Minister: New concept on forecasting Azerbaijan’s pension system to be ready by end-2019(Exclusive)

Business Materials 5 March 2019 14:39 (UTC +04:00)

Baku, Azerbaijan, March 5

By Matanat Nasibova - Trend:

The reform process in general, and in particular in the field of ensuring pensions, continues at a high level, and the most important steps taken as part of Azerbaijan’s state policy are vivid evidence of this, Azerbaijani Minister of Labor and Social Protection of the Population Sahil Babayev told Trend.

The minister noted that during the year a new concept will be ready, which will form and forecast the pension system of Azerbaijan until 2030, 2040, 2050 and beyond.

“The concept is being prepared as part of reforming the pension system in Azerbaijan,” he said. “In the future, we want to introduce the next two levels of pension systems that are widely used in international practice. To this end, we have attracted local and foreign experts.”

The minister reminded that last year the Azerbaijani president adopted a historic law that allowed ensuring the amnesty of insurance experience for citizens until 2006.

“This gave us the opportunity to automate the allocation of a pension in Azerbaijan from Jan. 1, 2019, and today we have already met with a five-thousandth pensioner who received his pension online,” he said. “Undoubtedly, this is a significant reform, and such practice exists in a very small number of countries. I think that in this regard we will be one of the best examples in terms of organizing the system for granting pensions. But our reforms don’t stop there, as you know, the head of state appointed a minimum pension in Azerbaijan in the amount of 160 manats, which is higher than the subsistence level, so this step will help us improve the lives of our pensioners.”

On March 1, 2019, the average minimum labor pension in Azerbaijan increased by 38.5 percent and amounted to 160 manats.

Previously, the minimum size of labor pensions was 116 manats.

The increase in the minimum size of pensions covered 233,000 pensioners, including 140,000 persons receiving a disability pension.

As many as 49 million manats were allocated to finance the increase of pensions from the State Social Protection Fund of Azerbaijan.

Over the past 15 years, the increase in labor payments in Azerbaijan has been carried out seven times and the minimum amount of labor pensions has increased 6.5 times.

(1.7 manats = 1 USD on March 5)