Azerbaijan boosts social support Major increases in pensions, benefits, and allowances 

For many years, state support for vulnerable segments of the population has been a cornerstone of President Ilham Aliyev’s political agenda in Azerbaijan. Consistent efforts to improve living standards and strengthen social welfare remain a key focus of the country’s budgetary policy. The latest advancement in this ongoing commitment is a new presidential decree that raises pensions and allowances for families of martyrs, people with disabilities, large families, low-income households, and other socially vulnerable groups. This measure is part of the fifth package of social reforms implemented since 2018.

Between 2019 and 2021, Azerbaijan adopted nearly 900 regulatory legal acts aimed at improving the social welfare of around four million citizens. At the beginning of 2023 and 2024, additional social packages were introduced, which raised minimum pensions, salaries, and various other social benefits, while also providing extra payments to several million people.

Overall, since 2018, pensions and allowances have increased fivefold, with more than 8.5 billion manats ($5 billion) allocated to social support programs over the past six years. This positive trend continues in 2025: the current year’s budget dedicates 1.4 billion manats ($820 million) to supporting vulnerable groups, and the latest social package is expected to benefit approximately three million citizens.

“In recent years, several large-scale social reforms have been implemented in Azerbaijan, leading to increases in the minimum wage, social benefits, and pensions. The minimum wage has been raised by 3.1 times, the minimum pension by 2.9 times, the average monthly pension by 2.6 times, and the average monthly salary by 2 times. Additionally, special attention has always been focused on the social protection of families of martyrs and war disabled,” stated Anar Aliyev, Azerbaijan’s Minister of Labour and Social Protection of the Population, during the international forum “Harmonization of social protection systems in the context of the challenges of the modern world,” held in Baku at the end of May.

Azerbaijan plans to improve its pension system further and strengthen the sustainability of the State Social Protection Fund (SSPF) along with other social institutions. It is quite clear that, in the foreseeable future, the key direction of budget policy will continue to focus on enhancing social protection and the well-being of the population.

This is evidenced by the new decree signed on June 12 by President Ilham Aliyev, which provides for an increase in allowances and pensions for families of martyrs, persons with disabilities, women with more than five children, low-income families, and other population groups as part of the fifth package of social reforms since 2018, implemented from the beginning of this year. According to the presidential decree, starting July 1, 2025, the monthly presidential pension for families of martyrs, families of the January 20 martyrs, and families of servicemen who died in Afghanistan will be increased to 700 manats ($411).

Similarly, presidential pensions will be increased for persons with disabilities related to war or the events of January 20, during military service, or while serving at the Chernobyl Nuclear Power Plant. For these categories, pensions will be set as follows: for 81–100% loss of bodily function (Grade I) — 600 manats ($353); for 61–80% loss (Grade II) — 500 manats ($294); and for 31–60% loss (Grade III) — 400 manats ($235).

Payments have also been revised for several other categories: the monthly presidential stipend for those awarded the title “Hero of the Patriotic War” will be 2200 manats; for each individual awarded the title of National Hero of Azerbaijan — 2,000 manats ($1,176); and the personal presidential pension will amount to 1700 manats ($1,000).

A significant part of the document is devoted to improving the social conditions of persons with disabilities, large families, and others. According to the decree, the one-time allowance for the birth of a child will be increased to 600 manats  ($353), and the same amount will be provided as a one-time funeral allowance.

Meanwhile, the monthly allowance for the upbringing of a child with an established disability, placed in a foster family and under 18 years old, will be as follows: 500 manats ($294) for children up to 6 years old, 600 manats ($353) for children aged 7 to 13, and 650 manats ($382) for those aged 14 to 18. The monthly allowance per adopted child will be increased to 240 manats ($141).

In addition, the monthly allowance related to loss of a breadwinner (for each family member) will be 140 manats ($82); the monthly allowance for low-income families with a child under one year old will be 140 manats ($82); the monthly allowance for women with more than five children will be 140 manats ($82) per child. The monthly allowance for children of servicemen performing compulsory active military service will be 140 manats ($82); and the monthly allowance for guardians (custodians) of children who have lost their parents and are deprived of parental care will also be 140 manats ($82).

Allowances for persons with established disabilities related to loss of bodily functions will be set as follows: 300 manats ($176) for 81–100% loss (Grade I), 250 manats ($147) for 61–80% loss (Grade II), and 180 manats ($105) for 31–60% loss (Grade III).

The monthly presidential pension of Azerbaijan for persons with visual disabilities due to 81–100% loss of bodily functions from general causes will amount to 350 manats ($205), while for other persons with Grade I disabilities it will be 250 manats ($147).

Finally, the monthly presidential pension for caregivers of children with disabilities and persons with Grade I disabilities (81–100% loss of bodily functions) will be 120 manats ($70).

The new presidential decree also includes changes to monthly pensions for individuals awarded honorary titles. Thus, those with the title of “People’s” will receive 300 manats  ($176), and those with the title of “Honoured” will receive 200 manats ($117).

The new social package coming into effect in July 2025 will be a significant addition to the increases in benefits and salaries implemented since the beginning of the current year. In particular, it should be recalled that, according to the presidential decree dated December 23, 2024, a package of social reforms is being carried out this year, under which the minimum monthly wage in the country was raised to 400 manats ($235), and the minimum pension was increased to 320 manats ($188) starting February 1.

In addition, all types of pensions have been indexed by 8.1% since the beginning of the year. Overall, this new package of social reforms covers 3 million people, with an additional 1.4 billion manats ($820 million) allocated annually for the increase of their salaries, pensions, benefits, and stipends.