Weekly economic review (Jan. 23-27)

Analysis Materials 30 January 2017 14:43 (UTC +04:00)

Labor pensions in Azerbaijan to be counted differently

The system of setting the labor pension amount will be changed in Azerbaijan, Salim Muslimov, Azerbaijani minister of labour and social protection of population, said at a press-conference in Baku.

Muslimov added that the bill has been submitted to the Azerbaijani parliament and soon it will be discussed in the relevant committees.

The minister added that the concept of the basic part of labor pensions and a 12-year-service required for assigning a pension are planned to be eliminated as part of the changes.

At present, there are 50 percent of social insurance premiums on the individual accounts of each insured person which are being paid off and the insurance part of the pensions is set on the basis of that amount.

The rest 50 percent of insurance premiums are spent to cover the general expenses of the system, as well as to finance the basic part of labor pension set in equal amounts for pensioners.