All state pensions in Azerbaijan will rise next year as part of a nationwide indexation plan tied to wage growth, lawmaker Vugar Bayramov said during parliamentary discussions on the 2026 budget of the State Social Protection Fund.
Speaking at a joint session of the committees on economic policy and social affairs, Bayramov said the increase – effective January 2026 – will cover about 1.1 million citizens and will reflect this year’s growth in the average monthly salary.
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“In the first nine months of 2025, the average wage rose by 9.7 percent year-on-year to 1,093 manats. Based on preliminary estimates, pensions will be indexed by around 9.2 percent starting next year,” he said.
Bayramov also outlined next year’s spending plans for the Unemployment Insurance Fund, which total 266.4 million manats. Of that, 77 million manats, or roughly 30 percent, will go toward self-employment and active labor programs, while 28 million manats, or 10.5 percent, will be used for unemployment benefits.
“Since a growing share of the fund’s resources supports employment initiatives rather than direct payouts, renaming it the Employment and Unemployment Insurance Fund would better reflect its mission,” Bayramov suggested.
The lawmaker added that the government’s decision to raise the poverty threshold to 300 manats in 2026 will both expand eligibility for social aid and increase the amount of monthly assistance to low-income families.
Currently, 353,300 people from 80,300 households receive targeted state social assistance. The higher threshold is expected to bring more families into the program and raise average benefit levels.
