The pension amount in Ukraine is determined by a formula that takes into account:
The average salary: it is expected to be around 15,000 UAH in 2025.
The individual coefficient: this is the ratio of a person's salary to the average salary in Ukraine. For instance, if your salary was 12,000 UAH, the coefficient would be 0.8.
The experience coefficient: calculated at a rate of 1% for each year of service, meaning that 40 years of work experience results in a coefficient of 0.4.
The formula for calculating the pension is as follows:
Pension = average salary × salary coefficient × experience coefficient.
For example, with an average salary of 15,000 and an individual salary of 12,000 (coefficient 0.8) and 40 years of experience (coefficient 0.4), the calculation would be:
Pension = 15,000 × 0.8 × 0.4 = 4,800 UAH.
This amount represents the basic pension without considering additional allowances or indexations that may increase the final sum.
In 2025, a pension indexation of 12% is planned, taking inflation into account. Thus, if your pension is 4,800 UAH, after indexation it will increase to:
4,800 × 1.12 = 5,376 UAH.
Additionally, there are allowances for those with more than the standard work experience. For example, if a man has worked for more than 35 years, and a woman for more than 30 years, the state adds an extra 1% of the subsistence minimum for each year beyond the norm. In 2025, the subsistence minimum will be 3,000 UAH, which means:
For 5 additional years of experience, the allowance will be:
5 × 1% × 3,000 = 150 UAH.
Extra payments may also be provided to pensioners with special state merits, such as veterans, disabled individuals, or mothers of many children.
Let’s remember, more on the subsistence minimum: pensioners will receive additional payments
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