Working While Retired

Rules for employed pensioners: taxes, indexation, recalculation

Key rules

  • Pension is paid in full — no work restrictions (except some civil service posts)
  • A working pensioner pays SSC/PIT/military levy like a regular employee
  • 1 year of work = +1 year of service → automatic pension recalculation every April 1
  • Early pension — suspended during employment (tax nuance)
  • Civil service/courts/prosecutor posts have pension cumulation restrictions

How a year of work changes the pension

Estimated increase after recalculation: +100 грн → 6 100 грн

Recalculation adds ~1% of salary per worked year (service coefficient). The exact amount depends on your individual salary coefficient — the PFU calculates it.

Taxes on pension + salary

  • Pension up to 10 subsistence minimums — untaxed; excess — 18% PIT + 5% military levy
  • Salary — 18% PIT + 5% military levy; SSC paid by the employer
  • FOP-pensioner: SSC optional (voluntary), single tax — mandatory
  • Disability and military pensions — untaxed
The yearly recalculation happens automatically — no application needed. If service/salary increased, the pension can grow; check accruals in the PFU e-cabinet.