The annual indexation increases of pensions and pension capital ensure comprehensive protection of the interests of pensioners and the working population.

One of the key achievements of the consistent social reforms carried out in recent years under the instructions of President Ilham Aliyev has been the continuous upward trend in pensions. The new Decree of the Head of State has enabled the continuation of this growth, increasing all types of pensions by 9.3 percent from January 1 of this year in accordance with the annual growth rate of the average monthly wage for 2025.

As a result, the average monthly pension has increased from 543 manat to 593 manat, and the average old-age pension from 578 manat to 632 manat. Compared to 2018, these figures represent increases of 2.8 times and 2.7 times respectively.

In addition to increases in the minimum pension, annual indexation adjustments have played an important role in these increases. Indexation rates were 16.6 percent in 2020, 11.4 percent in 2021, 3.4 percent in 2022 (with additional financial assistance bringing the average increase to 9 percent), 14.7 percent in 2023, 11.2 percent in 2024, 8.1 percent in 2025, and 9.3 percent this year.

Additional annual funds allocated for indexation-based increases amounted to 498.2 million manat in 2020, 352.84 million manat in 2021, 117.02 million manat in 2022, 693.78 million manat in 2023, 618.09 million manat in 2024, 506.49 million manat in 2025, and 640 million manat this year.

Overall, annual funding for pension provision has increased 2.3 times compared to 2018, reaching 7 billion 993 million manat this year.

Additionally, as an important state support measure for the future pension security of the working population, pension capital in individual accounts is increased annually by decree. For example, increases were 2.6 percent in 2020, 2.8 percent in 2021, 6.7 percent in 2022, 13.9 percent in 2023, 8.8 percent in 2024, 2.2 percent in 2025, and 5.6 percent this year.

As with pensions, increases in pension capital are implemented automatically through the electronic system. Individuals can monitor changes in their pension capital, including contributions and annual indexation increases, through the e-social portal.

These increases also serve as a call to workers engaged in informal employment: by working under formal employment contracts, they can obtain future pension rights and benefit from annual state indexation increases on their accumulated pension capital.