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The EBA discussed the reboot of Ukraine’s pension system with the Ministry of Social Policy

06/ 01/ 2025
  The European Business Association held a meeting with Daryna Marchak, First Deputy Minister of Social Policy of Ukraine, to discuss key reforms aimed at rebooting Ukraines pension system. Over the past two and a half years, the Ministry of Social Policy has conducted an in-depth analysis of the shortcomings of the social security system and developed three critical reforms. These reforms take into account demographic shifts exacerbated by the war with russia, including a declining population, an increasing proportion of older people, and a shrinking active workforce. The implementation of a funded pension system will empower citizens to manage their own pension capital. Employees will have access to information about their contributions and can plan future pension payments, which will supplement solidarity-based pensions. The new solidarity pension model will divide pension payments into basic and insurance components and include automatic pension indexation to prevent devaluation. Special pensions for certain worker categories will be managed separately, ensuring fairer conditions for all. A clear insurance principle will be introduced, linking pension size to the amount of contributions and the duration of payments. The larger the contribution to the Unified Social Tax (UST), the higher the pension. Social insurance reform will enhance protection for workers in cases of temporary disability, occupational injuries, or diseases. Significant increases in benefits and an extension of sick leave from 4 to 14 months will support quality rehabilitation and help workers regain their potential and return to active life. Daryna Marchak also emphasised the importance of integrating older people, individuals with disabilities, and veterans into economic activity. Employment, workplace adaptation, and retraining through partnerships between the state and employers will foster labour market integration, promote a culture of active longevity, and ensure a dignified retirement. We sincerely thank the Ministry of Social Policy team for the meeting and look forward to continued cooperation!

The European Business Association held a meeting with Daryna Marchak, First Deputy Minister of Social Policy of Ukraine, to discuss key reforms aimed at rebooting Ukraine’s pension system.

Over the past two and a half years, the Ministry of Social Policy has conducted an in-depth analysis of the shortcomings of the social security system and developed three critical reforms. These reforms take into account demographic shifts exacerbated by the war with russia, including a declining population, an increasing proportion of older people, and a shrinking active workforce.

The implementation of a funded pension system will empower citizens to manage their own pension capital. Employees will have access to information about their contributions and can plan future pension payments, which will supplement solidarity-based pensions.

The new solidarity pension model will divide pension payments into basic and insurance components and include automatic pension indexation to prevent devaluation. Special pensions for certain worker categories will be managed separately, ensuring fairer conditions for all.

A clear insurance principle will be introduced, linking pension size to the amount of contributions and the duration of payments. The larger the contribution to the Unified Social Tax (UST), the higher the pension.

Social insurance reform will enhance protection for workers in cases of temporary disability, occupational injuries, or diseases. Significant increases in benefits and an extension of sick leave from 4 to 14 months will support quality rehabilitation and help workers regain their potential and return to active life.

Daryna Marchak also emphasised the importance of integrating older people, individuals with disabilities, and veterans into economic activity. Employment, workplace adaptation, and retraining through partnerships between the state and employers will foster labour market integration, promote a culture of active longevity, and ensure a dignified retirement.

We sincerely thank the Ministry of Social Policy team for the meeting and look forward to continued cooperation!

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