OMM Newsroom
Azerbaijan is projecting a 7.5% increase in labor pensions in 2027. The pension indexation mechanism is also expected to change next year.
Azar Badamov, chairman of the Milli Majlis (National Assembly) Committee on Labor and Social Policy, said the 7.5% increase was an initial forecast, Operative Information Center-OMM reports.
He said the final indexation coefficient would be determined based on official data on growth in average monthly nominal wages.
The committee chairman recalled that labor pensions rose by 9.3% in 2026. The increase projected for next year is 1.8 percentage points lower.
Pension indexation rules may change
Under the proposed new mechanism, the full indexation coefficient would be applied to payments for people whose pensions are below the average monthly wage, Badamov said.
For people whose pensions are above the average monthly wage, different coefficients would apply to the portion exceeding that threshold. The aim is to strengthen social protection for citizens receiving lower pensions.
How would a 7.5% increase affect pensions?
If the 7.5% increase were applied to the full pension amount, payments could change as follows:
- 500 manat pension: It would rise by 37 manat and 50 qepik to 537 manat and 50 qepik.
- 600 manat pension: It would rise by 45 manat to 645 manat.
These calculations assume that the 7.5% increase is applied to the full amount. The final increase and details of the new indexation mechanism will depend on the official decision.
