Social policy minister elaborates on pension payments

Ukrainian Minister of Social Policy Maryna Lazebna says the national budget has sufficient funds to pay pensions to Ukrainians for December 2020, as well as money for scheduled increases in 2021.

"We've recently closed reports on retirement benefits for December. Pension payments shall start on December 4, as planned. Everything will be secured, with no delay on any social payments. The finance minister reiterated this today. Indeed, there is nothing to worry about and spread panic," the Ukrainian TSN TV news service quoted Lazebna as saying on November 27.

The draft national budget for 2021 provides for an increase in pensions, which will depend on the subsistence level and the minimum wage.

Read alsoCabinet explains whether lockdown to affect pension payments to occupied Donbas retirees"During a government meeting [on November 26], the draft budget was approved. I, as social policy minister and individual, will say: Yes, of course, I wanted more money for social programs and social initiatives, but there is an objective reality that must be taken into account," she said.

"And I'd like to support the finance minister – we need to have balance and a sober head on how to pursue the right way. But despite the fact that today people are agitated over a global crisis, having no confidence in tomorrow, the 2021 budget provides, first of all, no reduction in any social benefits. Second, the subsistence minimum is growing. Yes, it is climbing at a small rate, namely 9.3%, covering a little more than the projected inflation, but everything else, including benefits that are tied to it, will also be increased. We'll be working on this so that there is no debt but growth," she added.

The national budget musty be adopted now to increase, in particular, the minimum wage, the subsistence level, and pensions.

"January 1 is coming, Why do we need this budget? It's because the minimum wage is being raised, while another important social standard is being raised as well – the minimum retirement benefit for pensioners who are 65 years old and who have full employment record. It will grow by UAH 400 [US$14]. You see, we say that there is a difficult situation, but we meet all the legal basic social standards. So, people who fall under this category will receive increased pensions already in January. In addition, a program of increasing pensions for 75-year-old retirees will be implemented as early as July. Moreover, pensioners aged 80 will be receiving an additional UAH 500 [US$17.62]. All these points are laid down in the 2021 budget," the minister summed up.

Background

Ukraine's national budget provided for an increase in the subsistence minimum from December 1, 2020.

Payments linked to it, that is salaries (tariff salaries), pensions, and state benefits will grow accordingly.