In Azerbaijan, tens of thousands work without formal labor contracts — a practice that not only undermines their labor rights but also jeopardizes their access to social protection, including pensions and health insurance.
How are pension rights regulated for informal workers?
According to MP and economist Vugar Bayramov, the right to a labor pension is granted only to those employed under an official labor contract. Speaking to Bizim.Media, Bayramov explained that two key conditions must be met to qualify:
At least 25 years of social insurance contributions (insurance record)
Accumulation of the minimum pension capital
Meeting at least one of these criteria entitles a citizen to a labor pension. However, those working without a formal contract lose this right entirely.
Bayramov noted that such individuals can only expect to receive an age‑based social allowance once they reach retirement age — a benefit that is generally lower and offers less protection than a full labor pension.
The MP stressed that the most sensible solution for informally employed workers is to secure an official labor contract, ensuring eligibility for a labor pension upon retirement.
