How much will labor pensions and pension capital increase?

According to the Law "On Labor Pensions", not only labor pensions are indexed annually, but also the pension capital of citizens. Article 29.1-1 of the specified law states that "pension capital accounted for in the insurance part of the individual account of insured persons is indexed once a year in accordance with the annual level of the consumer price index".

As reported by BAKU.WS, this was stated by economist-deputy Vugar Bayramov in his social media publication.

According to him, pension capitals will be increased in accordance with the level of annual inflation in 2025.

"According to the latest data from the State Statistics Committee, the annual inflation rate in 2025 was 5.6 percent. This means that the pension capital of our citizens as of January 1, 2026, will be increased by 5.6 percent. So, if a citizen has a pension capital of 40 thousand manats, 2,240 manats will be added to their savings. As a result, the pension capital of this citizen will amount to 42,240 manats," the deputy noted.

The expert also added that at the beginning of next month, the President of Azerbaijan is expected to sign an order on the indexation of pension capital. This will implement the indexation of pension capital amounts accounted for before January 1, 2026, in the insurance part of the individual account of insured persons, in accordance with the annual level of the consumer price index.

"The indexation of pension capital is aimed at protecting savings from inflation. The goal is to minimize the impact of price increases on these funds. The indexation of pension capital should not be confused with pension increases. Pension capital increases in accordance with the inflation rate, while labor pensions increase in accordance with the percentage growth of the average monthly salary for the previous year. Although the increase in pension capital will be 5.6 percent, labor pensions are expected to increase by 9.2 percent," V. Bayramov summarized.