Pensions have been increased and additional financial assistance has been provided to retirees

The insurance part of labor pensions set by the new order until January 1, 2022 will be indexed in accordance with the growth rate of the average monthly nominal salary for 2021 and will be increased from January 1, 2022, and the January increase will be paid together with the February pension.

According to the State Statistics Committee, the annual growth rate of the average monthly nominal wage in 2021 was 3.4 percent.

Along with this increase, according to the Order, it is planned to provide financial assistance to pensioners in the amount of 200 manat by 2022 on the principle of insurance. These funds will be paid to retirees on a quarterly basis, and the initial payment will be made together with the February pensions. Pensions will be paid this week with new increases.

Thus, the increase will be about 9 percent of the average monthly amount of pensions in the country. This increase will be up to 10% for those receiving a pension of up to 300 manat, and 7-8% for those receiving a higher pension.

The indexation and financial assistance established by the order exceed the average inflation rate in 2021 (6.7%), which is another clear example of state support for pensioners.

Indexed increase of pensions from the beginning of 2022 and the provision of financial assistance will cover 92% of retirees or 1.1 million people, and for this purpose will be spent an additional 352 million manat per year.

It is planned to include this financial assistance in the annual pensions of retirees from the beginning of 2023. Relevant legislative acts in this regard will be submitted to the President soon.

At the same time, in accordance with the annual level of the consumer price index, the pension capital of the insured part of the individual accounts of the insured is increased by 6.7 percent indexation. This shows that the pension capital in the personal accounts of persons working under an employment contract is increased not only by monthly social insurance contributions from their salaries, but also by the state indexed at the beginning of each year.

The new order also covers those who have been awarded a supplementary pension for length of service. The President instructed the Cabinet of Ministers to submit proposals to increase the pensions of this category of pensioners by indexing, as well as to provide financial support for 2022 within a month.

It should be noted that 99,000 people have been awarded pensions based on length of service, and most of them are retired servicemen, law enforcement officers, civil servants and others. consists of. According to the current legislation, annual indexations do not apply to the total amount of pensions of this category of pensioners, as their pensions are formed outside the insurance principle. The new order will allow these people to receive state support in 2022 and increase the total amount of pensions every year.