Azerbaijan, Baku, July 12 /Trend A.Akhundov/
In Azerbaijan, the coefficients can be applied to the basic part of pensions, depending on length of service, which will increase the interest of workers to legalize their work, Chairman of the State Social Protection Fund of Azerbaijan Salim Muslimov told reporters on Thursday.
"With our old system of calculating pensions men received the full amount of pension at the work experience of 25 years, women - 20 years, and if the experience was less, they got less. Today there is a need to implement something similar, so that the citizens were interested in registration of their work experience," Muslimov said.
He noted that it is one of the measures to combat illegal employment, and employers conceal of the real size of employees' salaries in Azerbaijan.
"In the coming days we will submit proposals to amend the Law on Social Insurance and Pensions to the Government to take drastic measures against illegal employment and the concealment of the real wage." Muslimov said.
He also did not rule out the possibility of complete elimination of the basic pension.
"There is another option - the total elimination of the basic pension, that is to send 100 percent of the social insurance fees for individual accounts and the sum divided by 144 (number of months in 12 years) and thus form a pension. There are various options that we consider" Muslimov said.
Pensions in Azerbaijan consist of two parts - basic and insurance. The basic part of the pension is 85 manat.
Official exchange rate on July 12 is 0.7855 AZN/USD.