Pensions in Ukraine

Pensions in Ukraine are paid out and financed through a mandatory state system for the employed and the self-employed.[1]

Height of pension

The amount paid to retirees is 70% of her/his previous salary.[2][3] The average pension in Ukraine is $ 93.78 (in August 2013).[2] Pensions can as high as $68.75 per month are also common (in December 2014).[4]

Finance system

The state pension programme is financed through mandatory contributions and the state budget.[1][5] Employees pay for 2% to 4.5% of their wages, depending on income.[1][5] An self-employed pays 33.2% of the monthly minimum wage (the minimum wage in Ukraine is 1,218 Ukrainian hryvnia).[1][5] The employer pays 33.2% of the total wage.[1][5] Men over the age of 60 with at least 35 years of coverage and women over the age of 55 and six months with at least 30 years of coverage (for women this age is gradually rising to 60 in 2021 since July 2011[6][7]) are entitled to claim state pension.[1][5]

The current pension system is hampered by a over representation of pensioners in the population; thus there are not enough working citizens contributing for each pensioner.[8][9][10][11] In 2013 the Ukrainian government spend 17.2% of Ukraine's GDP on public pensions, one of the highest shares in Europe and the world.[11]

See also

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 Ukraine: Pension system profile, International Organisation of Pension Supervisors (December 2009)
  2. ↑ 2.0 2.1 Government Slavery: 470,000 Officials Become Hostage to the Regime, The Ukrainian Week (7 August 2013)
  3. ↑ Ukrainian government to raise retirement age for men and women to 65, freeze, cut pensions, UNIAN (11 December 2014)
  4. ↑ Pensioners travel outside of separatist areas to get their cash, Kyiv Post (11 December 2014)
  5. ↑ 5.0 5.1 5.2 5.3 5.4 Ukraine (Social Security Programs Throughout the World: Europe, 2014), Social Security Administration (2014)
  6. ↑ A cosmetic pension system reform in Ukraine, OSW—Centre for Eastern Studies, 3 July 2011
  7. ↑ Ukraine raises retirement age for women to 60, RIA Novosti (8 July 2011)
  8. ↑ Oecd 2000 Private Pensions Conference Paperback – Apr 2001, Organisation for Economic Co-operation and Development, April 2001, ISBN 926418659X (page 120)
  9. ↑ The Grim Outlook for Pensions and Pensioners, The Ukrainian Week (5 July 2011)
  10. ↑ ANALYSIS-Ukraine's generous pension system close to collapse, Fox Business (September 30, 2010)
  11. ↑ 11.0 11.1 Ukraine: Can meaningful reform come out of conflict? by Dr. Marek Dabrowski, Bruegel (1 August 2014)