According to Article 7 of the Law “On Labour Pensions,” a person who has reached the retirement age is entitled to a labour pension by age if the amount of the pension capital recorded in the insurance part of their individual account allows for pension provision not less than the minimum amount of the labour pension, regardless of the insurance record; if it does not allow such provision, the person is entitled to the pension by age if they have at least 25 years of insurance record (except for persons who were granted a labour pension by age before July 1, 2017).
The retirement age for men as stipulated in Article 7 of this Law is increased by six months each year from July 1, 2017, until July 1, 2021, and for women from July 1, 2017, until July 1, 2027, as defined below:
|
Period |
Retirement age for men |
Retirement age for women |
|
1 July 2017 – 30 June 2018 |
63 years 6 months |
60 years 6 months |
|
1 July 2018 – 30 June 2019 |
64 years |
61 years |
|
1 July 2019 – 30 June 2020 |
64 years 6 months |
61 years 6 months |
|
1 July 2020 – 30 June 2021 |
65 years |
62 years |
|
1 July 2021 – 30 June 2022 |
65 years |
62 years 6 months |
|
1 July 2022 – 30 June 2023 |
65 years |
63 years |
|
1 July 2023 – 30 June 2024 |
65 years |
63 years 6 months |
|
1 July 2024 – 30 June 2025 |
65 years |
64 years |
|
1 July 2025 – 30 June 2026 |
65 years |
64 years 6 months |
|
1 July 2026 and thereafter |
65 years |
65 years |
The labour pension by age is granted for life upon the request of a person entitled to it. The amount of the insurance part of such pension is determined as the ratio of the pension insurance capital (PIC) recorded in the insurance part of the insured person’s individual account as of the date of assigning the labour pension by age (including the pension capital recorded in accordance with Article 27 of the Law “On Labour Pensions”) to the number of months of the expected pension payment period (IP = PIC/T).
The Law of the Republic of Azerbaijan “On Amendments to the Law of the Republic of Azerbaijan ‘On Labour Pensions,’” approved by the President of the Republic of Azerbaijan, Mr. Ilham Aliyev, on 21 December 2018, entered into force on 1 January 2019. According to the amendment, as of the beginning of 2019, pensions are assigned electronically on the day the pension entitlement arises, without requiring the person’s application or submission of documents. After the pension is assigned, the person is informed about the decision, the pension amount, the bank branch where the card can be obtained, and the relevant time through SMS, email, or official letter.
Persons who have reached the retirement age but are not entitled to a labour pension by age are eligible, under the Law of the Republic of Azerbaijan “On Social Benefits,” to receive a social benefit for age if they are not working and are incapable of working (as of 1 January 2023, the amount is 220 manats).
Application procedure
A citizen may apply to the regional branch of the Fund or to DOST centres in person or through a representative by power of attorney, either in written or electronic form.
Required documents
Amount and duration of the pension
The amount of the pension is determined based on the pension capital accumulated in the individual account according to insurance indicators.
Note: The minimum amount of the pension is 320 manats.
The labour pension by age is granted for life.
