In accordance with the Law "On Labor Pensions," the indexation and increase of labor pensions in Azerbaijan are applied from January each year. Although January pensions have already been fully paid, the absence of increases this month has raised questions among retirees. Member of the Milli Majlis (National Assembly) Vugar Bayramov has clarified the timeline for when these increases will be disbursed.
According to the Operative Information Center-OMM, the MP noted on his social media account that under existing legislation, pensions are indexed annually in accordance with the growth rate of the average monthly wage in the country for the previous year. Although the official growth percentage has not yet been formally announced, the pension increases are calculated effective from January.
Vugar Bayramov stated that based on the results of the first 11 months of 2024, the average monthly wage in Azerbaijan increased by 9.3 percent. This figure is expected to settle at approximately 9.2 percent for the full year. Precise official statistics will be released by the State Statistical Committee in early February.
The MP emphasized that for this reason, the indexation process will be carried out in the first days of February. Since the pension increases are calculated from January 1, retirees will receive both the increased pension for February and the additional amount calculated for January together in next month's payment. Consequently, citizens will receive their pension increases starting from next month.
Vugar Bayramov added that the indexation applies to all types of labor pensions. Under Article 4 of the Law "On Labor Pensions," the increase will be applied to the pension amounts of all citizens receiving labor pensions for old age, disability, and loss of the head of the family.
The indexation mechanism in Azerbaijan is a key component of the government's social protection strategy, designed to ensure that the purchasing power of retirees keeps pace with economic growth and inflation. By linking pension increases to the average wage growth, the state aims to maintain the social welfare of its citizens in line with the country's overall economic performance. This annual adjustment is part of broader social reforms initiated under the direction of President Ilham Aliyev to strengthen the social security system in the Republic of Azerbaijan.
