Basic part of labor pension in Azerbaijan to increase by 20 percent in 2013
Azerbaijan, Baku, October 30 /Trend A.Akhundov/
Basic part of labor pension in Azerbaijan, which today is 85 manat, can grow by 15-20 percent in 2013, chairman of the State Social Protection Fund (SSPF) Salim Muslimov told reporters on Tuesday.
"Today, all measures aimed at bringing all workers to compulsory social insurance and legalization of money wages. Steps in this direction will increase the amount of fees for social insurance by 150 million manat, or by ten percent in 2013," Muslimov said.
He added that it will be possible to ensure the growth of the basic pension and the insurance part through this growth.
"Charges for social insurance are growing at a good pace, and if these growth rates continue, sufficient financial resources will be established to enable appeal to the government for increasing the basic pension," the head of the State Fund said.
He noted that the social benefits paid by the Fund will increase due to the increase of the base part and the expected salary growth next year.
According to forecasts, the transfers from the state budget in the next year will increase by 33 million manat to the level of 1.077 billion manat.
"It is a small increase, and therefore the share of transfers from the state budget to the income of the Fund will decline from 42 percent to 40 percent. It became possible due to the growth of fee deductions for social insurance," Muslimov said.
Currently, 22 percent of contributions paid by the employer from the salary fund, three percent is withheld from employees' wages.
Official exchange rate on October 30 is 0.7850 AZN/USD.