The current state of social security indicators in Azerbaijan has been clarified. The Minister of Labor and Social Protection of the Population, Anar Aliyev, stated that the average pension amount is currently 594 manat. According to him, the average pension by age is 632 manat.
Can the average pension amount be increased?
Medianews.az reports that economist Khalid Karimli, speaking to globalinfo.az, said that the indicators reflect the current economic and social situation in Azerbaijan:
"There is no separate decision to directly increase the average pension amount. The average pension is calculated by dividing the total pension amount by the number of retirees. The main condition for increasing pensions is the rise in wages. Because the pension system in Azerbaijan is linked to wages and is formed based on the funds accumulated in the pension capital. Citizens can track the amount accumulated in their pension capital through the 'myGov' application. The higher the wage, the more funds accumulate in the pension capital, resulting in the possibility of receiving a higher pension."
The economist stated that the increase in the average pension directly depends on the country's economic development, overall wage levels, and especially salaries in the non-oil sector:
"Improving the competitiveness of the economy, creating new jobs, and increasing demand in the labor market lead to wage increases, which in turn lead to pension increases. Increasing the minimum pension also has a certain impact. The government reviews issues related to minimum pensions every two years. Probably by the end of the year, this issue will be reassessed and adjusted according to the current situation. However, overall, the main factor for the increase in the average pension is the rise in wages."