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Pensions in Ukraine

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

Contents

Height of pension

The amount paid to retirees is 70% of her/his previous salary. The average pension in Ukraine is $ 53.78 (in June 2015). Pensions can as high as $68.75 per month are also common (in December 2014).

Finance system

The state pension programme is financed through mandatory contributions and the state budget. Employees pay for 2% to 4.5% of their wages, depending on income. An self-employed pays 33.2% of the monthly minimum wage (the minimum wage in Ukraine is 1,218 Ukrainian hryvnia). The employer pays 33.2% of the total wage. 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) are entitled to claim state pension.

The current pension system is hampered by an over representation of pensioners in the population; thus there are not enough working citizens contributing for each pensioner. 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.

References

Pensions in Ukraine Wikipedia