According to the Decree of the President of the Republic of Azerbaijan dated February 8, 2022, the proposals on the mechanism of increasing the pensions of labor pensioners (civil servants, military and special-ranked persons, etc.) who receive additional benefits based on length of service will be discussed in the Milli Majlis.

According to the draft amendment to the Law "On Labor Pensions" prepared by the Ministry of Labor and Social Protection of the Population, from January 1, 2023, the mechanism of indexation and increase of all types of pensions will be applied.

According to the information provided by the Ministry to APA, after the 10% paid to the monthly pensions of persons receiving pensions under special conditions, as well as 200 manat financial assistance paid to other pensioners during the year, the final pension amounts will be indexed according to the annual growth rate of the average monthly salary.

For example, the pension amount of a pensioner who receives a pension of 400 manats and financial assistance of 200 manats during the year will be accepted as 416.7 manats (400+200/12) from the new year, and an increase of the indexation percentage will be calculated.

Also, the pension received by a military serviceman under special conditions during the current year, for example, 800 manat pension and 10% financial aid will be collected and will be accepted as 880 manat, and an increase of the indexation percentage will be calculated.

The introduction of a single indexation mechanism will ensure a continuous increase in the pensions of retired persons under special conditions.

Thus, in the last 10 years, the pension of the vast majority of persons from this category has increased by a maximum of 70%.

As a result of indexation, the pensions of people who retired on a general basis increased by 98% during this period.

Pensions are indexed and increased electronically.

The increase of pensions under special conditions with this method will make it possible to ease the administration of the relevant institutions in this area, and to eliminate the obligation to provide any information related to the salary increase.

Thus, after the adoption of the project, the pension of persons receiving care allowance will increase more than under the current mechanism.

Indexation will apply to all pension amounts - both the maintenance allowance and the insurance part;

the amount of pensions will be increased every year in a uniform manner - by indexing (the pension of those who received a care supplement increased with an interval of approximately 3-5 years);

if civil servants, military servants and other persons of this category work for 6 years or quit their jobs after the appointment of pensions, the total amount of their pensions will be recalculated and increased based on the accumulated capital;

the obligation to provide information on salary increases for pensioners and institutions where they served will disappear;

indexation of all pensions will be done completely electronically.

This project does not apply to retirement conditions and appointment under special conditions.