overall size of pensions, shaping the financial landscape for retirees in the country.

The minimum pension will remain at 2,361 UAH ($63), while the maximum pension will stand at 23,610 UAH ($640) as of Feb. 1.

Figures for pension indexing, slated for implementation from March 1, 2024, will be unveiled in the latter half of February, with an estimated indexing of around 13%.

The recalibration of pensions in 2024 will unfold across three stages: January, March, and July.

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• January 2024: Payments will increase for those receiving the minimum and maximum pension due to the rise in the subsistence minimum from 2,093 ($56) to 2,361 UAH ($63).

• January and July 2024: The pensions of Chornobyl victims and individuals receiving the minimum pension at age 65 with full insurance experience will be recalibrated. The initial increase will raise the smallest payment to 2,840 UAH ($76), followed by an increase to 3,200 UAH ($85).

• March 2024: Pensions will increase for everyone subject to indexing according to the plan, aiming to equalize payments for citizens who retired at different times.

The average pension is expected to rise to 6,000 UAH ($160) after indexing in 2024.

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The minimum pension and certain other payments experienced an increase in January due to the inclusion of the subsistence minimum in the state budget for 2024.

The overall subsistence minimum in 2024 is 2,920 UAH ($78), with the subsistence minimum for those unable to work rising to 2,361 UAH ($63).

The minimum pension saw an increase to 2,361 UAH ($63), up by 268 UAH ($7) from 2023.

In January, several additional increases were implemented:

• Maximum pension payments rose to 23,610 UAH ($640).

• Payments for overtime experience increased to 23.6 UAH ($0.6) for each additional year.

• The amount of voluntary pension contribution saw an uptick to 1,562 UAH ($41).

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• A supplement for single pensioners in need of care increased to 944 UAH ($25).

• Pension payments for individuals reaching 65 years of age and meeting experience requirements rose to 2,840 UAH ($76).

Various pension supplements and social benefits saw increases after the rise in the subsistence minimum.

The recalibration of pensions, allowances, increases, and supplements will be carried out from March 1, 2024, in tandem with the annual indexing of pensions, as outlined in paragraph 9 of the Final Provisions of the Law on the State Budget of Ukraine for 2024.

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Read the original article on The New Voice of Ukraine