President Ilham Aliyev has signed a decree "On the indexation of labor pensions," marking a significant increase in social welfare payments across Azerbaijan. According to the decree, all labor pensions assigned prior to January 1, 2026, will be indexed and increased by 9.3 percent effective from January 1 of this year, in accordance with the annual growth rate of the average monthly salary for 2025.
In a statement to the Operative Information Center-OMM, Member of the Milli Majlis (National Assembly) Vugar Bayramov explained that the indexation is carried out in accordance with the Law "On Labor Pensions." Under the current legislation, all types of labor pensions are indexed annually based on the percentage growth of the average monthly nominal wage recorded in the country during the previous year.
The lawmaker emphasized that the indexation applies to all categories of labor pensions without exception. According to Article 4 of the Law "On Labor Pensions," there are three primary types: old-age labor pensions, disability labor pensions, and pensions for the loss of a family head. This ensures that all citizens receiving a labor pension, regardless of the specific category, will see an increase in their monthly payments. Vugar Bayramov noted that since the indexation is based on the previous year's indicators, the increase will apply to all citizens who gained pension rights by December 31, 2025, covering approximately 1.1 million citizens in Azerbaijan.
This move is part of the ongoing social reform package implemented by the government of Azerbaijan to strengthen the social protection of the population. The systematic indexation of pensions serves to protect the purchasing power of retirees against inflationary pressures and ensures that social security benefits keep pace with the overall economic growth and wage increases in the Republic.
