Significant increase in pensions: what are the expectations from indexation in 2026?

Ukraine plans to implement a traditional pension indexation on March 1, 2026. This procedure is designed to compensate for inflation-related losses and preserve the purchasing power of older people, who are most affected by economic difficulties.

The indexation will affect only the fundamental part of the pension, excluding allowances and other additional payments. At the same time, owners of “special pensions” – military personnel, judges, prosecutors, Chernobyl survivors, and those who recently received a pension – will not receive an increase.

The amount of the pension increase is usually determined in accordance with economic indicators for the previous year. In 2025, the indexation was 11.5%, but in 2026, the government intends to reduce it due to martial law and budget constraints.

The draft state budget for 2026 provides for pension payments totaling UAH 1.27 trillion, which is UAH 123.4 billion more than in the previous year. It is also planned to increase the minimum pension from UAH 2,361 to UAH 2,595.

In addition to indexation, on April 1, pensions for working pensioners will be recalculated every two years, taking into account additional insurance experience and a possible wage increase. Lawyers emphasize that the Pension Fund carries out this process automatically, but pensioners can apply independently if the deadline has already passed.

It is important to note that, under the legislation, the pension after recalculation or indexation cannot decrease; it can only increase or remain at its previous level.