Pension indexation mechanism is being improved.
elchi reports that this is reflected in the draft law on amendments to the laws “On State Tax Authorities”, “On Labor Pensions”, “On the Status of Military Personnel”, “On Military Service”, “On Labor Pensions”, and “On Military Duty and Military Service” dated December 22, 2023, No. 1074-VIQD, and “On Diplomatic Service”, which was discussed at today’s Milli Majlis session.
The new reform measures are aimed at establishing a more comprehensive, fair, and optimal pension indexation mechanism. For this purpose, it is envisaged that pensions up to the average monthly salary (1176.7 manats as of August 1, 2026) will be indexed with the full indexation percentage applied annually, and for pensions exceeding the average monthly salary, the higher portion will be indexed by applying coefficients of 0.2-0.5.
Considering that more than 90 percent of pensioners currently have pensions up to the average monthly salary, this new mechanism will not apply to them, and their pensions will be indexed and increased according to the previous rules, i.e., with the full indexation percentage applied. For other pensioners (about 10 percent), the portion of their pensions up to the average monthly salary will also be indexed and increased with the full indexation percentage applied, and the new mechanism (coefficients of 0.2-0.5) will only be applied to the portion of their pensions that exceeds this amount.
After discussions, the issue was put to a vote and adopted in the first reading.