Labor pensions in Azerbaijan are set to be indexed following a new presidential order.
Operative Information Center-OMM reports that President Ilham Aliyev has signed a decree regarding the indexation of labor pensions to enhance the social welfare of citizens.
According to the decree, the Ministry of Labor and Social Protection of the Population is instructed to carry out the indexation of the insurance part of labor pensions assigned until January 1, 2026. This adjustment will be conducted in accordance with the annual growth rate of the average monthly nominal wage for 2025, as determined by the State Statistical Committee. Furthermore, the decree mandates the indexation of pension capital recorded in the insurance part of individual personal accounts of the insured, as well as financial assistance included in pensions since January 1, 2023, based on the annual level of the consumer price index.
This initiative is part of the ongoing social reform strategy in Azerbaijan, designed to ensure that the purchasing power of retirees is maintained against economic fluctuations. By linking pension increases to both wage growth and inflation rates, the government aims to provide a sustainable mechanism for social security. The Cabinet of Ministers has been tasked with resolving all administrative and legal matters arising from this decree, which is officially set to take effect on January 1, 2026.
