Baku, Azerbaijan, Aug. 15
The amount of minimum work pension in Azerbaijan will increase from 160 manats to 200 manats from October 1, 2019 in accordance with the law "On Amending the Law "On Work Pensions", approved by Azerbaijani President Ilham Aliyev, Azerbaijani Ministry of Labor and Social Protection of the Population told Trend on Aug. 15.
The package of social reforms initiated by President Aliyev and ensuring revolutionary steps towards improving the welfare of the population, strengthening social protection of pensioners, and increasing the amount of pensions is of particular importance.
The minimum pensions have been increased from 116 manats (in some categories from 80 manats) to 160 manats since March 1, 2019. As a result, 233,000 citizens’ pensions have been increased.
According to the new law, some 660,000 people’s minimum pensions will increase up to 200 manats. Thus, the minimum work pensions have been increased by 72.4 percent in Azerbaijan this year as an integral part of the president’s package of social reforms.
This amount allows for increasing the cost of living for pensioners (149 manats) in Azerbaijan up by maximum 34.2 percent. Azerbaijan will rank first in the CIS in terms of purchasing power (according to purchasing price parity) of the minimum pension.
According to another instruction indicated in the law “On Amending the Law “On Work Pensions”, pension capital fixed in the insurance part of the personal account of the insured people will be indexed once a year according to the annual level of the consumer price index.
Indexation will serve to an increase in pension capital, which is important for providing the insured people with big pensions in the future.
The salaries of civil servants, military personnel, employees of the judiciary, law enforcement bodies, the Ministry of Emergency Situations, the migration service, people with special ranks and other corresponding categories have greatly increased upon President Aliyev’s order dated June 18, 2019. As a result, the pensions of 94,000 citizens who, according to the law, are entitled to receive pensions under special conditions will increase by 31 percent on average.
The pensions of the people employed in various sectors are also recalculated and accordingly increased in connection with an increase in salaries in those sectors.
Thus, the second social package initiated by the president this year has contributed to a great increase in pensions for more than 750,000 citizens, which, in general, is another important step in strengthening social protection of the population.
(1 USD = 1.7 AZN on Aug. 15)