Good news for pensioners: Next week…
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According to the legislation, pensions are increased once a year, and this happens in January of the following year. Annual indexation of labor pensions is a requirement of the Law on Labor Pensions. This is a matter that a citizen is entitled to by law.
Axar.az reports with reference to Unikal.az that this was stated by Deputy Ali Masimli.
According to him, the time has come to increase pensions in accordance with the procedure established by law:
A decree will be issued during the first decade of February regarding how much pensions will be increased. According to the requirements of paragraph 1 of Article 29 of the Law on Labor Pensions, the insurance part of the labor pension is indexed once a year in accordance with the annual growth rate of the average monthly nominal wage in the country. This means that the increase in pensions is carried out in accordance with the average monthly wage growth rate for the previous year announced by the State Statistics Committee. In 2025, labor pensions were increased by 8.1 percent in accordance with the nominal growth indicator of the average monthly wage for 2024 announced by the State Statistics Committee. According to the same procedure, this year labor pensions will be indexed at a level corresponding to the average growth rate of the average monthly wage in 2025. There is no finalized figure for this increase yet. According to the State Statistics Committee, the average wage increased by 9.3 percent in January-November 2025 compared to January-November 2024. Official statements suggest that there will be an increase of between 9-9.2 percent. The exact percentage of the increase will be known next week, i.e., in early February. As soon as the State Statistics Committee announces the average annual growth rate of the nominal wage for 2025, a special Presidential decree will be issued in early February to increase the insurance part of all types of labor pensions established until January 1, 2026, in accordance with that indicator.
The deputy stated that after indexation, it is expected that the pensions of up to half of the pensioners, who received pensions at the median pension level last year, i.e., around 360 manats, will increase by approximately 33 manats to 393 manats, and the pensions of those receiving pensions around the average pension of 543 manats will increase by approximately 50 manats to 593 manats:
In accordance with the requirements of the Law on Labor Pensions, the pension increase will apply to all three types of labor pensions, i.e., old-age, loss of head of family, and disability labor pensions. Based on this, it is expected that the pension increase will cover 1.1 million pensioners. Since the average annual growth rate of wages for 2025 is not yet known, pensioners received pensions in the same amount in January of this year. Pensioners will receive their increased pensions for January-February, including the January increase, together in February. That is, the pension of a pensioner with a pension of 400 manats will increase by about 37 manats to 437 manats. But in February, he will receive 474 manats by receiving both the January and February increases together. Starting from March, he will receive a pension of about 437 manats.”
Ə.Məsimli noted that according to the requirements of Article 29.1-1 of the Law on Labor Pensions, the pension capital recorded in the insurance part of the insured person’s individual personal account is indexed once a year in accordance with the annual level of the consumer price index, i.e., inflation:
In 2025, the pension capitals in individual personal accounts were indexed and increased at the level of 2.2 percent, which was recorded as the official inflation indicator. According to the aforementioned law, in 2026, the pension capital recorded in the insurance part of the insured person’s individual personal account will be indexed at the level of the official inflation indicator of 2025. This figure is already known. In 2026, the pension capital recorded in the insurance part of the insured person’s individual personal account will be indexed at the level of 5.6 percent. Currently, a minimum pension capital of 46,080 manats or 25 years of work experience (with the exception of persons who were granted old-age labor pensions before July 1, 2017) is required for a pension provision of 320 manats. The funds of a citizen with a minimum pension capital of 46,080 manats in his individual account and receiving a minimum pension will be increased by 2,580 manats to 48,660 manats this year, and the funds of a pensioner with 60,000 manats in his individual account will be increased by 3,360 manats to 63,360 manats, etc. Thus, this year the increase in labor pensions will be around 9 percent, and the increase in the pension capital in citizens’ individual accounts will be 5.6 percent. The increases made to pensions for January will be paid together with the February pension.”