As of 1 July 2011, in accordance with the amendments to the Labour Pensions law, pension benefits will increase by an average 40 per cent for those who retired before 1 January 2010. The increase will be based on the recalculation of current pensions, taking into account the period of coverage before 1 January 2006. This improvement will affect around 845,000 pensioners.
In the country there are three types of labour pensions: old-age, disability and survivor pensions. Reportedly, the total number of labour pensions' beneficiaries is 1,280,788 persons, of which 63.9 per cent receive old-age pensions, 25.7 per cent, disability pensions and 10.4 per cent, survivor pensions.
It is estimated that this increase will require additional financing in the amount of 390 million Azerbaijanian manats (AZN) a year.
Moreover, in line with the above amendments, special supplements will be paid to 5,910 pensioners with scientific degrees. This measure will cost AZN10 million a year.
Implementation date: 07.2011