Azerbaijan increases living minimum standard for 2021
By Ayya Lmahamad
Azerbaijan has increased the living minimum standard for 2021 by 3.1 percent compared to 2020.
The decision was made during the Parliament’s session on December 28.
According to the draft law “On the living minimum in Azerbaijan for 2021”, the living minimum for 2021 is projected at AZN 196 ($115.2).
The living minimum covers the working population- AZN 207 ($121.7), pensioners - AZN 162 ($95.2) and for children - AZN 175 ($102.9).
The amendments to the law “On workplace pensions in Azerbaijan” aims to strengthen the principles of social insurance when assigning pensions, combining pension supplements for certain categories of people with presidential pensions, extending the grace period regarding the length of service for another two years, improving legislation by deepening reforms in the field of electronic pensions assignment.
The new draft law proposed to abolish the law’s Article 19, since the allowances to the insurance part of the workplace pension provided for in it weakened the principles of social insurance in the pension system, and highly complicated their funding process.
Furthermore, it was proposed to cancel the extra payments to pensions, and combine them with the pensions of the President of Azerbaijan. Most of the pensions from the categories mentioned in this article (martyrs’ families, Azerbaijan National Heroes, war veterans, disabled persons of the first group and others) have already been assigned presidential pensions.
Cancellation of pension supplements and increase of presidential pensions will improve the social security of these people, and accelerate electronic assignment of such social payments.
People from these categories will also receive a monthly social allowance or a workplace pension if they are legally entitled to it.
Additionally, the amendments also reflected the issue of extending the grace period for two more years in order to ensure accessibility of the workplace pension for people who have reached retirement age. Thus, when assigning a retirement pension to people who have reached retirement age in 2019-2022, the insurance period accumulated until January 1, 2006, will be charged with a decrease by 25 years, and from 2023 by one year for each calendar year.
The amendments will make it possible to assign a workplace pension in electronic form, regardless of the place of residence.
After discussions, the draft laws were put on a vote and adopted in the second reading.
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Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad
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