The Ministry of Social Policy has refuted the minister's claims regarding a tax on pensions.

The Ministry of Social Policy refuted the minister's statements about a tax on pensions.

The introduction of funded pensions will not entail an increase in taxes. However, individuals will have the option to make additional voluntary contributions at their own discretion.

This information was reported by the press service of the Ministry of Social Policy of Ukraine.

It is noted that the Ministry has developed a comprehensive pension reform. Relevant draft laws have been submitted for consideration by state authorities and other interested parties for review and feedback.

The aim of the reform is to create a fair and transparent pension system, ensuring that every Ukrainian man and woman can receive a decent pension.

The ministry highlighted that the introduction of the funded system, which is part of the reform, will allow employees to increase the amount of their future pension throughout their working life.

"Importantly, this will not result in an increased burden on taxpayers. Contributions from employers and citizens will not rise and will be allocated from the current Unified Social Tax (UST) and Personal Income Tax (PIT)," the ministry explained.

They clarified that employees will be able to make additional voluntary contributions at their own discretion.

"It is expected that the implementation of the funded system will increase pensions by an additional 15-20% compared to an individual's average salary over their lifetime, in addition to the solidarity part of the pension," they added.

Today, Minister of Social Policy Oksana Zholnovich stated that the planned pension reform in Ukraine includes a mandatory contribution of 9% from salaries towards the funded pension.