Azerbaijan, Baku, May 4 / Trend , U.Ismayilova/
Labor pensions in Azerbaijan will be increased in January 2010, Head of the State Social Protection Fund (SSPF) Salim Muslimov said. Under the Azerbaijani Law on "Labor Pension", a basic part of labor pensions must be increased at least in one year.
Muslimov said there will not be any problem with timely payment of labor pensions, despite temporal suspensions of the country's some enterprises due to difficulty to sell production for the lack of circulating funds.
"The reserves were accumulated at the fund due to payment of 2009 financial sanctions which were imposed on foreign employees of the Azeri-Chirag-Guneshli field," Muslimov said. "And these funds can be used to finance labor pensions in the case of necessity."
In Azerbaijan, funds to finance labor pensions are formed as a result of payments on obligatory social insurance and due to transfers from public budget. At present there are over 70,000 payers of social insurance in the country.
Some 93.5 percent of the fund's expenses will be directed to pay labor pensions in 2009. Assignments from obligatory social insurance are forecast at 1.278 billion manat which is by 25.4 percent more than in 2008. The public budget will transfer 495 million manat to the fund (a 28.6-percent increase).
Expenses of the fund are forecast at 1.775 billion manat.
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