“A concept for reforming the pension supply will be developed in Uzbekistan by April 1, 2019” – Deputy Minister of Finance

This year, the off-Budget Pension Fund has experienced a deficit (4,7 trillion soums) and it will be covered from the state budget. Deputy Finance Minister Dilshod Sultonov informed Kun.uz about it.

“Reforms in the pension sector were needed. As of January 1, 2019, the Fund had more than 5 trillion soums of free balance. After introducing a single 12% of social payment, we had to increase people's retirement benefits. People need to be accustomed to earning the pension by paying taxes, paying without hiding their salaries,” Sultonov said.

“Until 2019, the basic amount for pension calculation was 8 times the minimum monthly wage - about 1,6 million soums. Even though your monthly salary is 10 million, your pension is calculated by maximum of 1,6 million soums. In accordance with the presidential decree, this unjust system will be gradually changed. For example, starting from this year, the basic amount for the calculation of pension has been set at 10% of the MMW. This means an additional 1 trillion soums,” he noted.

According to the Deputy Minister, it has been unfair to pay only 50% pension for working pensioners.

“What was the consequence? Pensioners have worked, but they did not show any passion, as there was no incentive. Some people have officially concealed their salaries and did not work in the document,” Mr. Sultonov added.

The Deputy Minister of Finance stated that a concept for reforming the pension supply will be developed in Uzbekistan by April 1.