BAKU, Azerbaijan, February 5. A new decree issued by President of the Republic of Azerbaijan Ilham Aliyev has indexed and boosted all types of pensions in the country by 11.2 percent, Trend reports, referring to the Azerbaijani Ministry of Labour and Social Protection of the Population.
The new decree "On indexation of labor pensions" is another continuation of consistent steps to strengthen the social protection of pensioners and increase pensions.
According to information provided by the State Statistics Committee, all pensions assigned by the decree until January 1, 2024, shall be increased from January 1 of this year by indexation by 11.2 percent following the annual growth rate of the average monthly nominal wage as of 2023.
An increase from the beginning of the current year is also envisaged in the amounts of pensions to which seniority allowances were assigned, set together with these allowances, and material assistance included in pensions from January 1, 2023, with indexation to the specified amount.
The increase is carried out automatically through the electronic system, and pensioners do not need to present any documents or submit an application.
Pension increases for January will be paid together with the pension for February.
For example, if a pension is 500 manat, this amount will be increased by 11.2 percent (i.e., 56 manat) from January 1 this year. The January bonus of 56 manat will also be added to the February pension and will be paid together with it.
About 630 million manat per year will be additionally spent on the increase, which covers a total of 1.1 million pensioners.
Meanwhile, the increase in pensions by indexation has been applied to all types of pensions since the beginning of last year.
The current increase will also affect pensioners who are entitled to a pension, both on general grounds and those who receive an increase for length of service (military servicemen, law enforcement officers, etc.).
The increase in indexation exceeds the average inflation rate in 2023 (by 8.8 percent).
Simultaneously, the order also increased pension capital registered until January 1, 2024, on personal accounts of insured persons per the annual level of the consumer price index for the previous year, with indexation by 8.8 percent. For instance, if 50,000 manat of pension capital has been accumulated on the personal account, this amount will be increased by 8.8 percent, i.e., by 4,400 manat (up to 54,400 manat).
This also demonstrates that pension capital accumulated on individual accounts of working persons is regularly increased not only based on monthly social insurance deductions from their salaries but also based on indexation by the state at the beginning of each year," the ministry informs.
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