Pension calculation to change starting from January 1, 2019

In accordance with the law “On provision of state pension for citizens”, signed by the President of Uzbekistan on December 24, few amendments have been introduced to the document.

It was reported that starting from January 1, 2019, insurance contributions of citizens to the off-budgetary Pension Fund, deducted from the incomes of citizens in the form of wages, are abolished.

Therefore, starting from 2019, a new procedure is established for recording employment experience and determining the average monthly earnings for the purpose of granting pensions.

To account for the period of employment after this date, in view of the cancellation of insurance premiums, any work with income accrual in the form of wages will be considered.

Accordingly, in earnings for the calculation of pensions, as well as in the physical part of earnings will be included:

•  all income in the form of wages, on which insurance premiums were charged (for the period of work until January 1, 2019);

•  all accrued income in the form of wages (for the period of work after January 1, 2019).

The procedure for calculating pensions for employees (individual entrepreneurs, employees employed by them, members of farming and family members of a private business entity), whose working time cannot be counted is also specified. Calculation of their pension will be determined on the basis of the amount of insurance premiums paid for the period before January 1, 2019, after this date - on the basis of the amount of the unified social payment (USP) paid.
 
A similar procedure for calculating pensions will apply to citizens working abroad independently.