OMM Newsroom
Pensions in Azerbaijan are expected to be indexed and increased in 2027, while the minimum wage is also set to rise. More than 17 billion manats is forecast to be allocated to social spending.
The Operative Information Center-OMM reports that next year’s pension increase is expected to cover about 1.1 million people. The adjustment will be calculated in accordance with legislation.
How will pensions increase?
MP Vugar Bayramov said pensions would be increased through indexation starting in January 2027.
Under the Law on Labor Pensions, pensions will be indexed in line with the percentage increase in the average monthly wage in 2026.
This means the increase recorded in the average monthly wage in 2026 will be one of the key indicators used to calculate next year’s pension adjustment.
Calculation and payment of the new indexed pension amounts will begin in January 2027.
Which pensioners will benefit from the increase?
The increase is expected to cover people receiving age-based pensions, as well as those receiving disability pensions and pensions following the loss of a breadwinner.
Overall, the pension increases are expected to apply to about 1.1 million people.
Minimum wage also set to rise
The minimum wage is also expected to increase in 2027.
Bayramov said funding for this measure had been factored into both the state budget and the budget of the State Social Protection Fund.
The MP said amendments to the legislation adopted in February this year provide for the minimum wage to be increased at least once a year.
He said the change gives grounds to expect the minimum wage to rise by February 2027.
More than 17 billion manats for social spending
More than 17 billion manats is forecast to be allocated to social spending in 2027.
At the same time, about 42 percent of state budget spending is expected to go toward economic activity, defense and national security.
Spending on economic activity is forecast at 8.891 billion manats next year, equivalent to about 21 percent of total state budget expenditures.
Thus, the main social policy changes expected in 2027 are the indexation of pensions and an increase in the minimum wage. The exact pension increase will be set once the figure for growth in the average monthly wage in 2026 is known. (ATV Xəbər)
