Parviz Heydarov writes…
It is known that next year the minimum wage and pensions in the country will increase. Based on this, the fifth social package is also expected to be implemented after the 4 social packages implemented since 2019. That is, social benefits and pensions will be increased.
In the last five years, four social reform packages including increasing salaries, pensions and other social payments in 2018-2023 were implemented with decrees and orders of the President, which has led to an annual expenditure of almost 7 billion manats. covering more than 4 million citizens.
As a result, since 2019, the minimum monthly wage has increased 2.7 times from 130 manats to 345 manats, the minimum monthly pension has increased 2.5 times from 110 manats to 280 manats, accounting for more than 70% of the nominal salary In the country, 2.1 times the average salary, 2.5 times the salary fund, the average monthly pension has multiplied by 2, the annual funds allocated for social benefits and pensions have increased 5 times and the monthly amount average specific social assistance. has increased 2.9 times.
Not to mention that each year the insured part of labor pensions is calculated in accordance with the consumer price index, which is calculated based on the level of growth of the average monthly nominal salary indicator in the previous year, as well as the amounts of the formed pension capital. based on mandatory state social deductions taken from the salaries of working citizens. Which is not considered a social package as it comes from the relevant legislation and has been implemented and will be implemented at the beginning of each year.
The topic I want to touch on in this article is completely different. I mentioned earlier that social benefits and pensions are expected to increase next year. And the fifth social package is supposed to be implemented. But this remains a possibility. That is, pension amounts can only be increased with the minimum wage.
By the way, in the draft state budget for 2025, 4 billion 998 million manats were allocated to security and social protection expenses with a special weight of 12.6%. This is 607 million manats, or 14% more than the 4,391 million planned in the current year’s budget.
I recalled that in the 2024 state budget, social protection and social security expenses were previously approved at 4 billion 542 million 200 thousand manats, but as a result of the mid-year review, 150 million 800 thousand were reduced to 4 billion 391 million manats. .
What I want to point out is that 607 million manats may not be considered enough to increase the minimum wage and pensions, as well as all types of social benefits and pensions. Because there are 17 types of monthly scholarships, 6 types of unique social benefits, and 14 types of presidential scholarships.
However, we must not forget that a certain amount (more than 100-150 million manats) was deducted from the budget of the State Social Protection Fund (FSDS) and returned in the form of surplus income. That is, what I mean is that there is actually, if not all, a corresponding opportunity to increase social benefits and pensions over the next year, and it is possible, if we take into account the financing through the DSMF line.
Therefore, I believe that the most important should be the social benefits granted for disability and the President’s pensions. This includes, in particular, monthly social benefits paid to persons with a disability of 81% to 100% and 61% to 80%, as well as monthly pensions and similar payments provided to such citizens.
In general, among all types of social benefits and pensions paid in the country, more attention should be paid to disability payments. Because many of them are currently at a very low level. And these people need special care. For example, paying a monthly pension of 100 manats for care to people who have lost between 81 and 100% of their bodily functions does not respond to any logic. It is good that this amount is increased.
