Minister: PAYG component will be increased for 1 240 000 people

Baku. 24 January. REPORT.AZ/ "Presidential order "On indexation of insurance part of labor pensions" dated January 21, 2017, considers next growth of pension for retirement".

Report informs, Minister of Labor and Social Protection of Population Salim Muslumov said.

He noted that according to the order, the State Social Protection Fund of the Ministry of Labor and Social Protection of Population must provide indexation of insurance part of all labor pensions to January 1, 2017, in accordance with consumer price index for the year of 2016: "Last year, the index of 12.4% was recorded in the country. According to the Presidential order "On indexation of insurance part of labor pensions" dated January 21, 2017, pension capitals, paid for the insured and registered in their individual accounts, will also be indexed.

Monthly 10.21 mln AZN as well 122.5 mln AZN additional funds will be allocated for indexation of insurance part of labor pensions. Totally, PAYG component will be increased for 94% of pensioners or 1 240 000 people. The amounts will vary depending on amount of insurance part".

Noting automated increase of insurance part of labor pensions and pension capitals in individual accounts, S.Muslumov stressed that pension payments for the next month, namely for February will be made by adding January and February increases of their insurance parts.

The Minister said that last year, number of labor pensioners in Azerbaijan increased by 16.1 thousand persons or 1.24% (including 0.4% for old age, 3.9% for loss of family head, 2.06% for disability) and made 1 316 000 people to January 1, 2017.