New level of minimum pension — what awaits in 2026

Official Cabinet Proposal: Minimum Pension 2,595 Hryvnia.  In the draft state budget for 2026, 1,027 billion hryvnia is allocated for pension expenditures – representing approximately 19% of all state budget expenditures and the largest item of social welfare spending. This is 123 billion hryvnia more than in 2025.

The Cabinet proposes to set the subsistence level for persons who have lost work capacity (including old-age pensioners and persons with disabilities) at 2,595 hryvnia. The government bases this on a forecast of consumer price growth of 9.9% in 2026.

How this amount is calculated: 2,361 hryvnia × 1.099 = 2,595 hryvnia. Mathematically this appears logical and sound, yet this exact figure has sparked the most heated debates regarding real purchasing power and adequacy for living.

Criticism from parliamentarians.  Danylo Hetmantsev, chairman of the parliamentary Committee on Finance, Tax and Customs Policy, sharply criticizes the Cabinet’s proposal, calling the 234-hryvnia increase “mockery of elderly people.” In his opinion, while defense is the budget’s first priority, people and their social support must be the second priority.

Hetmantsev proposes an alternative budget with the following social indicators:

• Subsistence level – 4,700 hryvnia (instead of the proposed 3,209)
• Minimum pension – 4,700 hryvnia (instead of 2,595)
• Minimum wage – 12,000 hryvnia (instead of 8,647)

According to him, this represents “the first step in a phased substantial review of payments to bring them closer to real necessary indicators.” Hetmantsev also emphasizes that the subsistence level should actually be a level on which one can truly live, not merely a mathematical construct in the budget.

How maximum pension and other indicators will change.  In 2026, the maximum pension will increase from 23,610 to 25,950 hryvnia – equivalent to ten subsistence levels. The surcharge for extra service years will increase from 23.61 to 25.95 hryvnia per year. Ukraine’s minimum wage has not increased for two years, but in 2026 it is to rise to 8,647 hryvnia. This will directly affect pensions of citizens whose payments are tied to the minimum wage – specifically those aged 65 with full employment history (35 years for men, 30 years for women).

Pension indexation in March 2026.  In addition to the base 234-hryvnia increase, the Cabinet has planned pension payment indexation starting March 1, 2026. The amount of indexation will depend on inflationary processes in the first quarter of 2026 and will be announced in February of the following year. For comparison: pensions were indexed by 14% in 2022, 20% in 2023, 8% in 2024, and 11.5% in 2025. Thus, 2026 indexation could serve as an additional source of pension payment increases beyond the base increase.

Transformation of the pension system on the 2026 horizon.  Beyond simply increasing pension amounts, a serious transformation of Ukraine’s entire pension system is planned for 2026. The Ministry of Social Policy, together with international specialists, is working on updating the pension security model for citizens.

Basic payment for senior citizens. The system will provide guaranteed basic payments for all persons who have reached age 65 (or 60 for certain categories) with full insurance history. This will create a sort of “social minimum” protecting the most vulnerable elderly populations.

Transformation of special pensions. So-called special pensions for military personnel, law enforcement, and other categories will be converted to professional pension format. This should increase distribution fairness and unify the system.

Bonuses for combat experience. Supplements will be introduced for combat participants and those with combat experience. This becomes especially relevant in the context of prolonged Russian aggression.

Who specifically will be affected by the 234-hryvnia increase.  The 234-hryvnia increase will automatically affect the following retiree categories. Pensioners with service records whose payments are close to minimum will receive this increase. The minimum pension for persons with disabilities will also rise from 2,361 to 2,595 hryvnia – distribution depends on disability group. Those whose pensions depend on minimum wage will see more noticeable increases due to minimum wage growth from 8,000 to 8,647 hryvnia.

At the legislative level, a guarantee principle is enshrined: even if during recalculation pension payments theoretically should decrease, individuals will still receive pensions at the previously established amount. This protects pensioners from possible payment reductions during difficult economic times.

Comparison with European standards.  Even after the 234-hryvnia increase, Ukraine’s minimum pension of 2,595 hryvnia will remain among Europe’s lowest. For comparison, Ukraine’s average pension as of July 1, 2025, was 6,410 hryvnia. On average, developed European countries maintain minimum pensions ranging from 800 to 1,200 euros monthly (approximately 28,000 to 42,000 hryvnia at current rates). Even recently-joined EU member states have significantly higher minimum pension levels. This indicates Ukrainian pensioners’ material situation will remain strained even after the increase.

Debate over real purchasing power.  A key argument by critics is that the 9.9% minimum pension increase fails to cover the actual cost-of-living increase for pensioners. Inflation affects different commodity groups differently. For elderly people spending significant income portions on medicines, utilities, and food, inflation often appears higher than average. Hetmantsev notes the subsistence level wasn’t reviewed during 2025, resulting in lost pensioner purchasing power.

Practical recommendations for pensioners

1. Verify insurance history. Contact the Ukrainian Pension Fund to verify proper recording of insurance service.
2. Document entire work period. All labor books and employer orders must be available.
3. Contact PFU if discrepancies exist. Errors should be corrected before retirement.
4. Develop a budget plan. Review expenses considering the new minimum pension amount.
5. Consider additional income sources. Those capable of working should explore supplementary earning opportunities.

Conclusions

For 2026, the Cabinet plans to increase the minimum pension by 234 hryvnia – from 2,361 to 2,595 hryvnia. While this increase satisfies indexation logic matching projected inflation, it drew parliamentary criticism regarding inadequacy. Beyond the base minimum increase, 2026 will see March 1 pension indexation, minimum wage growth to 8,647 hryvnia, and pension system transformation beginning based on fairness and adequacy principles.  Debate over minimum pension amount adequacy will continue until the state budget receives final parliamentary approval.

Author – Yulia Popadin, lawyer, tax and customs law practitioner at the Attorney Association “Legal Company WINNER”.    If you have any questions or problems related to calculating your pension amount, verifying your insurance history, appealing decisions of the Pension Fund of Ukraine, obtaining consultations on pensioner rights, or planning your financial security in retirement – contact our team of professionals in the field of tax and customs law.