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Here’s an explanation of how to calculate the pension indexation coefficient in Ukraine for 2026 based on information from the Pension Fund of Ukraine (PFU):
1. What the indexation coefficient is
The indexation coefficient is a number by which your pension is multiplied to account for inflation and average wage growth. It ensures that pensions maintain their purchasing power.
2. How it is calculated
The formula is defined by Cabinet of Ministers Resolution №124 from 20.02.2019:
K=(CPI growth+Wage growth)×50%100%+1K = \frac{(\text{CPI growth} + \text{Wage growth}) \times 50\%}{100\%} + 1K=100%(CPI growth+Wage growth)×50%+1
Where:
CPI growth – Consumer Price Index growth over the previous year (in %).
Wage growth (3C3) – Growth of the average salary from which insurance contributions were paid over the three years preceding the year of calculation (in %).
Mechanism:
50% of the inflation rate + 50% of the average wage growth → add 1 → get the indexation coefficient.
3. Indicators for 2026
CPI growth (2025): 8.0%
Wage growth (2023–2025 vs. 2022–2024): 16.11%
Calculation:
K=(8.0+16.11)×50%100%+1=1.121K = \frac{(8.0 + 16.11) \times 50\%}{100\%} + 1 = 1.121K=100%(8.0+16.11)×50%+1=1.121
So, the pension will be increased by 12.1% starting March 1, 2026.
4. Example
If your pension before indexation was 5,000 UAH, after applying the coefficient:
5,000×1.121=5,605 UAH5,000 \times 1.121 = 5,605 \text{ UAH}5,000×1.121=5,605 UAH
