Pensions are being indexed and increased by 9.3 percent under the new Decree signed by President Ilham Aliyev

An additional 640 million manats per year have been allocated for this increase, which has been applied since the beginning of the year.

President Ilham Aliyev’s new Decree “On the Indexation of Labor Pensions” creates another important opportunity to strengthen the social protection of pensioners and increase pensions.

Under the Decree, all pensions assigned by the Ministry of Labor and Social Protection of the Population until January 1, 2026, are being indexed by 9.3 percent as of January 1 of this year, in line with the annual growth rate of the average monthly salary for 2025, based on data provided by the State Statistics Committee.

This increase is implemented automatically through the electronic system, without the need for pensioners to apply or submit any documents.

The increases made to pensions for January will be paid together with the February pension. That is, pensioners will receive their February pension with the new increase, along with the additional amount corresponding to the January increase.

The indexation applies to all pensioners (including retired military personnel, law enforcement officers, and others), covering 1.1 million pensioners. An additional 640 million manats per year have been allocated for these increases.

Under the President’s Decree, pension capital recorded in the individual accounts of insured persons until January 1, 2026, is also being indexed and increased by 5.6 percent in line with last year’s annual consumer price index.

This annual increase, applied at the beginning of each year, demonstrates that the pension capital of individuals participating in the social insurance system is increased not only through social insurance contributions deducted from their salaries, but also through annual indexation by the state.