To understand the problem in more detail! let’s pay attention to international experience. For example! in some European countries! such as Germany! Great Britain or France! the issues of pension insurance and This allows pensioners pension indexation are not only clearly regulated by law! but also provide for much more control by state authorities. Pension increases This allows pensioners in these countries are carried out on the basis of a more flexible system that takes into account changes in the level of inflation! average wages and even the life expectancy of citizens. ! since the indexation of their pensions is guaranteed at the legislative level.
But the situation does not always look so positive
In many countries! for example! in Italy or Greece! we can observe the opposite situation! when the failure to increase pensions or the delay in indexation of This allows pensioners pensions leads to serious social protests and appeals to the courts. Problems arise due to economic crises! high levels of public debt or instability in the labor ig data market. This! of course! has serious consequences for the country’s social policy.
General information:
Indexation of monetary incomes of the population: The role of the state in supporting purchasing power and social guarantees
Every person living in Ukraine faces the problem of rising prices for basic goods and services. For most of us! this is a challenge that requires prompt resolution and adaptation. However! what to do when wages or pensions do not keep up with inflation? How can the state help its citizens in such conditions? This is where the importance of indexation of the population’s cash income! a legally defined mechanism aimed at maintaining purchasing power! becomes apparent.
According to this law not all income of citizens is subject to indexation
But only those that are regular in nature! for example! salaries! pensions and other social payments. The problem of indexation has become especially relevant in times of economic crises! when inflation grows faster than incomes of citizens.
Basic principles of indexation in Ukraine
According to the provisions of Article 2 of the Law how much to invest ? of Ukraine “On Indexation of Monetary Income of the Population”! monetary income received by citizens in hryvnias on the territory of Ukraine is subject to indexation. This makes This allows pensioners it possible to partially compensate for the increase in the price of atb directory basic goods and services. The system operates when the value of the consumer price index exceeds the indexation threshold! set at 103%. Such indexation is aimed at preserving the purchasing power of the population.
