Indexation of cash benefits 2016

The issue of indexation of cash benefits is regulated by such a regulatory legal act as the Law of Ukraine “On Indexation of Cash Incomes of the Population”. This is the key law that regulates the calculation of indexation. It is also worth paying attention to the “Procedure for Indexation of Cash Incomes of the Population”. It was approved by the Resolution of the Cabinet of Ministers of Ukraine No. 1078 of July 17, 2003. If you are interested in legal assistance in the issue of indexation of cash benefits for military personnel, the lawyers of the law firm “Prykhodko and Partners” will be happy to help with such requests. We can offer you consultation, legal support and support in appealing the decisions of officials who violate your right to indexation of cash benefits.

What is worth knowing about the legislative regulation of the indexation of the CI?

Article 2 of the Law “On Indexation of Monetary Income of the Population” states that those incomes of the population that are not one-time in nature and received on the territory of Ukraine in hryvnia are subject to indexation. And Article 4 of this regulatory legal act states that indexation is carried out when the value of the consumer price index has exceeded the indexation threshold set at 103%. Incomes of the population should increase on the basis of indexation from the first day of the month following the month of publication of the relevant consumer price index.

Why do servicemen face problems with indexation?

Despite the fact that the legislative norms clearly define the requirements for indexation under the above conditions, in practice this does not always work out that way. Sometimes this is due to the conduct of exclusively current indexation. In some cases, officials refer to the fact that the budget does not have the funds necessary for indexation. And it also happens that representatives of the financial service of the military unit use incorrect data regarding the base month. It is worth noting that, whatever the reason for not conducting indexation, this does not cancel the person’s right to it. Therefore, we suggest that you familiarize yourself with what the judicial practice says on this issue in more detail.

Case No. 320/9144/21

To begin with, it is worth noting that as of today there is a clearly established practice of the Supreme Court on this issue. So, case No. 320/9144/21.

A border guard serviceman filed a lawsuit against the military unit where he serves. The claims were as follows:

• recognizing the military unit's actions regarding the application of July 2015 as the month from which the calculation of the consumer price index begins for calculating the indexation of monetary support for the period from November 30, 2016 to February 28, 2018 inclusive as unlawful;
• the military unit's obligation to calculate and pay the indexation with correct consideration of the date from which this should occur;
• recognizing the military unit's inaction regarding the failure to pay the full amount of indexation as unlawful;
• the military unit's obligation to pay the corresponding amount of indexation.

The cassation appeal was granted, so the serviceman received a court decision in his favor. Now let's consider another similar case, the decision on which is worth paying attention to.

Case No. 280/4812/23

Therefore, the essence of the dispute in this case is similar to the previous case. It also concerns indexation. However, here the court was not addressed by a border guard, but by a National Guardsman. Among his claims were the following provisions:

• recognition of the illegal inaction of a military unit that does not pay indexation in full;
• the obligation to calculate indexation and pay it.

In this case, special attention is paid to the “indexation-difference”. Indeed, as practice shows, military personnel often face not full, but partial non-payment of indexation amounts. However, this does not mean that their rights are not violated in this case. Indexation must be paid in full. Therefore, the Supreme Court upheld the cassation appeal.

How can we be useful to you?

If you turn to the lawyers of the law firm "Prikhodko and Partners" for help in such cases, you can order the following categories of services from us:

• Consultative support. Before taking on the support of such a case, you need to carefully analyze all its circumstances and prospects. This is what the first consultation with a specialist is aimed at.
• Legal support. For example, this may concern an attempt to pre-trial settlement of a dispute with a military unit.
• Representation in court. If the authorized representatives of the military unit are not ready to resolve the problem through pre-trial regulation, then the only option left is to go to court. And, as the above practice of the Supreme Court in exemplary cases shows, such cases are winning. So you should not stop halfway if there is a real opportunity to defend your rights and legitimate interests.

If you need professional legal assistance in cases of indexation of monetary security, fill out the feedback form on our website. After that, a lawyer of the relevant specialization will call you back.