According to Article 7 of Azerbaijan's "On Labor Pensions" law, a person who has reached the retirement age has the right to an old-age labor pension regardless of insurance record if the pension capital recorded in the insurance part of the individual's personal account allows for a pension provision not less than the minimum amount of labor pension; if this pension provision is not sufficient, then the person has the right to an old-age labor pension if they have at least 25 years of insurance record.
In the country, men retire at age 65, and women at 64 and a half. From July 1, 2026, the retirement age for women will also increase to 65.
The minimum amount of the labor pension is 320 manats.
Medianews.az reports that the law requires either 25 years of insurance record or the minimum pension capital for pension appointment. The minimum pension capital arises from multiplying the minimum pension indicator (320) by the number of months in the expected pension payment period (12 years) (144), currently amounting to 46,080 manats.
However, Article 22-1 of the law partially eases the pension condition. For a person who has accumulated any amount of pension capital from January 1, 2006, to July 1, 2018, their social insurance record is automatically considered 25 years; otherwise, a monthly allowance of 220 manats is given to a person who has reached retirement age.
Article 22-1 also states that for the years 2019-2025, when assigning an old-age labor pension to an insured person who has reached retirement age, their insurance record before January 1, 2006, is counted as 25 years, and from 2026 onwards, one year will be subtracted for each calendar year.
That is, starting January 1, 2026, if a person reaching retirement age has any amount of pension capital and at least 1 year of insurance record for the period between January 1, 2006, and July 1, 2018, a discount of 24 years of insurance record is granted to them, resulting in a total of 25 years of record, thereby establishing the right to an old-age pension based on this.
In other words, in 2026, a person reaching retirement age must have at least 1 year of compulsory insurance payment to fully meet the minimum insurance record requirement.
In 2027, the minimum insurance record requirement will increase to 2 years, in 2028 to 3 years, in 2029 to 4 years, in 2030 to 5 years, and in 2035 to 10 years.
Toğrul Ali,
Medianews.az