BAKU, Azerbaijan, September 28. The proposals on the mechanism for indexing the labor pensions of civil servants, military and special-ranked persons, as well as others getting additional benefits for long merit will be submitted for the Azerbaijani Parliament's discussion in accordance with the Presidential Decree of February 8, 2022, the Ministry of Labor and Social Protection of the Population of Azerbaijan told Trend.
The indexation is supposed to be implemented from January 1, 2023 following the bill amending the Law "On labor pensions".
After an additional payment of 10 percent to special monthly pensions and 200 manat ($117.49) of financial aid to other pensioners, the overall pension amount will be indexed in accordance with the annual growth rate of average monthly wages.
For example, the pension of persons receiving 400 manat ($234.98) and financial assistance of 200 manat ($117.49) during the year will be calculated at 416.7 manat, or $244.79 (400 + 200/12), and the indexation percentage will be enumerated according to this amount.
The single indexation system is supposed to ensure sustainable growth in pensions of persons retiring under special conditions. Thus, over the past ten years, the pensions of a vast majority of people from the mentioned category have increased by a maximum of 70 percent, whereas the pensions of retiring persons grew by 98 percent. The indexation and pension increase are conducted electronically.
Following the bill, the pension of persons receiving care allowance will also rise. Indexation will apply to all pension amounts – both the care allowance and the insurance part. The number of pensions will annually increase in a unified order – through indexation (the pension of care allowance recipients increased with an interval of roughly 3-5 years).
Furthermore, if civil servants, military servicemen, and other persons from this category have worked or left their jobs within 6 years after a pension was granted, the total amount of their pension will be recalculated and increased based on the accumulated capital. Meanwhile, the obligation to provide information on wage increases to pensioners, as well as in the institutions where they served, will be eliminated, and full electronic indexation of all pensions will be provided.
The bill doesn't apply to retirement conditions and its appointment in special circumstances.