Pensions to citizens of the Republic of Azerbaijan and foreigners and stateless persons permanently residing in the territory of the Republic of Azerbaijan are determined and paid in accordance with the Law on Labour Pensions.
Labour pensions are monthly payments to citizens for the purpose of compensation of their income they earned before their entitlement to labour pensions and according to the rules and conditions stipulated by the Law on the Labour Pensions. Statutory pension insurance not only provides insured persons with security in old age, it also makes up for lost maintenance in the form of surviving dependants' pensions paid on account of the insured person's death.
According to the Law of the Republic of Azerbaijan dated July 12, 2019 "On Amendments to the Law of the Republic of Azerbaijan" On Labor Pensions ", the minimum amount of pensions in our country was established in the amount of 200 manat since October 1, 2019. If the amount of the labor pension established in accordance with this Law is below the minimum wage, it shall be paid by bringing it to that amount.
Persons who have rights under the laws of the Republic of Azerbaijan to different pension types are entitled to one pension with their desire.
Labour pensions are defined in three types:
old-age labour pension;
labour pension for disability;
labour pension for surviving dependants.
The insurance portion of the labour pensions is the amount that is calculated as the ratio of the retirement pension to the number of months to the expected retirement period of the individual account's insurance portion.
The collecting part of the labour pensions is the amount that is calculated as the ratio of the retirement pension accumulated in the personal account to the number of months of expected retirement.
Labour pension for losing a family head consists only from insurance part.