Azerbaijan.US
Labor pensions in Azerbaijan are expected to rise in early 2026, following the release of updated inflation and wage data.
According to the State Statistics Committee, annual inflation in 2025 stood at 5.6%. This figure serves as the key benchmark for indexing individual pension capital accumulated by citizens.
Member of parliament Vugar Bayramov explained that pension adjustments will take place along two separate tracks. First, individual pension capital accounts will be fully indexed in line with inflation. Second, monthly labor pension payments are expected to increase under a different formula.
Under the updated approach, pension capital will be indexed in full, without the partial limitations applied in previous years. For example, if a citizen has accumulated 40,000 manats in pension capital, a 5.6% indexation would add 2,240 manats, bringing the total to 42,240 manats. The recalculated figures will take effect from January 1, 2026.
Monthly labor pensions, however, are adjusted independently of inflation. Their increase is tied to the growth rate of the national average monthly wage recorded in the previous year.
Based on current expectations, labor pension payments are set to be recalculated and increased at the beginning of 2026, reflecting wage growth across the economy.
