Azerbaijan introduces monthly pension supplements and new calculation methods

Azerbaijan is implementing changes to the Law on Labor Pensions, introducing monthly fixed supplements for specific categories of citizens. According to Milli Majlis Deputy Vugar Bayramov, these supplements will apply to labor pensioners who have reached retirement age or those with disabilities (81-100% functional impairment).

The fixed additions are designated for various high-ranking officials and former state employees, including former Vice Presidents, Prime Ministers and their deputies, heads of local executive powers, members of the Media and Broadcasting Council, and former deputies and ombudsmen who meet specific service requirements.

Furthermore, the pension calculation method for civil servants, military personnel, and those receiving pensions based on terms of office will change. Instead of being directly tied to their last salary or benefit expenditure, pension amounts will be determined based on the pension capital recorded in an individual's account. The amount of the monthly supplement for civil servants will depend on their administrative classification, while military personnel will receive amounts based on their military ranks.

A new proactive system will also be introduced, allowing pensions and supplements to be assigned automatically through electronic systems without requiring citizens to apply to state institutions. Additionally, the mechanism for indexing labor pensions and pension capital will be improved through a differential indexing approach based on the amount of the pension or capital.