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Over $330 mln to be required to finance allowances for labor pensions for term of service in Azerbaijan

Business Materials 24 November 2012 17:28 (UTC +04:00)

Azerbaijan, Baku, Nov. 24 / Trend A. Akhundov /

Over 260 million manat will be required to finance allowances for labor pensions for term of service in Azerbaijan in 2013, Chairman of the Azerbaijani State Social Protection Fund Salim Muslimov told Trend today.

"According to Article 20 of the law on labor pensions, servicemen, individuals having special titles, state servants, employees of the prosecutor's office, judges, members of the Central Election Commission, employees of the justice system and others receive allowances for term of service besides insurance and basic pensions," he said. "This category of people covers about 60,000 people. According to our estimates, it is planned to allocate 260-261 million manat for these allowances in 2013."

He said that over 62 million manat will be required to increase the basic part of labor pensions of certain categories of people in 2013.

"Article 19 of the law envisages an increase in the basic part of labor pensions of Azerbaijani national heroes, families of national heroes, martyrs, veterans of the Nagorno-Karabakh conflict and the Second World War, war-disabled persons, victims of political repression, and later rehabilitated, as well as those of several other categories," he said. "Around 48.8 million manat are planned to be allocated. The basic pension of the first group invalids will be also increased by 20 percent, the visually impaired of the first group - by twice. Around 12.5 million manat are planned to be allocated to increase the basic pension of these groups in 2013."

He added that around 770 million manat will be allocated in 2013 to finance pensions of people who retired before April 1, 1997, that is before the law on social insurance entered into force.

"These people did not pay anything into the system or made payments in a period less than five years," he said. "This means that according to the existing legislation, they are not entitled to get pensions. However, pensions are given to them. This group includes 394,000 people. If the average monthly pension is projected at 163 manat in 2013, around 770 million manat will be required to finance their pensions in 2013."

The transfers from the state budget to the Azerbaijani Social Protection Fund in 2013 are projected at 1.077 billion manat, while some 1.044 billion manat were allocated from the state budget in 2012.

Azerbaijani Social Protection Fund's revenues and expenditures for 2013 are forecast at 2.633 billion manat, or 7.29 percent more than the figure for 2012
The official exchange rate is 0,7849 AZN/USD as of Nov. 24.

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