Azerbaijan’s Milli Majlis approved a broad social and personnel reform package in its first reading on Sept. 30, including a new pension indexation formula, changes to pensions for military personnel and civil servants, higher military pay and a new Civil Service Code.
The measures must still pass subsequent readings and complete the approval process before taking effect, Vesti Baku reported. The parliament’s Sept. 30 agenda lists the Civil Service Code and related pension and military-service amendments for first reading.
Pension Indexation
Under the proposal, the wage-growth index would be applied in full to pensions up to the average nominal salary, which stood at 1,176.7 manats as of Aug. 1, 2026. More than 90% of pensioners would be covered by that approach.
For pensions above 1,176.7 manats, the amount up to that threshold would also be indexed in full, while a coefficient ranging from 0.2 to 0.5 would apply to the portion above it.
The share of social insurance contributions credited to an individual pension account would fall from 90% to 85%. The ceiling on system-management expenses would rise from 2.5% to 3%. Officials say the changes would increase the insurance reserve available for pension and social-benefit indexation.
Musa Guliyev, chairman of parliament’s Labor and Social Policy Committee, said pensions already paid to serving military personnel, civil servants, diplomats and several other groups would not be reduced under the reform.
Military Pay and Pensions
Military compensation would move to a model based on salary by military rank. After taxes and mandatory deductions, the pay of Defense Ministry service members is expected to rise by an average of 22.8%.
Military pensions would be calculated using accumulated pension capital and a fixed monthly rank allowance. For each rank category, the maximum service age would become the age at which a person becomes eligible for a military pension.
New Civil Service Code
The proposed Civil Service Code contains 15 chapters and 94 articles. Once it takes effect, six existing laws would be repealed, including the laws on civil service and civil servants’ ethics.
The validity of civil service certificates would be shortened from five years to two. When more than five people apply for a vacancy, interviews would take place in two stages, with the five highest-scoring candidates advancing to the second stage.
The main pension provisions are scheduled to take effect on Jan. 1, 2027, but that date will become final only after the legislative process is completed.