Ukrainian Social Policy Minister Andriy Reva says the maximum pension in Ukraine is set at UAH 58,000, or about US$2,165, and while retirement payments are capped on UAH 10,740, or about $400, the vast majority of 12 million Ukrainian retirees receive even smaller amounts, according to TV Channel 112 Ukraine.
”We have 19,200 pensioners who receive over UAH 10,740, of which 18,000 people obtain between UAH 10,000 – UAH 20,000, and nearly 2,000 pensioners receive over UAH 20,000. Today the highest pension in Ukraine is UAH 58,000. Nobody gets pensions worth UAH 100,000 or more in Ukraine. The maximum pension is set at UAH 58,000, which is paid to a Hero of Ukraine, who is a test pilot. All other pensions are lower,” Reva said.
The minister says pensions exceeding the UAH 10,000 limit are not right; however, their cancellation will not solve the problem of the Ukrainian Pension Fund`s deficit.
Reva also stressed the need to build a three-tier pension system in Ukraine.
Earlier, the government plans to raise pensions from October 1 as part of the pension reform, which, according to preliminary estimates, would involve 5.6 million Ukrainians. The government also pledges to abolish taxes for working pensioners.
The government`s pension reform does not provide an increase in the retirement age, but offers other tools to build a fair and deficit-free pension system.
According to a statement by the International Monetary Fund (IMF) after an IMF Executive Board meeting on Ukraine early in April, the country cannot any longer delay comprehensive pension reform, including by raising the effective retirement age.
The list of structural benchmarks of the IMF`s Extended Fund Facility (EFF) includes the adoption of legislation on pension reform by the end of April.
Ukrainian Parliament increased minimal pension from May 1, 2017 up to 1312 hryvnias (49 USD)