AZE.US
Azerbaijan is considering shortening the period for recalculating pensions for people who continue working after reaching retirement age from six years to four.
Vugar Bayramov, a member of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, said the proposal had been raised during parliamentary discussions.
Under current legislation, the pension of a retiree who remains formally employed is recalculated after every six years of continued work. The adjustment is based on the pension capital accumulated during that period.
For the recalculation, 90% of the accumulated pension capital is divided by 72 months, and the resulting amount is added to the retiree’s monthly payment.
For example, if a working retiree accumulates 10,000 manats, or approximately $5,880, in pension capital over six years, 9,000 manats would be used in the calculation. Dividing that amount by 72 would increase the person’s monthly pension by 125 manats, or about $74.
In 2026, the increase is expected to apply to people who retired in 2020 but continued working and have now completed the required six-year period. Bayramov said the recalculation would be conducted proactively, without requiring retirees to submit a separate application.
The proposed amendment would allow working retirees’ pensions to be recalculated every four years. Over a 12-year period, this could mean three increases instead of two under the current six-year schedule.
Supporters of the proposal argue that more frequent recalculations would allow retirees to benefit sooner from the pension capital accumulated after retirement.
AZE.US