Funded pensions will not increase taxes - Ministry of Social Policy
Kyiv • UNN
The Ministry of Social Policy has developed a comprehensive reform of the funded pension system. The reform will not lead to a tax increase, but will increase pensions by 15-20%.
In Ukraine, funded pensions will be introduced without raising taxes, but will provide for the possibility of voluntary additional contributions. The press service of the Ministry of Social Policy of Ukraine announced the new comprehensive pension reform on Facebook, UNN reports.
Details
It is noted that the Ministry of Social Policy has developed a comprehensive pension reform, and the relevant draft laws have already been submitted to the authorities and other stakeholders for review and suggestions.
The goal of the reform is to create a fair and transparent pension system so that every Ukrainian can receive a decent pension
The agency assured that the introduction of the funded system, which is part of the reform, will allow employees to further increase their future pension during their working life.
Important: this will NOT increase the burden on taxpayers. The employer's and employee's contributions will not increase, and will be separated from the current unified social contribution and personal income tax
"Employees will be able to pay an additional voluntary contribution at their own request," the Ministry of Social Policy said.
According to the press service, the introduction of the funded system is expected to increase pensions by another 15-20% compared to the average lifetime salary of a person, in addition to the solidarity part of the pension.
Recall
The Ministry of Social Policy plans to launch a funded pension system in 2026. The legal framework and IT system for the state accumulation fund are currently being developed.
