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Government's draft law on pension reform seeks to eliminate shadow employment, assures Volodymyr Groysman
18.05.2017 | 22:47

The Government's draft law on pension reform envisages restoration of social justice and provides an opportunity to eliminate shadow employment. This was stated by Prime Minister of Ukraine Volodymyr Groysman on air of "1+1" TV channel.

He stressed that the current situation in the pension system can be determined as close to catastrophic, thereby inexertion will only lead to deterioration. According to Volodymyr Groysman, the problem is not only because of low percentage of a key source of filling the budget of the Pension Fund of Ukraine - unified social contributions but due to the lack of labor experience needed for retirement. In addition to that, the imbalances in the labor experience are resulting in the situation when a person who has 35 years of experience, receive the same minimum pension as the person who has worked much less or even has never worked at all.

The social justice ought to be set. If I have been working for 35 years and I have been paying taxes faithfully thus I should get a decent pension," said the Head of Government, adding that conscientiously payment of contribution will allow to eradicate gray salaries.

The new system designed as a tool to eliminate shadow employment as well as to reduce the deficit of the Pension Fund of Ukraine, stressed Volodymyr Groysman. We are committed to ensure in 7-10 years a deficit-free budget of the Pension Fund thereby enabling people to receive decent payments.

While touching upon an issue concerning support by the Parliament of the aforesaid reform, the Prime Minister emphasized: "It is not the policy. It is a mathematical reform and it requires a support. One can hardly be against of increasing pensions for 9 million retirees as well as of the abolition of the taxation for working pensioners. This is an integrated solution that will bring the pension system to a new level. I am sure that we will find necessary votes needed for adoption of incentives.


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