Member of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship Əli Məsimli answered questions regarding pension increases for 2026.
According to Modern.az, the deputy stated that, in accordance with legislation, pensions are increased once a year, and this occurs not soon, but in January of the following year.
“The annual indexation of labor pensions is a requirement of the Law 'On Labor Pensions'. That is, this is an issue that citizens are entitled to by law. Finally, the time has come for pension increases in the manner prescribed by law. A decree on the amount of pension increases will be issued during the first decade of February,” Ə.Məsimli stated.
According to him, in accordance with the requirements of Article 29, paragraph 1 of the Law 'On Labor Pensions', the insurance part of the labor pension is indexed once a year in accordance with the annual growth rate of the average monthly nominal wage across the country. This means that pension increases are carried out in accordance with the growth rate of the average monthly wage for the previous year, as announced by the State Statistical Committee:
“To substantiate this, let's start by noting that last year, i.e., in 2025, labor pensions were increased by 8.1 percent in accordance with the nominal growth indicator of the average monthly wage for 2024, as announced by the State Statistical Committee. In the same manner, this year, labor pensions will be indexed at a level corresponding to the average growth rate of the average monthly wage in 2025. Currently, there is no finalized indicator for this increase. According to the State Statistical Committee, the average wage increased by 9.3 percent in January-November 2025 compared to January-November 2024. Nevertheless, official statements currently suggest an increase of between 9-9.2 percent. The exact percentage of the actual increase will be known next week, i.e., in early February. As soon as the State Statistical Committee announces the average annual growth rate of nominal wages for 2025, a special presidential decree will be issued in early February regarding the increase of the insurance part of all types of labor pensions assigned by January 1, 2026, in accordance with that indicator.”
The deputy stated that by systematizing questions regarding the “specific amount of pension increases”, it can be estimated that after indexation, the pensions received by up to half of pensioners at the median pension level, i.e., around 360 manats, are expected to increase by approximately 33 manats to 393 manats, and the pensions of those receiving around the announced average pension of 543 manats are expected to increase by approximately 50 manats to 593 manats.
In response to the question “who will be covered by the pension increases planned for 2026”, Ə.Məsimli stated that, in accordance with the requirements of the Law 'On Labor Pensions', the pension increase will apply to all three types of labor pensions: old-age pensions, survivor's pensions, and disability pensions. On this basis, the pension increase is expected to cover 1.1 million pensioners.
In response to questions such as “why pensioners could not receive their pensions with an increase in January this year“ or “when pensioners will receive their increased pensions”, he stated that since the average annual growth indicator for wages for 2025 is not yet known, pensioners received their pensions at the previous amount in January this year.
“Pensioners will receive their increased pensions for January-February, including the January increase, together in February. That is, a pensioner whose pension is 400 manats will see their pension increase by approximately 37 manats, reaching 437 manats. However, in February, they will receive 474 manats, which includes the increases for both January and February. From the next month, i.e., March, they will receive approximately 437 manats in pension.”
In response to questions about “how much the pension capital in citizens' individual accounts will increase”, the deputy stated that, according to the requirements of Article 29.1-1 of the Law 'On Labor Pensions', the pension capital recorded in the insurance part of insured persons' individual personal accounts is indexed once a year in accordance with the annual level of the consumer price index, i.e., inflation.
“On this basis, last year, i.e., in 2025, pension capital in individual personal accounts was indexed and increased by 2.2 percent, recorded as the official inflation indicator. According to the aforementioned law, in 2026, the pension capital recorded in the insurance part of insured persons' individual personal accounts will be indexed at the level of the official inflation indicator for 2025. This figure is already known: in 2026, the pension capital recorded in the insurance part of insured persons' individual personal accounts will be indexed at a level of 5.6 percent. Currently, for a minimum pension provision of 320 manats, a minimum pension capital of 46080 manats or 25 years of work experience is required (excluding persons whose old-age labor pension was assigned by July 1, 2017). That is, the funds of a citizen with a minimum pension capital of 46080 manats in their individual account and receiving a minimum pension will increase by 2580 manats this year to 48660 manats, and the funds of a pensioner with 60 thousand manats in their individual account will increase by 3360 manats to 63360 manats, and so on.
Thus, this year, the increase in labor pensions will be around 9 percent, and the increase in pension capital in citizens' individual accounts will be 5.6 percent. Increases made to pensions for January will be paid together with the February pension.
The annual indexation and increase of pensions is a positive development. However, this is only one side of the issue. The second side of the issue remains open. Because alongside pensions, prices are also increasing. Therefore, serious anti-inflationary measures with real impact must be taken so that pension increases do not become “prey” to inflation, and can genuinely have a somewhat positive effect on pensioners' lives by enabling them to purchase a little more food, medicine, etc., than before.”
A.Qorxmaz
