This year, the size of pensions of Ukrainians with insufficient term of service will be increased from July 1 to 1,435 UAH and from December 1 to UAH 1,497. This is provided by the law on the state budget. But there are few such pensioners in Ukraine. All the rest will receive the increased pensions already next year.
Taras Kazak, the expert on pension reform, said that the next innovations of the pension reform will come into effect in 2019. Namely, pensions will be indexed by a special method. This method provides for an increase in the size of pensions by 50% of the inflation rate recorded in the previous year, and 50% from the growth of the average salary in the same year.
For example, if the rate of inflation this year reaches 10%, then the pension next year will be increased by 5%. The salary is the same. It will rise by 12% this year, which means that the pension will increase by 6% next year. It turns out that if this year the amount of a person's pension is 1 800 UAH, then with an expected level of inflation and an increase in the average salary, the pension will be increased by 198 UAH in 2019 (1,800 x 5% + 1,800 x 6%).
