OREANDA-NEWS. October 28, 2009. The State Social Protection Fund of Azerbaijan (DSMF) is ready to fight for keeping the current rate of compulsory state socila insurance fee.

Fund’s chair Salim Muslimov says that in the next few years the rate of withholdings for compulsory social insurance will be kept at the level of 25%.

“We are interested more in growth of size of wages (as it will lead to increase of DSMF revenues) than to increase of social insurance fee rate,” Muslimov said.

At the same time employers pay 22% as fees from wage fund and the employee 3% from his wage.

“Many entrepreneurs consider the current fee transfer rate of 22% high and experience problems with payments on compulsory insurance. It especially concerns small employers operating in regions. If to compare with other CIS member countries, Azerbaijan has the lowest compulsory social fee rate. In Russia, for example, it is planned to increase fee rate for compulsory social insurance up to 34% since 2011 that will allow ensuring essential rise of pension size. For us such option does not suit ad that is why we are going to keep rate at the current level,” Muslimov said.

In 2008 the government stated that there will not be any increase of pension age. But yesterday Milli Majlis passed the relevant pension law amendment and in case of their signing by the country’s president, raising of pension will start since 1st January 2010.