The Grand Chamber of the Supreme Court expressed its legal position on the adjustment of lump-sum social payments during wartime

The Grand Chamber of the Supreme Court, following the consideration of an exemplary case, confirmed the legality of the actions of the Verkhovna Rada of Ukraine and the Cabinet of Ministers of Ukraine to reduce the amount of annual lump-sum financial assistance for the Independence Day of Ukraine for 2023 under martial law.

The Cabinet of Ministers of Ukraine, acting pursuant to the Law of Ukraine ‘On the Status of War Veterans, Guarantees of Their Social Protection’ as amended by Law No. 2983-IX of 20 March 2023, by which the Verkhovna Rada of Ukraine authorised it to determine the amount of the Independence Day allowance, set it at a lower amount than the amount set by law for the allowance paid before 5 May, which was paid before the amendments were made. 

The issue in dispute in this case was the possibility of reducing the amount of lump-sum social payments, as well as the possibility of delegating the authority to determine the appropriate amount of payments to the Cabinet of Ministers of Ukraine by the Verkhovna Rada of Ukraine. 

The Grand Chamber of the Supreme Court stated that in times of war, the priority is to direct the limited financial resources of the state to finance the Armed Forces of Ukraine and other military formations directly involved in hostilities (members of their families), and, accordingly, to protect the sovereignty and territorial integrity of Ukraine, rather than for other purposes that may affect the balance of the state budget. 

In such circumstances, the reduction in the amount of the lump-sum payment provided for in part 5 of Article 13 of the Law of Ukraine ‘On the Status of War Veterans, Guarantees of Their Social Protection’ (Law No. 3551-XII) is due to objective reasons, namely, the desire to balance the state budget in order to properly finance the Armed Forces of Ukraine and other military formations, which by their direct actions protect the sovereignty, territorial integrity and inviolability of Ukraine.

At the same time, the SC GC stressed that the state should focus on determining permanent effective guarantees of social protection, including for persons affected by the war. Such guarantees should have an economic justification that will ensure their permanent, not temporary, nature.

The annual lump-sum payment to persons with war-related disabilities is of an auxiliary and incentive nature and is not the main source of livelihood. The payment of this state aid is established by law and is not part of the constitutional right of citizens to social protection as defined in Article 46 of the Constitution of Ukraine, which cannot be cancelled by law, and therefore the Verkhovna Rada of Ukraine, as the sole legislative body in Ukraine, given the available financial and economic opportunities, may change the conditions and procedure for the payment of such social benefits by adopting laws, subject to constitutional norms and principles. 

By adopting the law, the Verkhovna Rada of Ukraine delegated to the Cabinet of Ministers of Ukraine the right to establish the procedure and determine the amount of a lump-sum payment to persons with disabilities caused by the war, which is made at the expense of the State Budget of Ukraine, which is consistent with the powers of the Government of Ukraine as defined by the Constitution of Ukraine. 

In this case, the claimant — a person with a Group II disability caused by war — challenged the actions of the pension authority, which in 2023 paid him a annual lump-sum benefit for Independence Day of Ukraine in the amount of UAH 2,900, in accordance with Resolution No. 754 of the Cabinet of Ministers of Ukraine dated 21 July 2023. The claimant argued, however, that he was entitled to a benefit equal to eight minimum old-age pensions — UAH 16,744 — pursuant to Article 13 of Law No. 3551-XII.

The SC AdmCC upheld the claim, stating that Law No. 2983-IX, which reduced the amount of the benefit and transferred the authority to determine it to the Cabinet of Ministers of Ukraine, did not comply with the Constitution of Ukraine and led to a narrowing of existing social rights, which contravened Article 22 of the Constitution of Ukraine.

However, the Grand Chamber of the Supreme Court, having considered the appeal, stated that the annual lump-sum payment to persons with disabilities resulting from war, as provided for in part 5 of Article 13 of Law No. 3551-XII, constitutes additional state assistance. It is auxiliary and incentive-based in nature and is granted with the aim of ensuring adequate living conditions for war veterans and protecting their interests in line with the state’s social policy in this sphere.

The link to the resolution of the Grand Chamber of the Supreme Court of 14 May 2025 in case No. 440/14216/23 (proceedings No. 11-67zai24) will be added immediately after its publication in the USRDC.