Social Security Fund

The history of the formation of the State Social Defense Fund of Azerbaijan Republic, the country\'s economic relations, as well as social insurance and pension benefits is directly attributable to the dynamics of radical changes.

During the Soviet Union pension system in Azerbaijan, social insurance and pension issues is based on the principle of independent insurance without payment. Necessary financial resources were taken just from the state budget or payments of enterprises.

Social Insurance Fund of the USSR was established in 1990, and irrespective of the subordination all enterprises, institutions, organizations, cooperatives, state farms, collective farms and other organizations had to make contributions to its account. Later in 1991, the Social Insurance Fund of the Azerbaijan Soviet Socialist Republic was established under the auspices of the Council of Trade Unions.

After the declaration of the Constitutional act on restoration of independence by the people of Azerbaijan Azerbaijani Branch of Pension Fund of the USSR was transformed to Pension Fund of the Republic of Azerbaijan by the Decree of the President of the Republic of Azerbaijan (16.12.1991).

 By the Law of the Republic of Azerbaijan w.e.f. June 1, 1992 it has been determined that allotments on social insurance will constitute 40% of salary fund. 85% of the given amount is paid to Republic Pension Fund and 15% to the Social Insurance Fund.

In order to improve the management of financing of social insurance and pension provision the State Social Defense Fund of Republic of Azerbaijan was established on the basis of the Pension Fund and the Social Insurance Fund of the Republic of Azerbaijan by Decree of the President of the Republic of Azerbaijan, dated September 30, 1992. 

The State Social Defense Fund of the Republic of Azerbaijan is the central executive authority implementing management in the field of mandatory state social insurance, labor pensions in the Republic of Azerbaijan