In line with the reform programme of President Mr. Ilham Aliyev, state and consolidated budgets will retain their social orientation in 2027 as well. In accordance with the instructions of the Head of State, the relevant financial provision for the 6th social reform package has been made in the state and consolidated budgets for 2027.
This was stated by Anar Aliyev, Minister of Labour and Social Protection of Population, during the discussion of the draft law “On the State Budget of the Republic of Azerbaijan for 2027” at its first reading at a joint meeting of the Milli Majlis Committees on Natural Resources, Energy and Ecology; Labour and Social Policy; Healthcare; and International Relations and Interparliamentary Relations.
Noting that another significant increase in wages and social payments had been recorded this year, the Minister said that the average monthly pension had increased by 10.4 per cent compared to the corresponding period of the previous year, reaching 596 AZN, while the average old-age pension had risen by 10 per cent to 634 AZN. The average monthly salary had increased by 7.2 per cent to AZN 1,173, while payments in the form of allowances, stipends and targeted state social assistance had risen by 8.4 per cent to 1.9 billion AZN. Overall, the Ministry of Labour and Social Protection of Population makes monthly payments totalling 900 million AZN to 22 per cent of the population, or 2.2 million people. Of this amount, 676 million AZN accounts for pensions and social insurance payments, while 214.3 million AZN is allocated to social allowances paid from the state budget, stipends granted by the President of the Republic of Azerbaijan, and targeted social assistance.
Anar Aliyev stated that the revenues of the State Social Protection Fund for 2027 were projected at 9 billion 221 million AZN, which is 897.4 million AZN, or 10.8 per cent, higher than the approved revenue for 2026. He noted that 82.3 per cent, or 7 billion 587 million AZN, of the Fund's revenues for 2027 were projected to come from compulsory state social insurance contributions. This figure is 995.4 million AZN, or 15.1 per cent, higher than the approved figure for the current year.
The Minister stated that the total expenditures of the State Social Protection Fund for 2027 were projected at 9 billion 273 million AZN, which is 789.5 million AZN, or 9.3 per cent, higher than the approved expenditures for 2026. Payments to the population account for 96.5 per cent of expenditures, or 8 billion 950 million AZN. This figure is 1.7 billion AZN higher than in 2025 and 753.6 million AZN higher than in 2026. Next year, the average labour pension is projected to reach 639 AZN, while the average old-age pension is expected to amount to 680 AZN. These figures are projected to account for 50 per cent of the average monthly salary next year and 53 per cent in the case of old-age pensions, respectively.
Noting that, according to data from the “Labour and Employment” Subsystem, the number of employment contracts across the country had increased by 1.2 per cent compared to the same period last year, Anar Aliyev drew attention to the fact that the number of employment contracts in the private sector had increased by 5.8 per cent, or 59,000, compared to the same period last year. He also noted that, according to data from the “Labour and Employment” Subsystem, the country's total wage fund had increased by 8.5 per cent.
He stated that revenues of the Unemployment Insurance Fund in 2027 were projected at 268.9 million AZN, which is 30.6 million AZN, or 12.8 per cent, higher than the approved figure for 2026. The Fund's expenditures for 2027 are projected at 319.2 million AZN, which is 52.8 million AZN, or 19.8 per cent, higher than the approved figure for the current year. In 2027, 444,000 people are expected to be involved in active employment measures financed by the Unemployment Insurance Fund. In particular, 173,000 people are projected to be employed, 14,500 people to be involved in the self-employment programme, 18,500 people to participate in vocational training, and 230,000 people to receive career guidance and counselling services. In recent years, the coverage of active employment measures has doubled. Annually, the number of people provided with jobs has increased 3.6-fold, the number involved in the self-employment programme 2.7-fold, the number enrolled in vocational training 7.1-fold, and the number receiving career guidance services threefold.
The Minister noted that revenues of the Compulsory Health Insurance Fund for 2027 were projected at 2 billion 257 million AZN, which is 281.2 million AZN, or 14.2 per cent, higher than the approved revenues for 2026. He stated that the Fund's total expenditures for 2027 were projected at 2 billion 980 million AZN, which is 358.7 million AZN, or 13.7 per cent, higher than the approved figure for the current year. Of the expenditures, 2 billion 565 million AZN, or 86.1 per cent, is allocated to compulsory health insurance payments to medical institutions and medical staff salary expenses.
The expenditures for the coming year also provide for the allocation of 185 million AZN to state programmes and measures in the healthcare sector; 105 million AZN for the development and improvement of medical services, as well as the establishment of digital infrastructure; and 59 million AZN for insurance payments to pharmacies for medicines used in outpatient settings and for providing persons with disabilities with medicines.
Anar Aliyev also stated that 40 million AZN was earmarked for improving the housing and living conditions of families of martyrs and persons whose disabilities are related to the war, while more than 30 million AZN was planned to be allocated for providing persons with war-related disabilities with cars and persons with disabilities with rehabilitation aids.
