Ukraine’s Labor Market Sees Rising Demand for Pensioners
Kyiv, Ukraine – A combination of factors, including mobilization efforts and a general labor shortage, is driving increased demand for pensioners in Ukraine’s workforce. Employers are increasingly valuing the stability and responsibility that older workers bring, leading to a “silver age” in the Ukrainian economy.
Growing Employment Among Pensioners
As of October 1, 2024, 2.8 million of Ukraine’s 10.3 million pensioners were actively employed, representing a steady increase from 19% in 2017 to 26% in 2024 [NISS]. This trend reflects a growing need for experienced workers across various sectors.
Industry Demand and Salary Expectations
Currently, the highest number of vacancies for pensioners are in blue-collar professions, production (2,283 vacancies), followed by the service sector (1,654) and logistics/warehousing (1,179 vacancies). The average salary offered to retired Ukrainians is approximately UAH 27,800 [Newsukrain]. However, salaries can vary significantly based on the role and experience level.
Some positions offer considerably higher earnings. For example, a façade designer can earn between UAH 80,000 to 240,000, although a door installer can earn UAH 120,000 to 180,000. A foreman-installer-welder with their own vehicle can earn UAH 100,000 to 150,000 [Newsukrain].
Legal Considerations and Employer Practices
Ukrainian law prohibits employers from specifying age as a requirement in job postings. However, many personnel portals now allow employers to indicate their willingness to hire pensioners [Newsukrain]. This practice demonstrates a growing acceptance and preference for experienced workers.
The “Silver Age” Economy
Ella Libanova, Director of the Institute of Demography and Social Research of the National Academy of Sciences of Ukraine, describes the current situation as the beginning of a “silver age” in the economy [Newsukrain]. She emphasizes that older workers possess valuable social capital and a strong sense of responsibility, qualities often lacking in younger generations.
Working and Receiving Pension Benefits
Ukrainian law permits retirees to continue working and receive both a pension and a salary. However, it is crucial for pensioners to inform the Pension Fund of Ukraine (PFU) about their employment status to avoid complications with pension payments [112.ua]. Failure to report employment can result in the mandatory repayment of pension funds received [112.ua].
Future Outlook
A planned supplemental payment of 1,000 hryvnias is scheduled for 2026, which could further incentivize pensioners to remain in the labor market [112.ua]. As Ukraine’s labor market continues to evolve, the role of experienced workers is expected to develop into increasingly important.
Pensions in Ukraine: Indexation and Recalculation
Pensions in Ukraine are indexed and recalculated annually, taking into account the growth of average wages and consumer prices [Komersant.ua]. The government has announced plans to allocate resources for this purpose, while the exact amount of the indexation remains to be determined.