2024-08-06 23:33:54
One of the issues that has been frequently mentioned in the media recently is how much pensions will increase in 2025. Especially what is happening with prices makes this topic even more relevant. Various figures are already being played in this regard.
How much can pensions increase next year?
Day.Az reports with reference to qafqazinfo that increasing pensions mainly means indexation of pension amounts. According to the legislation, at the beginning of each year, all types of labor pensions are indexed according to the annual increase of the average monthly salary for the previous year. Pensions are indexed and increased as of January 1 of each year in accordance with the annual nominal increase of the average monthly salary of salaried employees for the previous year announced by the State Statistics Committee. In simple words, the more the average salary in the country increased in the previous year, the more pensions are increased. The process is carried out by the relevant order of the head of the country.
Since the year 2024 has not yet ended, the annual growth rate of the average monthly salary is unknown. However, the experience of previous years shows that since the increases in the salaries of employees are mainly at the beginning of the year, statistical indicators are also formed in this period. The subsequent period does not significantly affect the annual result.
For example, in January-May 2023, the average monthly salary across the country increased by 11.1 percent compared to the same period of the previous year, and in January-December by 11.2 percent compared to the same indicator last year. Thus, there was a difference of only 0.1 percentage point between the indicator of the 5th month of 2023 and the indicator of the 12th month.
In January-May 2024, the average monthly salary increase was 9.4 percent. From this point of view, it is possible to say that the increase for the months of January-December will be close to this indicator. As a result, it can be estimated that next year labor pensions will be indexed in the range of 9-10 percent.
Thus, if the average monthly salary increases by 10 percent in the current year, the pension amount of a person currently receiving a pension of 300 manats will increase by 30 manats to 330 manats in 2025. The pension amounts of persons receiving pension under special conditions will also increase in the same manner.
Inflation is predicted to be 2.7 percent in 2024. This means that the increase in labor pensions for the next year will exceed inflation by several times.
The amount of pensions is also affected by the increase of the minimum pension amount. Thus, the minimum pension amount implies that labor pensions should not be less than this indicator.
The minimum amount of pensions was last increased on February 1, 2023 and reached 280 manats. The minimum amount is increased by amending the Law “On Labor Pensions”. However, there is no information that the minimum pension amount will be increased in the near term.