Ukraine’s 2026 budget includes provisions for pension adjustments starting in March, yet not all of the country’s 10.3 million pensioners will receive an increased monthly payment. While the government has allocated 251.3 billion hryvnias toward pension obligations, specific criteria will determine eligibility for the increase. This report details which retirees will – and will not – see a boost to thier benefits as Ukraine continues to navigate ongoing economic challenges and annual pension indexation.
Who Won’t Receive Pension Increases in 2026?
Ukraine’s 2026 budget includes funds for pension increases starting March 1, but not all retirees will see a boost to their monthly payments. The funds are allocated to cover existing pension obligations, according to the Ministry of Finance of Ukraine.
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The annual pension adjustment is designed to partially offset rising costs for goods and services, and is automatically applied based on existing pension records, according to the Pension Fund of Ukraine (PFU). The adjustment applies only to the base pension amount, excluding any supplements for years of service or age.
Specifically, retirees who have been receiving benefits for less than three years and those who receive special pensions will not be eligible for the increase in 2026. This decision comes as the government prepares to allocate 251.3 billion hryvnias from the state budget to pension payments for 10.3 million Ukrainians in 2026.
How Are Pensions Indexed?
The size of the pension increase is calculated annually using a formula that considers both inflation and wage growth. The government determines the adjustment coefficient, taking into account the rate of inflation from the previous year and the average wage growth in Ukraine, with insurance contributions factored in.
The calculation uses data from the three calendar years preceding the adjustment year. For the 2026 indexation, figures from 2023-2025 will be used. This annual review ensures pensions maintain some purchasing power amidst economic changes.
Important Note: The allocated funds will be transferred to the Pension Fund and used, in part, for the indexation process.
Pension Indexation Rate in 2025
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In 2025, the indexation rate was 1.115, resulting in an average increase of 9.5% in pension payments.
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The minimum pension increase was 100 hryvnias, while the maximum increase was 1,500 hryvnias.
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The indexation rate for next year will be determined in February 2026, and there is a possibility it could be higher.
