Two percent of Azerbaijan social security deductions to be transferred
Azerbaijan, Baku, Feb.2 /Trend A.Akhundov/
It is expected to transfer two per cent of social security deductions to a bank account of an insurer in the first phase of savings component of the state programme's pension-insurance system development in Azerbaijan, chairman of the State Social Protection Fund of Azerbaijan Salim Muslimov told Trend.
Currently deductions for the employee's compulsory social insurance come from two sources, employers make deductions from the salary amounting to 22 per cent and three per cent is deducted from the employee's salary.
"We are currently conducting research projects on long-term planning of the pension insurance system in Azerbaijan together with the World Bank and the Overture Financial Ltd. Company. We have received a preliminary recommendation that the use of a two per cent savings component is appropriate to start," Mr Muslimov said.
He added that the legal framework for saving applications in Azerbaijan should be prepared before the end of 2013.
"Then the funds can be deployed as an investment, or through the AMF. It will also play an important role in the development of the country's financial market," Mr Muslimov said.