"After 25 years of work, teachers should get 100 percent of their salary as pension during their retirement. This will both increase employment opportunities for young people and have a positive impact on education," said Azerbaijani education expert Kamran Asadov. Although more than 50,000 young teachers have qualifications and meet the conditions of the competition, they are unable to work due to a lack of vacancies.

Kamran Asadov

The allocation of labor pensions in Azerbaijan is regulated by the Law on Labor Pensions. The law provides for benefits and privileges for several categories of people. They include civil servants, law enforcement officers, MPs, and others.

For example, former members of the Milli Majlis (Parliament) of Azerbaijan are provided with a pension that equals 80 percent of their salary. In this regard, the legislative act states that, except for MPs who had lost their position, a former MP who has reached retirement age receives a pension that equals 80 percent of the average monthly salary of an incumbent member of the Azerbaijani Parliament.

In other words, if a former MP retires with a salary of, for example, 3,000 manats, he will receive a monthly pension of 2,400 manats.

Besides, depending on the length of service, former judges are entitled to a pension in the amount of 50-55-80 percent of the salary. The same applies to prosecutors.

In Azerbaijan, civil servants' pensions are also set at no more than 80 percent of the state salary.

In addition, the percentage is determined by the length of service. According to Article 6 of the Law on Pension Provision of Civil Servants (Amount of Pension):

- a person who has worked at least five years as a civil servant will get a pension in the amount of 45 percent of his/her official salary;

- a person who has worked 5 to 10 years in the civil service will get a pension in the amount of 45 percent of his official salary, with the addition of 2 percent of the state salary for each year of service over five years;

- a person who has worked 10 to 15 years as a civil servant is entitled to a pension in the amount of 55% of the state salary, with an additional 5% of the salary for each year of service over 10 years, but not more than 80% of the state salary.

Military servicemen, employees of the judiciary, members of the Chamber of Accounts, employees of the migration authorities, and persons serving in the emergency services also enjoy these benefits and privileges, and their pensions are determined by different interest rates depending on the length of service. The upper limit is set at 80 percent.

The pensions of other categories, including teachers, are different.

According to Article 7 of the Law on Labor Pensions, the pension capital registered in the insurance part of the personal account of a person of retirement age allows to provide a pension not less than the minimum amount of the labor pension, regardless of the length of service (except for persons who have been granted an old-age pension until July 1, 2017).

The age limit for men was increased by six months every year from July 1, 2017, to July 1, 2021, and the age limit for women is increased by six months every year from July 1, 2017, to July 1, 2027.

By the way, according to Article 6-1 of the Law on Labor Pensions, the minimum amount of labor pension in Azerbaijan has been set at 200 manats since October 1, 2019.

It is noteworthy that from early 2019, pensions are determined electronically without any application from the person entitled to a pension, without submitting documents, and on the day of the right to a pension. After the pension is granted, the person is informed about it, as well as the amount of the pension, the bank branch where he will receive the plastic card, and the time by SMS, e-mail, or official letter. Pensions under this system cover 70% of those who will be entitled to a pension.

The percentage of those who are still unable to receive e-pensions is 30%. It includes those who have received the right to a labor pension on preferential terms (Article 9 of the Law on Labor Pensions), as well as civil servants, military personnel, MPs, etc. (Groups in Article 20 of the Law on Labor Pensions).

Considering the facts mentioned above, it can be concluded that currently, pensions are not set at 100 percent of salary in Azerbaijan. Only 30 percent of those eligible for a pension enjoy benefits and privileges. The rest is calculated on the basis of the relevant articles of the Rules for the allocation, recalculation, transfer, and payment of labor pensions under the Law of the Republic of Azerbaijan "On Labor Pensions."