The Ministry of Social Policy states that the introduction of a cumulative pension system will not involve an increase in taxes.
"The Ministry of Social Policy has developed a comprehensive pension reform. Relevant draft laws have been submitted for review by government authorities and other interested parties for familiarization and suggestions. The aim of the reform is to create a fair and transparent pension system so that every Ukrainian can receive a decent pension," the ministry's statement reads.
The ministry emphasized that the implementation of the cumulative pension system will not increase the burden on taxpayers, as contributions from employers and citizens will not rise and will be allocated from the current unified social contribution (USC) and personal income tax (PIT); at their own discretion, employees will be able to make additional voluntary contributions.
"It is expected that the introduction of the cumulative system will allow for an increase in pensions by an additional 15-20% compared to the average salary of a person over their lifetime, in addition to the solidarity part of the pension," the ministry estimates.
As reported, on January 27, Minister of Social Policy Oksana Zholnovych announced that the first accumulations within the cumulative pension system could begin in 2026.
On January 3, Prime Minister Denys Shmyhal stated that the implementation of basic social assistance and the adoption of legislation regarding the cumulative pension system is planned for 2025 in Ukraine.
In September 2024, the First Deputy Minister of Social Policy of Ukraine, Daria Marchak, reported that the reform of the solidarity pension system has been developed and is being discussed with the Ministry of Finance of Ukraine, while Zholnovych stated that the ministry plans to implement the cumulative pension system starting in 2026. She also predicted the launch of the new solidarity pension system by July 2025.
In September 2023, the Prime Minister announced that reform of the solidarity pension system would take place in 2024.
In October 2023, Zholnovych stated that the government would prepare all the infrastructure for the cumulative pension system by 2025, but if the war continues, the system can only be launched after victory.