RULES FOR INDEXATION OF HOUSEHOLD INCOMES FROM 1 JANUARY 2024: CLARIFICATION OF THE MINISTRY OF SOCIAL POLICY
The Ministry of Social Policy in its letter dated 22.01.2024. No. 8/0/215-24 provided a response to a request for indexation.
The letter reminded that starting from 1 January 2024, the consumer price index for indexing the monetary income of the population is calculated on an accrual basis based on the Law of Ukraine "On the State Budget of Ukraine for 2024" of 09.11.2023 NO. 3460-IX.
Moreover, the rules by which the calculations are made are described in the Procedure for Indexation of Personal Income, approved by the Resolution of the Cabinet of Ministers of Ukraine No. 1078 dated 17.07.2003.
Paragraph 5 of the Procedure stipulates that the value of the consumer price index is taken as 1 or 100% in the month in which tariff rates (official salaries) are increased. In this case, the consumer price index for further indexation is calculated from the next month.
Thus, as the Ministry of Social Policy explains, when the official salary (tariff rate) increases from January 2024, the amount of salary indexation is determined taking into account the provisions of clause 5 of the Procedure. In other words, the value of the consumer price index in January is taken as 1 or 100%, and for further indexation, the consumer price index is calculated from February 2024.
If salaries were not increased in January 2024, the consumer price index is calculated from January 2024.
The letter also noted that, in accordance with Article 5 of the Law of Ukraine "On Indexation of Monetary Income of the Population" dated 03.07.1991 No. 1282-XII and clause 6 of the Procedure, the indexation of monetary income of citizens is carried out within the financial resources of budgets of all levels.
