Ukraine has announced a 12.1% increase in pensions and insurance payments starting March 1, as part of its ongoing pension enhancement policy amid economic challenges.
Starting March 1, pensions and insurance payments will be raised by 12.1% for millions of Ukrainians, as announced by Prime Minister Julia Svyrydenko. This increase surpasses the current inflation rates and is part of the government's pension uplift policy covering the period from 2021 to 2025. Despite the economic difficulties stemming from prolonged conflict, the Ukrainian government aims to improve the financial situation of retirees.
As of January 1, about 10.1 million pensioners were registered within the Ukrainian pension fund, with the average pension amounting to just under 130 euros. Disturbingly, over half of the pensioners receive less than 100 euros per month, highlighting the struggles many face in meeting basic needs. The increase in pensions is crucial for these individuals, as it provides some relief in a challenging economic climate characterized by low pension rates.
The context of this decision is significant, considering that Ukraine has been resisting Russian aggression for the past four years, which has significantly impacted its economy. Over 40% of the state budget is financed from abroad, primarily to support pension payments and salaries for government employees. This reliance on foreign aid, coupled with the pension increases, illustrates the delicate balance the Ukrainian government must maintain between supporting citizens and managing economic pressures from ongoing conflicts.
