Disappointment, not indexation: methods for calculating the allowance and reasons for its variation

In March, Ukraine underwent a planned indexation of pensions, as a result of which many pensioners received increased payments. However, the size of the increase turned out to be ambiguous: in some cases it amounted to thousands of hryvnias, and in others – only 100 hryvnias.

Minister of Social Policy Denys Ulyutin noted that the recalculation was carried out using an individual formula. The amount of the increase depends on several factors, including the amount of the existing pension and the insurance period.

In 2026, the indexation coefficient was 12.1%. This indicator is applied to the “net” pension, which is calculated using the formula without taking into account various supplements. Therefore, the actual increase for many Ukrainians may be less than expected.

For example, if the pension taken into account using the formula is 2,790 hryvnias, and taking into account all the supplements – 3,200 hryvnias, indexation will be carried out only on the basis of 2,790 hryvnias. In this case, the increase will be about 337.59 hryvnias.

As a result of such conditions, pensioners sometimes receive a very small increase – even a few dozen hryvnias. However, the government has also introduced a minimum level: if the indexation is less than 100 UAH, the state pays up to this level, so the minimum supplement will be 100 UAH.

At the same time, there is a maximum limit: the largest increase in 2026 was 2595 UAH for pensioners whose estimated pension reaches approximately 21,446.28 UAH.

You can roughly estimate your additional payments by multiplying the “net” pension by 12.1%. For example:
– Supplement 300–500 UAH – if the pension is 2479–4132 UAH;
– Supplement 500–1000 UAH – with a pension of 4132–8264 UAH;
– More than 1000 UAH – if the size of the “net” pension exceeds 8264 UAH.

In addition to indexation, a separate increase in minimum payments was provided for some pensioners. For persons over 80 years of age with the appropriate insurance experience, the minimum pension increased from 3758 UAH to 4213 UAH. For pensioners over 70 years of age with full experience – from 3613 UAH to 4050 UAH, and for those under 70 years of age – from 3323 UAH to 3725 UAH. For pensioners with incomplete experience, the minimum was increased from 3038 UAH to 3406 UAH.

It is important to remember that Ukraine is on the verge of a pension crisis, and hopes for decent payments may not be justified.