Which Ukrainians can count on a pension of 10 thousand hryvnia: calculation formula

In 2021, the average pension for women in Ukraine is 3031.32 UAH / photo UNIAN Vladimir Gontar

Some Ukrainian pensioners can count on receiving pensions three times higher than the average pension in Ukraine.

In 2021, the average pension for women in Ukraine is 3031.32 UAH, which is 30% less than the average pension for men - 4242.53 UAH. However, some Ukrainians can count on a pension of 10 thousand UAH. This is stated in the law “On Compulsory Pension Insurance” as amended on July 1, 2021.

Zp = Sun x (Sk: K), where:

Zp - wages (income) of the insured person for calculating the pension, in hryvnias;

Sun - average salary (income) in Ukraine, from which insurance premiums are paid, for the three calendar years preceding the year of application for a pension.

Sk - the sum of wage (income) coefficients for each month (Kz1 + Kz2 + Kz3 + ... + Kzn)

K - insurance period for months, taken into account to determine the wage (income) coefficient of the insured person.

The salary coefficient for each month of insurance coverage is determined by the formula:

Will pension reform be carried out?

Due to the ineffectiveness of the current pension model in Ukraine, many citizens and experts insist on its reform. Thus, the opinion is repeatedly expressed about raising the retirement age with a concomitant increase in the average amount of material support. directly , but today the country is already tightening requirements for future pensioners.

Pensions in Ukraine are among the lowest in Europe. The government of the country is currently taking a number of actions to tighten the requirements for receiving payments. Despite this, the indexation of payments occurs extremely slowly and, accordingly, pensions grow lower than inflation.

Н = С + Зд, where:

N - the amount of wages (income) of the insured person, in accordance with this Law, is taken into account for calculating the pension for the month for which the wage (income) coefficient is calculated;

C - the amount of wages (income) of the insured person, from which insurance premiums are actually paid. If the amount of insurance premiums is paid based on the amount of the minimum wage established by law for the month for which the income (profit) was received, the amount of the minimum wage is taken into account to calculate the pension;

Zd - the amount of wages for the month for which the wage (income) coefficient is determined.

Pension calculation formula:

The average salary in the country for the past three years is multiplied by 1%, by the length of service in years and by the ratio of the salary of a particular person to the average.

Amount of disability pensions

For a long time, the authorities did not pay due attention to the problems of people with disabilities. Now the time has come for change, and within the framework of certain reforms, various social payments, assistance, additional payments and wages are being increased. Since the issues of people with disabilities require urgent solutions, it was decided to review the amount of benefits. It is expected that the size of the disability pension in Ukraine in 2021 will be set at a level that will be enough for normal living, the purchase of medicines and other important goods by people who are deprived of the opportunity to earn money for living on their own.

What are the different disability groups?

The fact is that the amount of assistance a person receives from the state is determined depending on his category of disability. The group is determined after a thorough medical examination by a special commission.

The size of the disability pension of group 1 in Ukraine will be the usual 100% of the benefit. This group includes those individuals who cannot work and provide for themselves. This type of disability can be congenital or acquired. Cases with serious injuries are partially considered. Representatives of this group are most often looked after by relatives or close people.

Representatives of the second group are distinguished by the fact that although they cannot work and provide for themselves, they do not need constant care and supervision. It happens that employers still hire disabled people of the second group for some positions and they perform basic labor tasks.

The pension for disabled people of group 2 leaves about 90% of the benefit amount. But everything is compensated by the employment of citizens with disabilities.

The third group is not considered particularly serious. It includes people who have specific chronic diseases, which sometimes lead to the need to change their work environment or general place of life. Such diseases generally do not depend on the person himself and can be hereditary. Most often, such diseases do not particularly affect a person’s ability to work, and therefore he can safely continue to earn his living. A disabled person of the third group can receive assistance from the state, but its amount will be adjusted depending on the length of the person’s work experience.

The minimum pension for disability group 3 in 2021 in Ukraine is 50% of the benefit amount. If they have the necessary length of service, people with disabilities can count on 85% of the benefit.

What is needed to receive a disability category?

A person cannot just get a category and start applying for social benefits. First, you need to contact the social service, after which the person will need to undergo a special medical examination, during which the commission will determine the real state of the person’s health and his ability to work. If a person, due to injuries, cannot come for a medical examination, then the commission must come to the person’s home, directly to the person himself. Only after receiving the commission’s conclusion can a person contact social services to apply for benefits. Pensions for disabled people of group 3, as well as groups 2 and 1, are calculated in the same manner. The only difference is the size.

You cannot miss a scheduled medical examination without a good reason. If a person does not come at the appointed time, then it is necessary to have documentary evidence indicating a valid reason. Then you can calmly continue the procedure for receiving payments.

State budget 2021 and pensions

• On December 15, 2021, the Verkhovna Rada adopted a bill on the state budget of Ukraine for 2021.
• On the same day, December 15, 2021, Minister of Finance Sergei Marchenko, commenting on a question from one of the deputies about reducing Pension Fund expenses by UAH 8 billion in preparation for the second reading of the draft state budget for 2021, said that the 2021 budget has enough funds for pension payments.
• It was planned that pensions would be indexed by 11% from March 1. In April, automatic recalculation of pensions for working pensioners is planned, taking into account the amount of salary and length of service.
• Starting from January 1, 2021, Ukraine began to increase pensions for certain categories of pensioners. In particular, pensions increased by 300 UAH - to 2400 UAH, the increase applies to those who are over 65 years old and whose work experience is 30 years - for women and 35 years - for men. The increase is due to the increase in the minimum wage in Ukraine, which will be increased for the second time on December 1, 2021 - accordingly, then the pensions of this category of pensioners will increase again, from 2400 to 2600 UAH.
• On January 27, the Cabinet of Ministers approved a bill on indexation of pensions for all pensioners from 2022, which will be submitted to the Verkhovna Rada for consideration.
• On February 17, 2021, during a meeting, the Cabinet of Ministers approved the budget of the Pension Fund of Ukraine for 2021.
• In addition, in 2021 in Ukraine the minimum pension will be increased twice (by a total of 9.3%) - corresponding to the increase in the cost of living for persons who have lost their ability to work.
• From March 1, 2021, a planned indexation of pensions has been carried out in Ukraine, which will amount to approximately 11%. In addition, Ukrainians over the age of 80 began to receive a monthly additional payment of 500 hryvnia (if their pension does not reach the average salary in Ukraine, which is taken into account for calculating pensions).
• From April 1, 2021, Ukraine planned to recalculate pension payments to working pensioners, taking into account length of service (or length of service and earnings) acquired after March 1, 2021.
• From July 1, 2021, pensioners aged 75 to 80 years will begin to receive a monthly supplement in the amount of 400 hryvnia (similarly, if their pension does not reach the average salary in Ukraine, which is taken into account for calculating pensions).
• In July 2021, pensions will be indexed for 1 million pensioners who were granted pensions in 2018-2020, as well as for those receiving a minimum pension.

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Author:

Elena Kovalenko

Pension in Ukraine – features of calculation

The specifics of calculating social benefits in Ukraine are determined by the Law “On Amendments to Acts Concerning Increases in Pensions,” adopted on October 3, 2017. There are 3 types of payments: according to age, disability, loss of a breadwinner. The following have the right to receive payments:

• pensioners;
• disabled people;
• applicants for lifelong maintenance;
• participants of the funded pension insurance system;
• foreigners residing in the country legally.

The nuances when calculating minimum deductions apply to the following categories of citizens:

1. Employees of enterprises with harmful, difficult working conditions. According to Law No. 1788, people over 50 are entitled to payments: men with 25 years of work experience, women with 20 years of work experience.
2. Teachers retire upon their 50th birthday (until the end of the reform, the bar will be raised by 60 months). Mandatory special experience – 25... 30 years (until 2015...2024, respectively).
3. Participants in combat operations in Afghanistan. The retirement age for women and men is 50-55, the insurance period is 20 and 25 years.
4. Miners. Mandatory access to state support is service in the field of mining for 20-25 reporting periods. Miners who have worked for 7.5-10 years (women, men) can also count on a reduction in the retirement age. The PF will count the same number of years.
5. Disabled people. Persons of the first group over 25 years old need only one year of experience; disabled people of the third group aged 56 years need to work for 14 reporting periods. If disability occurs at retirement age, the minimum insurance period will be 15 years.
6. Military. The category of citizens expects their length of service to increase to 25 years (instead of 20) by 2021.

Upon reaching the age of 55, women who have more than 5 children or a disabled child have the right to retire.