Who in Ukraine will not increase pensions as a result of “modernization” and indexing in October

In Ukraine in October this year, as Prime Minister Vladimir Groisman, “savremena” pensions for 5,6 million Ukrainians. In addition, the budgeted indexation of the minimum pension with up to 1312 1373 UAH also postponed to Oct. As a result, nine of the 12 million Ukrainians “retired” will receive bonus payments. The website “Today” found out, who in October of this year, the pension will not increase.

The essence of “modernizing” – the recalculation of base salary used in the calculation of pensions. The last time the base salary was calculated on 2007 figures, during this time, the size of the average three years of salary (it is taken into account in the formula) has increased almost three times. Those who retired before 2007, getting a “legacy” pensions.

Pension “savremena” 5,6 millions of Ukrainians, the payout for them will increase from 50 to more than 100 UAH. Read more about how will be the allocation can be read here.

Another three million will get a raise as a result of indexation. The rest of the pensioners, as explained by senior researcher of the Institute of demography and social studies Lydia Tkachenko, in the formula of calculation of pensions I have a payroll database that have not yet “obsolete”. In addition, given the fact that in the new formula the rate of assessment of the experience is reduced from 1.35 to 1% for the year, for them to “modernize” pension – profitable. The increase under the indexation will not affect those who at the moment the estimated amount of pension is significantly above the subsistence level for the disabled.

In addition, payments in October as part of indexing will not promote those who they are not tied to the subsistence level, for example, civil servants.