Pension spending in Azerbaijan increased notably in the first seven months of 2025, reaching 4.142 billion manats — 367 million manats more than in the same period last year, according to the State Social Protection Fund.
Economist and MP Vugar Bayramov linked the rise primarily to the implementation of the country’s fifth social package. From January, all types of labor pensions were indexed and raised by 8.1%, while the minimum pension grew by 14.3% to 320 manats as of February 1. These adjustments directly boosted pension outlays, benefiting 1.1 million citizens.
Bayramov also noted that the government continued issuing new pensions throughout the year, with 27,000 granted proactively via an electronic system. In total, over 94,200 people received social benefits or stipends through the same process, highlighting increased digitalization and faster decision-making in social policy.
Looking ahead, the 2025 state budget allocates 16.9 billion manats for social spending, including 4.8 billion manats for social protection and welfare — a sign that pension commitments will continue to grow.
However, while officials frame this as a success in social policy, some economists warn that rising pension obligations may place heavier long-term pressure on public finances if not matched by sustainable economic growth and broader reforms to the pension system.
