PoliticsWorld

Pensions in Ukraine – how the surcharge for overtime is calculated

The war worsened the financial situation of all Ukrainians. It hit the most vulnerable categories of citizens, including pensioners, especially hard.

Specialists of the Pension Fund of Ukraine toldhow you can calculate the additional payment for excess service, thereby answering one of the most popular questions.

Read also: Pensions in August: is it worth waiting for changes

The surcharge directly depends on the duration of the insurance period and the amount of the person’s pension calculated according to the formula given in Article 27 of the Law of Ukraine “On Compulsory State Pension Insurance” (depending on the acquired insurance period and wages).

Article 28 of the Law of Ukraine “On Compulsory State Pension Insurance” determines that for each full year of insurance experience (over 35 years for men and over 30 years for women), the old-age pension is increased by 1% of the amount of the pension calculated in accordance with the Law. But at the same time, no more than 1% of the minimum old-age pension (no more than the subsistence minimum for people who have lost their ability to work).

For example, the size of a woman’s pension, calculated according to the formula, taking into account the insurance period of 45 years 7 months, is 2800 UAH. She has 15 years of experience over 30 years. For 15 years of overtime service, an additional payment of 15% is added to the pension. Since the size of the pension calculated taking into account the length of service and earnings (UAH 2,800) exceeds the subsistence minimum for disabled persons (UAH 2,027), the supplement is calculated from such a subsistence minimum.

So, the amount of additional payment for overtime work is UAH 304.05 (UAH 2027.00 x 15%, where: UAH 2027.00 is the subsistence minimum for persons who have lost their ability to work, from 07/01/2022).

If the amount of the pension calculated according to the formula does not exceed the subsistence minimum for disabled persons, then the amount of the supplement is determined based on the calculated pension.

At the same time, paragraph 41 of the Final Provisions of the Law retains the right to establish an additional payment for overtime work for a man over 25 years, for a woman over 20 years, if they were granted pensions before 01.10.2011 and they were not transferred taking into account the wages acquired after the pension was awarded. .

We previously wrote what categories of citizens in Ukraine can retire early.

Leave a Reply

Your email address will not be published.

Back to top button