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Ukraine Boosts Pension and Social Welfare Spending in 2024
The Ukrainian government has significantly increased spending on pension and other planned payouts in 2024, according to recent data. Here’s a breakdown of the key figures and developments:
Pension Fund of Ukraine (PFU) Expenses
- Total pension expenses in 2024: 736.4 billion Ukrainian hryvnia (UAH)
- Increase compared to 2023: 9.6% (64.4 billion UAH)
State Budget Expenses on Social Benefits
- Total expenses on benefits and housing subsidies in 2024: 39.4 billion UAH
- Increase compared to 2023: 11.8% (4.2 billion UAH)
Pension Trends in Ukraine
- November 2024 Update: Total number of pensioners fell by 164,000 to 10.353 million.
- October 2024 Update: Average pension stood at 5,852 UAH, up 4,671 UAH (8.7%) since the start of the year.
- 2025 Outlook: High inflation is expected to erode real income for pensioners.
2025 Pension Projections
- No pension increases planned for January, due to freeze on social spending in the 2025 state budget.
- Planned pension indexation set for March 1, 2025, considering 50% of average wage growth over the past three years and 50% of the previous year’s inflation.
