Azernews.Az

By Sara Israfilbayova

The average monthly size of labour pension in Azerbaijan increased by 5.2 percent, the Ministry of Labour and Social Protection of the Population reported.

Thus, on July 1 the size of the pension reached 219.15 manats ($128.9), moreover the size of the pension by the age increased and reached 246.36 manats ($144.9).

By the order of President Ilham Aliyev, the total amount of labour pensions was reindexed in accordance with the growth rate of the average nominal wage in 2017.

Along with this, the insurance part of the pension capital in the private accounting system of citizens has been recalculated.

As of for July 1, 2018, the number of pensioners in Azerbaijan is 1.311 million people.

Azerbaijani President Ilham Aliyev on May 2, 2017 approved amendments to the law “On Labour Pensions”.

The amendments provide for the elimination of the concept of the basic part of the labour pension and the 12-year service required for the appointment of a pension, as well as the gradual increase in the retirement age for women and men up to 65 years.

The retirement age will increase every six months until 2021 for men, until 2027 for women. In view of the elimination of the concept of “basic part of the pension”, the law introduces the concept of “minimum pension”. The size of the minimum pension from January 1, 2017 is 110 manats ($64.7).

Another change is connected with the compulsory social insurance. So, now 90 percent of the deductions paid by employee on compulsory state social insurance will be reflected in his/her account.

Deductions are formed from two sources: the deductions made ​​by the employer in the amount of 22 percent of the salary fund of the enterprise, and the deductions worth 3 percent of the employee’s wage. Formerly, only 50 percent of these deductions were reflected in employee’s account.

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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is

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