Situation with pension benefits is critical, there are not enough resources to increase pensions - Zholnovych
Due to the fact that a large number of Ukrainians have moved abroad, the number of unified social taxpayers in Ukraine is already lower than the number of pensioners. Therefore, the state lacks the resources to increase payments.
This was stated by Minister of Social Policy Oksana Zholnovych during the event "Protection of Social Rights during the War in Ukraine" in Vilnius, a video of which was published by the Council of Europe Office in Ukraine.
"Due to the decrease in the number of people, because a large number of them are either at war or have left to save their lives, we are losing the opportunity for social protection. We don't have enough resources to maintain or increase pension benefits for our pensioners, and today almost all of them are on the verge of poverty. Yes, we have increased poverty," Zholnovych said.
The head of the Ministry of Social Policy clarified that currently there are already fewer payers of the Single Social Contribution in Ukraine than pensioners.
"We are facing a critical situation with pension benefits today, as 9.5 million people pay unified social tax, while 11 million pensioners receive pension benefits... This is a very unfavorable ratio for strengthening social protection in the PAYG pension system for our citizens," Zholnovych explained.
At the same time, she announced changes to the legislation that should make pension benefits fairer for those pensioners who were granted them relatively long ago.
According to Zholnovych, this is the first part of a major reform that will unify all social benefits into a single Social Code. The second part of the reform should be the introduction of financial defined contributions.
"We need to enable our working citizens to create their own savings in order to be able to provide for their retirement in the future. In addition, as the practice of other countries shows, such savings are also a very good domestic investment resource that we need for recovery," added Zholnovych.
As reported, the Budget Declaration for 2025-2027 approved by the Cabinet of Ministers on 28 June, which is to become the basis for preparing the state budget for the next year, also provides for an annual increase in tax revenues, a reduction in foreign aid and the restoration of the Road Fund, which finances road repairs and construction.
At the same time, the Budget Declaration for 2025-2027 provides for no increase in the minimum wage and subsistence minimum.
