Bill on pension reform published, comes into effect tomorrow: pension increase will be effective from Oct. 1

Censor.Net
Bill on pension reform published, comes into effect tomorrow: pension increase will be effective from Oct. 1

Censor.NET reports citing Interfax-Ukraine.

The bill is coming into effect the next day following its publication, except for some provisions.

Read more: Poroshenko signed bill on pensions increase

The bill provides that the increase in pension payments is coming into effect from Oct. 1, 2017.

Earlier, on Oct. 3 the Rada adopted the pension reform providing for modernization of pension payments effective October and increase in minimum insurance period from 15 to 25 years effective Jan. 1, 2018. The bill was supported by 288 MPs out of 226 required.

The bill provides for increase of the maximum amount taxable by single social fee up to 15 minimal salaries (48,000 hryvnia or $1,800 at the moment. The rate of the single social fee will not change.

Effective Oct. 1, 2017, pension payments to working retirees will be restored in full.

From Jan. 1, 2018 the right to retire by age after 60 years will be applied to citizens having 25 years of insurance period.

The minimum insurance period will be increased by one year annually until it reaches 35 years in 2028.

Starting from Jan. 1, 2028, a person with 40 and more calendar years of insurance period will receive pension payments regardless of their age.

Read more: Cabinet increasing minimum pension to 1,452 hryvnia, - Vice PM Rozenko