It also stipulates the cancellation of payment of special pensions for working members of parliament, judges and state employees, RIA Novosti reported.
In compliance with the law, the working pensioners will be paid 85 percent of their current pensions, but not less than the subsistence wage for those who have lost ability to work. To date, a subsistence wage in Ukraine is about 949 hryvnias per month ($34).
According to Ukrainian Prime Minister Arseniy Yatsenyuk, the restriction of pensions will not affect working pensioners whose pension is less than 1,500 hryvnias ($55).
The adoption of this law is necessary for receipt of a new loan program of the International Monetary Fund (IMF).
In mid-February, the IMF announced $17.5 billion loan for Ukraine designed to support its budget. Under the deal, Kiev will have to cut spending, restructure its banks and take measures to tackle corruption.