Pension recalculation for working pensioners: who will receive an increase from April 1

From April 1, 2025, Ukraine will begin automatic recalculation of pensions for working pensioners, taking into account their updated insurance experience. There are about 10 million pensioners in Ukraine, of which 629 thousand continue to work, and it is for them that pensions will be recalculated.

In March of this year, a general increase in pensions for all pensioners took place, and from April 1, automatic recalculation for workers will begin. However, this process will be carried out only after the State Register of Compulsory State Social Insurance receives information on the payment of a single contribution for the first quarter of 2025, reports on which must be submitted by May 10.

Therefore, working pensioners will receive an increase in June, when payments for April and May will be made. Such changes will take into account additional pension rights that accumulate as a result of paying contributions from the salary in the period between indexations.

“We are reviewing the amount of pension rights according to which the pension is calculated,” the Ministry of Social Policy noted. Explaining the mechanism, First Deputy Minister of Social Policy Daria Marchak emphasized that “if a person continues to work after retirement, he pays contributions, which accumulates additional pension rights. These rights will be taken into account when recalculating the pension.”

However, not all working pensioners will be recalculated. As pension law lawyer Andriy Dzis explained, pensioners who do not have at least two years of insurance experience after the pension was assigned or after the last recalculation will not receive an increase. Pensions for working pensioners are indexed from March 1, 2025 only if there are two full years of experience after the pension was assigned or the previous recalculation.

The Pension Fund of Ukraine also emphasized that for pensioners who worked after the pension was assigned and as of March 1, 2025, they have acquired 24 months of insurance experience, the pension recalculation will take place automatically from April 1. Either the earnings on the basis of which the previous pension was calculated, or the earnings for the period after the previous recalculation will be taken into account, if this increases the amount of the pension.

For those who have acquired less than 24 months of insurance experience after the pension was assigned, the recalculation will be carried out no earlier than two years after its assignment or previous recalculation, and only taking into account the acquired insurance experience.

In general, changes in the pension provision of working pensioners are designed to take into account their additional contributions to the pension system, which will provide a more fair and reasonable approach to calculating pension payments for this category of citizens.