Azerbaijan, Baku, Dec 30 /Trend A.Akhundov/
According to preliminary calculations, 67 million manat will be required for the indexation of the insurance part of the labour pension in Azerbaijan in 2012, the chairman of the State Social Protection Fund of Azerbaijan Salim Muslimov told journalists on Friday.
"Some 97.3 per cent of the amount of pensions in Azerbaijan exceeds the poverty level of 98.5 manat. The logical result of pension reforms in 2011 was the fact that all retirees have an insurance part of pensions. And its share rose .by 8.3 per cent to 45 per cent. It shows that more resources to this process will be allocated this year as a result of indexation," Mr Muslimov said.
He said the State Statistics Committee should determine the rate of inflation in 2011 in order to determine the level of indexation.
"An appropriate order of the President is expected on January 1, under which we will increase the insurance part of pensions by multiplying it to the level of indexation," he said.
The indexation of pensions' insurance part in Azerbaijan was first held in 2007 at the rate of 8.3 per cent corresponding to inflation in 2006, in 2008 at a rate of 16.7 per cent, in 2009 at a rate of 20.8 per cent, in 2010 at a rate of 1.5 per cent.
The labour pension in Azerbaijan consists of two parts, base and insurance. Currently, the basic pension in the country is 85 manat.
Official exchange rate on Dec 30 is 0.7865 AZN/USD