OMM Newsroom
Labor pensions in Azerbaijan will be increased in 2027 in line with the nominal growth in the country’s average monthly wage in the previous year. Different coefficients are expected to be applied in pension indexation from next year.
"Operativ Məlumat Mərkəzi-OMM" member of the Milli Majlis (National Assembly)’s Economic Policy, Industry and Entrepreneurship Committee Vugar Bayramov said, Operative Information Center-OMM reports.
Under current legislation, labor pensions are indexed every January in line with the nominal percentage increase in the country’s average wage in the previous year, the MP said.
He said the average monthly wage growth figure for 2026 would be finalized toward the end of the year. The relevant official data is expected to be released in February 2027:
“The specific percentage increase in pensions will also be determined on the basis of that figure. Under the new mechanism, different coefficients will be applied during indexation depending on the pension amount. The approach is intended to ensure that citizens receiving relatively lower pensions get a larger increase than those receiving higher pensions.
The new rule is expected to apply to all types of labor pensions: those granted for old age, disability and the loss of a breadwinner.
Although the pension increase percentage for 2027 is not yet known, the main figure used to calculate it will be the nominal growth in the average monthly wage in 2026. Applying different coefficients will affect the size of the increase according to the pension amount.” (Baku.vs)
