The Government of Ukraine has announced a major social policy reform aimed at significantly improving the social protection system. The key elements of this reform include pension indexation, the introduction of a funded pension system and the implementation of a basic social assistance project.
Pension indexation
The first step will be the indexation of pensions, which is scheduled for March. This increase will be part of the regular adjustment of pension payments in line with inflation and economic indicators. The indexation allows pensioners to receive additional financial support in the difficult economic conditions caused by the war and inflation.
Read also: Ministry of Health explains changes for people with disabilities in case of MSEC reform
Accumulative pension system
One of the key aspects of the reform is the introduction of a funded pension system. The government is working on the relevant legislation, which is expected to be adopted this year, to launch the system next year. This system will involve the creation of individual pension accounts, where citizens will be able to accumulate funds for their old age.
Basic social assistance
As part of the reform, a basic social assistance project will be implemented. The new system will replace numerous payments with one substantial benefit for families in difficult life circumstances. This will simplify the process of receiving assistance, making it more transparent and convenient for citizens. According to the Government, this initiative will contribute to a more efficient use of budget funds and provide support to those who need it most.
Read also: Ukraine reforms its boarding school system: a step towards independent living in communities
