Important Explanation from an MP on Pensions

Thousands of citizens in Azerbaijan receive social benefits instead of an old-age labor pension despite reaching retirement age because they do not have sufficient insurance contribution years. In some cases, individuals are only a few months short of completing the required 25 years of insurance service.

If a person who receives a social benefit after reaching retirement age later continues working and completes the required 25 years of insurance service, can they then qualify for an old-age labor pension? How is this regulated?

Faktxeber.az reports that economist and Member of Parliament Vugar Bayramov explained the conditions under which a citizen may qualify for a labor pension in an interview with Globalinfo.az:

"Under the current legislation, a citizen becomes eligible for an old-age labor pension if they have either at least 25 years of insurance service or the minimum pension capital established by law. The minimum pension capital is calculated by multiplying the minimum monthly labor pension amount by 144.

This requirement is determined in accordance with the legislation in force at the time the pension is granted. Therefore, a citizen becomes entitled to an old-age labor pension if they meet either the 25-year insurance service requirement or the minimum pension capital requirement."

According to Bayramov, there are practical cases in which a citizen falls just a few months or one year short of the insurance service required to qualify for a labor pension.

"As a result, they lose the right to receive an old-age labor pension and can only benefit from other social support mechanisms. In many cases, this does not provide the desired level of social protection.

Our proposal is that such cases should be recognized as a special exception in the legislation. A separate mechanism should be introduced for calculating and granting pensions to citizens who are only a very short period away from meeting the minimum insurance service requirement. This approach would enable these individuals to qualify specifically for an old-age labor pension."

Bayramov believes that amending the legislation and considering such proposals would be appropriate.

"Such an approach would strengthen social protection for citizens whose insurance service falls only slightly short of the minimum requirement and would contribute to ensuring greater social justice."