Azerbaijan to raise wages and pensions, lawmaker says

“Operative Information Center-OMM” reports that economist and Milli Majlis member Vugar Bayramov made the remarks.

He said minimum wage increases in Azerbaijan would become regular:

“Under the change approved by the head of state in February 2026, the minimum wage is expected to increase by February 2027. Amendments to the Labor Code adopted last year provide for the minimum wage in Azerbaijan to be reviewed at least once a year.”

The lawmaker said all types of labor pensions are also due to be indexed and increased starting in January next year:

“This will cover 1.1 million citizens. The indexation is expected to be carried out on a differentiated basis, in line with the amendments currently under discussion. The proposed change envisages expanding a model in the pension system based on social contributions. Under the current rules, pensions are indexed to the percentage increase in the average monthly wage in the previous year. The same measure will remain the criterion, but the approach will be differentiated.”

“In 2027, spending on the social sector will account for 44 percent of total state budget expenditures. This means that more than 18.5 billion manats will be allocated to the sector. This is an indication of a new social package.”

Minimum wage reviews and pension indexation are among the measures through which Azerbaijan adjusts incomes and social support. The proposed allocation figures cited by Bayramov reflect the planned scale of social-sector spending in the 2027 state budget.