Azerbaijan.US
Under Azerbaijan’s 2026 state budget framework, pension payments are expected to continue rising. According to official forecasts, the average monthly pension nationwide will reach 590 manats, while the average old-age pension will increase to 629 manats.
The increase will be driven primarily by annual indexation mandated by law. Authorities expect labor pension indexation this year to be close to 9%, with final figures to be approved and announced in the coming days.
Last year, pensions were indexed by 8.1%, although the effective average increase exceeded that level. To finance pension increases in 2026, the government plans to allocate an additional 636 million manats.
At the same time, no decision has been made to raise the minimum pension. As a result, individuals retiring based on work history in 2026 will continue to receive the minimum pension of 320 manats.
Economists note that the rise in average pension figures is largely the result of mandatory indexation linked to the previous year’s average wage growth. They stress that this mechanism is designed mainly to offset inflation rather than significantly boost real purchasing power.
Pension indexation is expected to take effect from February and will cover more than 1.1 million pensioners across the country.
