As part of the new social reform package implemented by the decree of President Ilham Aliyev dated December 23, 2024, the minimum pension has also been increased.
Under the new law approved by the head of state, starting February 1, 2025, the minimum amount of the labour pension has been raised by 14,3% or 40 manats, from 280 manats to 320 manats.
Therefore, all pensions that were below 320 manats before February 1, 2025, have been automatically increased to 320 manats from that date, without requiring any application from pensioners.
Additionally, starting February 1, 2025, the minimum pension for individuals who retire will no longer be 280 manats but will instead be 320 manats.
Currently, the minimum pension amount exceeds the established minimum living wage for pensioners in 2025 (232 manats) by 88 manats, or 38%.
It is also worth noting that, under the decree of the President dated February 5, 2025, all pensions were increased from January 1, 2025, by an 8,1% index, in line with the annual growth of the average monthly wage in 2024. Moreover, pension funds recorded in the individual accounts of insured persons as of January 1, 2025, were indexed by 2,2% in accordance with the annual level of the consumer price index for the previous year.
As a result of the social reforms carried out since 2018, significant increases have been achieved in social payments in our country, including a threefold increase in the minimum pension. Additionally, the average monthly pension has increased 2,4 times.
Under the new social reform package implemented at the beginning of 2025, alongside pensions, the minimum wage and salaries in several sectors have also been increased. It is also expected that benefits and stipends will be raised in the coming months.
In total, an additional 1,4 billion manats has been allocated for the next round of social reforms (the 5th since 2018), which will benefit 3 million citizens.
