Bank Of Baku

Azerbaijan may increase social insurance premiums

Azerbaijan may increase social insurance premiums
# 13 October 2010 11:41 (UTC +04:00)
According to him Azerbaijan establishes system of 3-stage pension maintenance: “The first system is guided by the principle of solidarity, nominal collection and the system in force. The second is guided by real collection and the third is guided by private pension funds.”

He says that the social insurance premium have to be reached 35% for operation of 1st and 2nd systems normally: “It would be better to pay the most parts of increased 10% on the employees’ accounts.”

Note that the rate of social insurance premiums is 25%. 22% of this is paid by employer and 3% by worker.

He also noted that the number of registered hired workers paying the social insurance premium is 1.360 mln, pensioners are 1.300 mln persons, workers in agriculture are 300 000 persons.
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