Azerbaijan will increase all types of labor pensions from January 2026, according to Member of Parliament Vugar Bayramov, who outlined how rising wages will impact next year’s pension indexation.
Bayramov noted that the country’s average monthly salary grew by 9.5% in the first ten months of 2025, reaching 1,087 manats. The highest wage levels were recorded in the oil and gas sector, finance and insurance, information and communications, scientific and technical fields, and transport and logistics.
This wage growth is critical, he said, because it directly determines the pension indexation rate.
All Labor Pensions to Be Indexed
The MP explained that indexation is carried out under the Law “On Labor Pensions.”
“Preliminary estimates suggest that in 2026, average wages will increase by 9.2%. This means pensions are expected to rise by the same percentage. The exact figure will be announced in early February,” Bayramov said.
Indexation will apply to all three categories of labor pensions:
old-age pensions,
disability pensions,
survivor’s pensions.
Any citizen who obtained pension rights on or before December 31, 2025, will receive the increased amount.
Over 1.1 Million Citizens to Benefit
The adjustment will affect approximately 1.1 million people. It will cover both the insurance portion of labor pensions and additional payments granted for years of service.
“Starting January 2026, all types of labor pensions will be increased in line with the growth of the average nominal wage in 2025,” the MP emphasized.
