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 Society, Ukrainian Politics, Economics
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 Rise in pensions not to boost inflation, Minister Reva says

кабмин пенсия мвф

Pension payments for Ukrainians will not be raised at the expense of the state budget.

This was stated by Minister of Social Policy Andrii Reva, Censor.NET reports citing the Government portal.

"Pensions will be increased not at the expense of inflationary money, but an additional revenues from the economy, so the inflation is out of the question," Reva said.

Read more: PM Hroisman: I would like to see minimum pension payment of 3,000 or 5,000 hryvnia, but it's not possible today

According to the minister, the government managed to avoid upturn in inflation due to last year's well-judged actions that laid the groundwork for the pension reform.

"That's why the binding of the minimum wage to the subsistence minimum was initially eliminated, and after that the salaries were raised, which provided funds necessary for increasing social benefits and allowed to assess the consequences of increase in pensions," Reva explained.

He also underscored the intense economy unshadowing after raise in the minimum wage and changes in labor law.

Read more: List of jobs giving right to early retirement to be expanded, - PM Hroisman

"Wages in Ukraine increased by 37 percent over the first four months of the year, local government revenues from personal income tax increased by 45 percent, while the Pension Fund received extra 7.9 billion hryvnia as of May 1. This suggests that we will have enough funds to increase pensions. It means that there is no need to subsidize raise in pensions from the budget - it will be covered solely by the Pension Fund revenues," the minister summed up.
 
 
 
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