From 2025, government employees’ pensions will be based on their entire social insurance contribution period rather than the last few years of earnings.

The Government has proposed a significant adjustment to pensions and social insurance benefits starting July 1, 2024, with an expected increase of up to 15%. If approved, this will mark the highest increase ever in these benefits.

Well-designed fiscal plans and communication measures will ensure the pension reform produces its desired effects.

The raise is scheduled to take effect on July 1, 2024, with the simultaneous entry into force of the basic and regional minimum wage increases. However, the exact amount of the raise remains up for debate.

According to current regulations, employees must pay social insurance for 20 years before being eligible to receive a pension. The minimum retirement age is 60 years and nine months for men and 56 years for women.

The Ministry of Labor, Invalids and Social Affairs has proposed reducing the periods of social insurance (SI) premiums payment from 20 to 15 years to enjoy a pension and not limiting lump-sum social insurance withdrawals.