Azerbaijan, Baku, March.09 / Trend U.Ismayilova / A.Huseynbala/
Increasing the minimum pension in Azerbaijan in 2010 will depend on the level of income to the State Social Protection Fund (SSPF) of Azerbaijan from payments on compulsory social insurance, the head of the Fund
Salim Muslimov said today.
"Social Fund of Azerbaijan currently undertakes measures to ensure the effective flow of funds from payments on compulsory social insurance," Muslimov said.
According to him, the activity is connected with the legalization of wages, registration of the working population.
"25 percent of deductions (the amount of payments on compulsory social insurance in Azerbaijan) from the salary fund may create a reserve for increasing the level of pensions in the country," Muslimov said.
The minimum pension in Azerbaijan totals 75 manat. Azerbaijan uses a new mechanism for calculating pensions depending on period of labor activities from Jan.01, 2010. Under the new mechanism, in the future pensions will be provided only to people who have 10 years of labor activities, and other people will receive other social benefits.
Number of retirees in 2009 increased by 27,000 up to 1.302 million people, of which 59 percent who retired for age, 35 percent for disability, six percent for loss of household head.
As of the end of 2009 the average monthly pension amounted to 100.4 manat. The share of pensions in GDP was 5.3 percent in 2009, which is the highest rate in the independence period of Azerbaijan and this means excess of five percent strip, recognized in the international level.
March.09, the official exchange rate is 0.8034 manat to $1.
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