AZE.US
Some working pensioners in Azerbaijan may receive two separate pension increases this year, according to MP and economist Vugar Bayramov.
Bayramov said all types of labor pensions were increased from the beginning of 2026 under a decree signed by President Ilham Aliyev. The indexation was based on the growth rate of the average monthly salary in the previous year and covered more than 1.1 million citizens.
For pensioners who continued working after receiving an old-age labor pension, the situation may be more favorable.
Under current rules, if a person keeps working after retirement, the pension capital accumulated in the insurance part of their individual account is recalculated after six years. The recalculation takes into account 90% of the mandatory state social insurance contributions paid during that period.
That accumulated pension capital is then divided by 72, and the resulting amount is added to the person’s monthly pension.
Bayramov gave a specific example.
If a citizen was granted an old-age pension on May 1, 2020, and continued working after that date, the six-year period would be completed on May 1, 2026.
If that person’s pension stood at 800 manats at the end of 2025, it would first be indexed by 9.3% from January 1, 2026. That adds 74.4 manats.
If the person accumulated 25,200 manats in pension capital during the six-year period, after accounting for 90% of paid social insurance contributions, that amount would be divided by 72. The result is an additional 350 manats per month.
In that case, the new monthly pension would be:
800 manats + 74.4 manats + 350 manats = 1,224.4 manats.
That means the pension would rise by 424.4 manats in total.
Bayramov said the double increase applies to working pensioners whose six-year employment period after retirement is completed in 2026. They can benefit both from the general indexation and from the separate recalculation of pension capital accumulated while they continued working.
AZE.US