Retirement pension

According to Article 7 of the Law "On Labour Pensions", if the pension capital registered in the insurance part of the individual account of a person who has reached retirement age allows for pension coverage not less than the minimum amount of the labour pension, regardless of insurance length of service, and if it does not allow for pension coverage, but has 25 years of insurance length of service (except for those who were assigned a retirement pension until July 1, 2017) have the right to retirement pension.

According to the Article 7 of the Law the age limit for men from July 1, 2017 to July 1, 2021, and the age limit for women from July 1, 2017 to July 1, 2027 increases each year by 6 months and determined as follows:

Retirement pension is determined for life based on the application of the person entitled to it. The insurance part of a retirement pension is the ratio of the pension insurance capital (PSK) registered in the insurance part of the individual account of the insured person on the date of the determination of the retirement pension (including the pension capital registered in the insurance part of the individual account of the insured person in accordance with Article 27 of the Law on Labour Pensions) to the expected pension payment period (SH=PSK/T).

The Law on Amendments to the Law "On Labour Pensions" dated December 21, 2018, entered into force on January 1, 2019. According to the amendments, from the beginning of 2019, pensions have been determined electronically without any application of the person entitled to the pension, without submitting a document and on the day of the pension right. After the pension is assigned to the person, he is also informed about the amount of the pension, the bank branch where he will get the bank card and the time by "sms", e-mail or official letter.

The measure of automation of pension determination will cover 80 percent of the persons who will be entitled to pension.

The other 20 percent of people whose pension entitlement is not yet possible to automate include:

• Those entitled to labour pension under favorable conditions according to Article 9 of the Law "On Labour Pensions"
• Civil servants, military personnel, persons of special rank, deputies, etc. i.e categories indicated in Article 20 of the Law "On Labor Pensions"

To automate the pension determination of citizens of that category, work will be carried out both in the legislation and in the direction of building electronic software together with the relevant institutions.

According to the Law "On Social Benefits", persons who have reached the age of labour pension, but do not have the right to it, have the right to receive age-related social benefit (220 manats from January 1, 2023) if they are unemployable and do not work.

Application can be made to the regional branch of the State Social Protection Fund or the DOST centers in person or through a representative under a power of attorney.

1. A copy of the identity card of the person who is assigned a labour pension (in the case of foreigners and stateless persons, a copy of the permit card granting the right to permanent residence in the territory of the Republic of Azerbaijan);
2. Documents related to social insurance record.

Based on the insurance indicators, the amount of pension is determined according to the pension capital accumulated in the individual account.
Note : The amount of the minimum pension is 280 manats.
Retirement pension is set for life.