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Akbar Novruz

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Azerbaijan has significantly strengthened its social protection framework over the past seven years, implementing five major social reform packages covering 4 million citizens, with a total annual financial impact of 7.6 billion manats (≈ USD 4.47 billion), Minister of Labor and Social Protection Anar Aliyev said during today’s parliamentary discussions on the 2026 budgets of the State Social Protection Fund and the Unemployment Insurance Fund, Azernews reports.

Speaking at the plenary session of the Milli Majlis, the minister noted that the fifth social reform package, launched this year and covering 1.9 million citizens, has resulted in substantial increases to wages, pensions, benefits, and scholarships.

From January 1, the minimum wage rose by 16 percent to 400 manats (≈ USD 235), while from February 1, the minimum pension increased by 14.3 percent to 320 manats (≈ USD 188).

From July 1, social benefits, the President’s pensions, and honorary title scholarships were raised, followed by increases in student scholarships from September 1.

Additionally, salaries for military personnel rose by an average of 10 percent at the beginning of the year.

Aliyev stated that the annual financial cost of the fifth reform package totals 885 million manats (≈ USD 521 million), which rises to 1.4 billion manats (≈ USD 825 million) when the 8.1 percent pension indexation applied earlier in the year is included.

As a result of these reforms, pension payments in 2025 increased by 10 percent year-on-year, with the average monthly pension rising to 540 manats (≈ USD 318) and the average old-age pension reaching 576 manats (≈ USD 339).
Social benefits and Presidential pension expenditures increased by more than 12 percent compared to the same period last year.

Increased allocations in the 2026 state budget

The 2026 draft state budget allocates 2.144 billion manats (≈ USD 1.26 billion) for social benefits, pensions, and compensations — an increase of 178.5 million manats from 2025.

Next year’s budget also provides:

• 465 million manats (≈ USD 274 million) for the Social Security System

• 141.7 million manats (≈ USD 83.5 million) for paid public works

• 31.7 million manats (≈ USD 18.7 million) for rehabilitation equipment

• 50 million manats (≈ USD 29.7 million) to provide housing for families of martyrs and war invalids

Total social expenditures in the 2026 state budget will reach 17.146 billion manats (≈ USD 10.1 billion), marking a 2.2-fold increase over seven years.

In addition, social protection and social security expenditures are projected at 4.873 billion manats (≈ USD 2.87 billion) — more than double the level from seven years ago.

The minister emphasized that these rising allocations demonstrate the government’s continued commitment to strengthening social welfare, improving living standards, and expanding support for vulnerable populations.