BAKU, Azerbaijan — Net pay for Azerbaijani Defense Ministry service members is set to rise by an average of 22.8% under proposed changes that could cost the state budget as much as 550 million manats a year.
The changes to military pay and pensions were discussed by parliament’s Defense, Security and Anti-Corruption Committee.
Committee Chairman Arzu Naghiyev described the overhaul as an initiative of President Ilham Aliyev. He said the new model is intended to bring military compensation and retirement benefits closer to international standards.
How Military Pay Would Change
After taxes and mandatory deductions, income for all Defense Ministry service members would increase by an average of 22.8%. Several allowances and one-time payments would be consolidated into a more transparent compensation structure.
The salary component tied to a service member’s position would be replaced by pay based on military rank. Rank-based pay could account for as much as 70% of total compensation.
New Pension Formula
Military pensions would no longer be linked directly to a service member’s final compensation. The proposed formula would use individual pension capital and a fixed monthly supplement tied to military rank.
The maximum service age for each rank would become the retirement age. Military pensions that have already been awarded would not be recalculated.