Starting in August, important changes to pension legislation will come into force in Ukraine. These new provisions aim to solve one of the most pressing problems for future pensioners: counting work periods towards seniority even if the employer did not pay the Unified Social Contribution (USC) in the past.
For a long time, the lack of contributions from the employer meant that years of work simply "disappeared" from the work record. This left people at a loss: having actual work experience, they could not accumulate the necessary tenure to retire. The situation will change after the enactment of Law No. 4851-IX.
How the calculation of seniority will change
According to the new rules, so-called "problematic" periods, when the employer evaded tax payments, will now be taken into account when calculating total work experience. This is critically important for those who are on the verge of retirement age and are missing a few years to qualify for benefits.
However, it is important to understand the key limitation of this innovation. Although "gaps" in payments will no longer prevent retirement by age, they will not affect the amount of the pension itself. When calculating the monetary allowance, the Pension Fund will only take into account those months for which funds were actually received in the budget.
Digitalization and assistance in collecting documents
The procedure for appointing a pension will become more transparent and automated. The Pension Fund of Ukraine (PFU) will now independently request data on citizens from state electronic registries. This should significantly simplify the bureaucratic process.
In the event that there is insufficient information in the electronic databases, the Fund's specialists will not simply refuse to grant a pension. On the contrary, they will be obliged to inform the citizen and assist in collecting the missing certificates from archives or former enterprises.
Social support and new payments
The pension system in the country is in a stage of active transformation. For those citizens who do not yet have the right to a labor pension, there is an opportunity to apply for state social assistance remotely through the official PFU portal.
Furthermore, the Verkhovna Rada has supported a bill on basic social assistance for low-income segments of the population. The new mechanism will combine several types of existing payments into one, calculating the amount taking into account the real needs of a specific family.
An important benchmark for the future remains the increase in the subsistence minimum. From January 1, 2026, this indicator will rise to 3209 hryvnias. Along with it, minimum pensions and a number of other social payments will be automatically reviewed, which should help stabilize the standard of living of recipients.