Azerbaijan, Baku, Feb.2 /Trend A.Akhundov/
In Azerbaijan, it is time to change the ratio between deductions for Social compulsory insurance paid by employers and employees to the State Social Protection Fund, chairman of the State Social Protection Fund of Azerbaijan Salim Muslimov told Trend.
"Provision was made in the state programme to develop the pension insurance system in Azerbaijan during 2009-2015 years and it's time to start the process. It's already being done in neighbouring countries at the moment. For example, in Kazakhstan it ranges from 10 per cent from 21 per cent of the deducted account for employees," Mr Muslimov said.
Currently, deductions for compulsory social insurance of the employee are formed from two sources, employers make deductions amounting to 22 per cent and three per cent is deducted from the employee.
Mr Muslimov noted that it is expected to increase interest charges paid by the employee from the current three to five per cent, and reduce the proportion of employers input from 22 to 20 per cent respectively in the first phase.
"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. They will make proposals on the terms the process in the near future." Mr Muslimov said.