DRAFT LAWS ON PROVISION OF PENSIONS AND SOCIAL INSURANCE UNDER PREPARATION

The draft law on provision of pensions to improve this system is now being worked out. According to chairman of the Milli Majlis permanent commission on social policy A. Rajabli, there are 1 million 280 thousand pensioners or 15,6 percent of the population in Azerbaijan. Under the President Heydar Alyev’s August 4, 2003 decree, the amount of average pension of 1 million 143 pensioners or 90 percent raised from 88 thousand to 116 thousand AZM. President Ilham Aliyev set a goal to create an appropriate legal base to further improve the living standards of poor people.

The decree of President Ilham Aliyev “On measures for Acceleration of Social and Economic Development in Azerbaijan Republic” of November 24, 2003 says that to improve provision of pensions for the population, the draft law on speeding up reforms in the sphere of social insurance and pensions provision must be worked out and submitted to the President in 2 months. At present, executive bodies and experts of parliament are involved into this process. The new law will contain indexation, …etc. collection of social insurance is the vital issue to improve the provision of pensions. According to official statistics, there are about 3 million 743 thousand employed people. 1 million 303 of them are involved in social insurance. It means that one worker falls at one pensioner.

Another new draft law “On social insurance” is expected to be submitted to President soon. The approval of both documents should entail drastic changes.