OMM Redaksiyası
Azerbaijan is expected to index and increase pensions and raise the minimum wage in 2027. More than 17 billion manats is projected to be allocated to social spending.
“Operative Information Center-OMM” reports that next year’s pension increase is expected to cover approximately 1.1 million citizens. The increase will be calculated in accordance with legislation.
How will pensions be increased?
MP Vugar Bayramov said pensions would be indexed and increased starting in January 2027.
Under the Law on Labor Pensions, pension indexation will be carried out in line with the percentage increase in average monthly wages in 2026.
In other words, the percentage increase recorded in average monthly wages in 2026 will be one of the key indicators used to index pensions the following year.
The calculation and payment of newly indexed pension amounts will begin in January 2027.
Which pensioners will benefit from the increase?
The increase is expected to cover people receiving old-age pensions, as well as those receiving disability pensions and pensions for the loss of a breadwinner.
Overall, pension increases are expected to apply to approximately 1.1 million citizens.
Minimum wage is also expected to increase
The minimum wage is also expected to rise in 2027.
According to Vugar Bayramov, expenses related to this measure have been included in both the state budget and the budget of the State Social Protection Fund.
The MP said amendments to legislation adopted in February this year provide for the minimum wage to be increased at least once a year.
According to him, this amendment provides grounds to expect an increase in the minimum wage by February 2027.
More than 17 billion manats projected for social spending
More than 17 billion manats is projected to be allocated to social spending in 2027.
At the same time, approximately 42% of state budget spending is expected to be directed toward economic activity, defense and national security.
Next year’s spending on economic activity is projected at 8.891 billion manats. This amount represents approximately 21% of total state budget expenditures.
Thus, the main changes expected in the social sphere in 2027 are the indexation of pensions and an increase in the minimum wage. The exact percentage increase in pensions will be determined after the average monthly wage growth figure for 2026 is established. (ATV News)
