Azerbaijan to scrap 80% salary replacement rule for parliamentary pensions

Sitting members of the Azerbaijani parliament will no longer be eligible to have their retirement pensions topped up to 80% of their average monthly parliamentary salary once they retire.

Under a draft bill submitted to the Milli Majlis, the longstanding calculation method is being abolished in favor of a model where pensions are determined by accumulated capital on individual social insurance accounts, supplemented by a role-specific monthly stipend. Under existing rules, qualifying former MPs receive a supplemental allowance covering the difference between their calculated labor pension and 80% of their former average salary (or designated pay grades for the speaker, deputy speakers, and committee chairs).

The statutory prerequisite requiring MPs to hold an insurance track record covering at least half of their parliamentary term remains in force under the proposed legislation.

Gulnar Nazimgizi