Cabinet extends reduced coefficients for special pensions — how it will affect the budget and pensions
Money loves silence: the government has extended a mechanism limiting payments for pensions above 10 times the subsistence minimum. We examine who will lose out on payments and why this decision is important for the country's financial stability.
By Tetiana Suchkova-Ladik
December 31, 2025 · 2 min read
What was adopted
The Cabinet of Ministers extended into 2026 the application of reduction coefficients for special pensions whose size exceeds 10 subsistence minimums (for persons who have lost their ability to work). This is recorded in Resolution No.1778 of 30 December.
"Resolution No.1778 of 30 December continues the application of reduction coefficients to the portion of payments that exceeds the threshold of 10 subsistence minimums"
— Cabinet of Ministers of Ukraine, Resolution No.1778
Who it applies to
The special payment regime applies to a number of categories: civil servants, prosecutors, members of parliament, diplomats, scientists and other recipients of special pensions. At the same time, the restrictions do not apply to participants in the anti-terrorist operation / Joint Forces Operation, persons who took part in the defense of Ukraine, or family members of fallen defenders.
How the coefficients work
For the portion of a pension that exceeds 10 subsistence minimums, reduction coefficients are applied:
- 0.5 — for the amount between 10 and 11 minimums;
- 0.4 — for the amount between 11 and 13 minimums;
- 0.3 — for the amount between 13 and 17 minimums;
- 0.2 — for the amount between 17 and 21 minimums;
- 0.1 — for the amount above 21 minimums.
Practically this means: the first 25,950 UAH (10 minimums) are paid in full, and everything above that — partially.
Example of the impact
If a special pension amounts to 25 subsistence minimums, then in 2025 after applying the coefficients it will fall from 64,875 UAH to about 35,551 UAH — a difference of roughly 45%.
Why this was done
The decision has two logical components: first, it is a mechanism to control budget expenditures amid a prolonged war; second, an effort to preserve the financial stability of the social guarantees system for millions of pensioners with smaller payments. Experts note that without such temporary restrictions, state spending on some social payments would have grown faster than budget revenues.
What this means for citizens
The average pension as of 1 October 2025 is 6,437 UAH, and most pensioners will be practically unaffected by these changes. At the same time, for a small group of holders of large special pensions the adoption of the resolution means a noticeable reduction in payments. For the state, this is a short-term tool to reduce the burden on the budget.
Brief conclusion
This government decision is an example of a pragmatic balance between social justice and budgetary resilience in wartime. It does not resolve the issue of structural reform of the pension system, but it provides time and space for a broader discussion on how to make the system more resilient in the long term.
