Azerbaijan has proposed changing the way pensions above the average monthly salary of 1,176.7 manats are indexed, applying a coefficient of 0.2 to 0.5 to the portion exceeding that threshold.
The formula is included in legislation discussed at a joint meeting of parliament’s Labor and Social Policy Committee and its Defense, Security and Anti-Corruption Committee, according to Vesti Baku.
Indexation would be applied in full up to 1,176.7 manats. If a pension exceeds that level, the amount up to the threshold would still receive full indexation, while the lower coefficient would apply only to the excess.
More Than 90% Would Be Unaffected
Data presented during the discussion showed that more than 90% of pensioners receive payments no higher than the average monthly salary. Their pensions would continue to be indexed under the existing rules, with the full approved percentage applied.
The new formula would affect roughly 10% of recipients with higher pensions. The legislation also proposes changes for certain civil servants, military personnel, tax-service employees and diplomats.
The measure remains a parliamentary proposal and would take effect only after completing the legally required approval process.