A new change is expected in Azerbaijan that will please pensioners who continue to work. Thus, their pensions will increase again, and this increase will be implemented in two stages.
Modern.az reports that it was stated in the report prepared by ITV that the first increase is related to the general indexation of pensions. The second increase will occur as a result of the recalculation of pension capital accumulated in the individual accounts of working pensioners.
Currently, social insurance payments continue to accumulate in the individual accounts of approximately 200,000 citizens who continue to work despite reaching retirement age. As a result of the recalculation of these funds, a part of their pensions is expected to increase in 2026.
According to the information, an increase in pensions is expected, especially for those who retired in 2020 but continue their employment.
Experts state that one of the main reasons for the increase is the inflation factor. According to them, indexation is considered important to protect the value of pension capital accumulated over many years.
It is noted that since the citizen pays social insurance contributions for years, these funds are indexed annually, taking into account the effect of inflation. This allows for a higher pension amount in the future.
The report emphasized that, according to the law “On Labor Pensions”, if a person continues to work after retirement, social insurance contributions continue to accumulate in his individual account, and these funds are added to the pension every six years.
