Old-Age Pension

According to Article 7 of the Law on Labour Pensions, persons who have reached the retirement age and accrued pension capital that is not less than the minimum pension amount or reached 25 years of insurance contributions, are entitled to old-age pension (except for those who have been granted a labour pension for July 1, 2017).

The age limit for old-age pension envisaged in Article 7 of this Law is defined as follows increasing 6 months each year starting from July 1, 2017 to July 1, 2021 for men, from July 1, 2017 to July 1, 2027 for women:

Period

Retirement age for men

Retirement age for women

July 1, 2017 – June 30, 2018

63 years 6 months

60 years 6 months

July 1, 2018 - June 30, 2019

64 years

61 years

July 1, 2019 - June 30, 2020

64 years 6 months

61 years 6 months

July 1, 2020 - June 30, 2021

65 years

62 years

July 1, 2021 - June 30, 2022

65 years

62 years 6 months

July 1, 2022 - June 30, 2023

65 years

63 years

July 1, 2023 - June 30, 2024

65 years

63 years 6 months

July 1,  2024 - June 30, 2025

65 years

64 years

July 1, 2025 - June 30, 2026

65 years

64 years 6 months

July 1, 2026 and later

65 years

65 years

 

Age retirement pensions are determined on the basis of the application of a person entitled to that pension. The amount of the insurance portion (SH) of an old-age pension shall be calculated as the ratio of pension capital (PSK) to the expected number of months of pension payment (T). i.e. (SH = PSK / T).

The Law of the Republic of Azerbaijan "On Amendments to the Law of the Republic of Azerbaijan on Labor Pensions", approved by President Ilham Aliyev on December 21, 2018, came into effect on January 1, 2019. According to the law and the enacted change, from the beginning of 2019, the pensions are entitled electronically within the day of occurring the right to the labour pension of a person. Once the pension is assigned to the person, it is also informed of the amount of the pension, the bank branch from which the bank card will be received and the time via "sms", e-mail or official letter.

The retirement automation arrangement will cover 70 percent (36,000 people) of those who will receive a pension right for 2019.

Automated retirement benefits do not cover the 30 percent of pensioners from the categories below:

  • Under Article 9 of the Labor Pensions Law (those entitled to a labor pension on favorable terms)
  • Article 20 of the Labor Pensions Act (Civil Servants, Military Servants, Special Ranks, MPs, etc.)

In 2019, work will be done in the legislation system to automate the pension assignment of citizens of the same category, as well as the establishment of electronic software with related institutions.