Over 617,000 pensioners to receive rise in pensions in Azerbaijan
Azerbaijan, Baku, Feb. 17 / Trend U.Ismayilova /
Indexation of pensions insurance in Azerbaijan will cover 617,347 retirees, Azerbaijani State Social Protection Fund (SSPF) reported citing its Chairman Salim Muslimov.
Indexation of insurance part of labor pensions will be carried out in line with inflation rate at 5.7 percent as of 2010.
Indexation of insurance part of pensions in Azerbaijan was first held at a rate of 8.3 percent inflation as of 2006 in 2007, 16.7 percent in 2008, 20.8 percent in 2009 and 1.5 percent in 2010.
In general, indexation of insurance part of pensions will require approximately 1.4 million manat for a month and 18 million manat for a year.
"The SSPF will allocate these funds from its budget and the fund has no problems with financing the indexation. Thus, following the indexation average monthly retirement pension will amount to 114 manat," Muslimov said.
In February 2008, Azerbaijani President Ilham Aliyev signed a decree on the pension insurance indexation based on the previous year's inflation rate.
Pension consists of two parts - basic and insurance in Azerbaijan. Currently, the basic pension is 85 manat in the country.
As of Jan. 1, 2011, the country has 1.201 million pensioners, representing 14 percent of the population of Azerbaijan.
The official exchange rate is 0.795 manat to $1 on Feb. 17.