11:49 - 18.10.2022

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October 18, Fineko/abc.az. As we approach the end of the year, the question of how much pensions will grow in 2023 becomes actual. In this regard, various figures have been announced.

But by what mechanism do labor pensions increase in general? Should we expect a significant increase in the size of pensions?

ABC.AZ reports that the increase in pensions in Azerbaijan refers to two cases. One of them is an increase in the minimum pension amount, and the other is an increase in the amount of pensions by indexing.

In the first case, the increase applies only to the minimum threshold of labor pension. The last time the minimum pension was increased this year in connection with changes in the Law on Labor Pensions. Thus, the minimum pension was increased by 20% - from 200 to 240 manats. This means that currently the size of the labor pension in the country is at least 240 manats.

Pensions are increased by indexation at the beginning of each year. The goal is to ensure the purchasing power of the pension amount. According to the legislation of the country, at the beginning of each year, by the relevant presidential decree, the insurance part of all types of labor pensions is indexed and increased.