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News / 24 January 2014 | 12:30
Pension system becomes more socially equitable

Pension system becomes more socially equitable

Ukraine's government has continued to improve social benefits. During 2013, it managed to protect the most vulnerable population categories and to ensure social justice, by reducing the level of government payments to MPs and officials, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

"We have managed to reduce the gap between the pensions of people's deputies and officials and ordinary people. Now their monthly pension can not exceed 10 living wages," said Natalia Korolevska, Minister of Social Policy of Ukraine.

In particular,  the number of people whose pension is under 1,000 UAH was halved, or down by 1.5 million person in 2013. According to the Ministry, if there were 2.428 million persons like that in early 2013, that number dropped to 1 million persons in early 2014. The share of pensions under 1,000 UAH fell from 17.8% to 7.4%. Also, a Law was passed, which guarantees the annual increase of pensions by 20% of wage growth every March, which will carry on the positive changes through to 2014.

Also the pensions for MPs and other officials have been reduced. Government analysts say, the deputies used to receive a pension of 16, 121 UAH, i.e. 90% of the salary. Today, upon retirement, the MP gets the maximum amount of 9,490 UAH, i.e. 10 living wages, and if he continues to work, the pension is 7,632 UAH. The same applies to public servants.
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