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Pensions increased by 16.6%

6 february 2020, 15:40
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Pensions increased by 16.6%

The Order of the President of the Republic of Azerbaijan, Mr. Ilham Aliyev, “On indexation of labour pensions”, dated 6 February 2020, is another important step towards enhancing the social protection of pensioners. According to the Order, the insured part of all types of labour pensions is increased for 16.6% in accordance with the annual growth rate of average monthly nominal wages as of January 1, 2020, established by the State Statistical Committee for 2019.

This growth is the continuation of successful social reforms provided last year's revolutionary steps in increasing social payments and provision of substantial support for the welfare of 4.2 million citizens according to the instruction of the President of the Republic of Azerbaijan Mr.Ilham Aliyev.

As the implementation of the Order, growth of pensions by 16.6 % due to indexation according to the annual growth rate of average monthly wages for 2019, will cover all pensioners (93% of pensioners or about 1,120,000 pensioners). It is planned additionally to spend about 560 million manat per year, 47 million manat monthly of funds. These funds will be financed through the income of the State Social Protection Fund under the Ministry of Labour and Social Protection of Population.

After this increase, the average monthly pension will increase from 262 to 300 manat.

The increase will apply from January 1, 2020, and the January increase will be paid with the February pension. For example, if the person's pension is 400 manat, this amount will be increased to 16.6 percent from January 1, to 466.4 manat, and this amount of 66.4 manat will be paid in February, i.e. 532.8 manat (466.4 + 66.4).

In addition, according to the annual level of Consumer Price Index set by the State Statistical Committee, the amount of pension capital recorded in the insured part of personal account is also increased by 2.6% from January 1.

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