Publication date: 04.06.2024
The maximum pension limit in Ukraine
Introduction
The amount of pension payments in Ukraine is regulated by legislation and has certain limitations. These restrictions can apply to both the maximum and the minimum amount of the pension. In this article, we will consider the issue of the maximum limitation of the pension, its legal regulation and possible consequences.
Chapter 1. Regulatory regulation of the maximum pension amount
The main law regulating the issue of pension provision in Ukraine is the Law of Ukraine "On Mandatory State Pension Insurance". This law establishes the basic requirements for the appointment and payment of pensions, including the maximum amount of pension payments.
According to Article 28 of the specified Law, the maximum amount of the old-age pension cannot exceed 10 subsistence minimums established for persons who have lost their working capacity. For other types of pensions (disability, in connection with the loss of a breadwinner, etc.), their maximum amounts are established.
Chapter 2. The procedure for calculating the maximum amount of the pension
To calculate the maximum amount of the pension, it is necessary to determine the living wage for persons who have lost their ability to work. This indicator is annually reviewed and approved by the Verkhovna Rada of Ukraine.
For example, in 2023, the subsistence minimum for persons who have lost their ability to work is UAH 2,454. Accordingly, the maximum age pension cannot exceed 10 * 2,454 = UAH 24,540.It should be noted that when calculating the maximum amount of the pension, the sums received by the citizen from other sources, for example from other pensions or state social assistance, are also taken into account.
Chapter 3. Peculiarities of applying the maximum pension limit
The maximum pension limit may not apply to all pensioners. It does not apply to:
- persons entitled to special pensions (for example, people's deputies, civil servants, judges, etc.);
- persons who receive a pension for special services to Ukraine;
-persons who suffered as a result of the Chernobyl disaster.
In addition, the maximum limit does not apply to pensions granted before 1 October 2011.
Chapter 4. Consequences of the maximum pension limitation
The establishment of the maximum amount of the pension is intended to ensure a fair and equal distribution of pension payments among all citizens. It is aimed at preventing a significant gap between the highest and lowest pensions.
However, this restriction may cause some dissatisfaction among pensioners who had high wages and paid higher insurance contributions. They may feel that the pension cap infringes on their right to a decent pension.
Conclusion
The maximum amount of pension in Ukraine is established by legislation and is 10 times the subsistence minimum for persons who have lost their ability to work. This restriction is aimed at ensuring a fair distribution of pension funds, but may cause dissatisfaction among certain categories of pensioners.Despite this, this rule is an important element of the pension system of Ukraine.
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