BASIC PENSION INCREASES 11.3%, NOT 20%

    BAKU/01.09.10/TURAN: The basic pension in Azerbaijan increased from AZN 75 to AZN 85 ($106) in Azerbaijan on September 1. This corresponded to the Azerbaijani President"s decree of August 31.
     The sums added to the basis parts of the pensions of national heroes, heroes of war, etc. have also increased.
     The President, Ilham Aliyev, announced his decision to increase the basic pension in mid-July.
     The salary and pension rise is to reduce the poverty level of 11%.
     The President also promised to raise the minimum salary in Q3.
     The parliament decided to raise the state budget"s income and expenditure items for 2010 in June. The change will total AZN 1.5 billion. The money will be partly spent on social targets (salaries and pensions).
     The independent Economic Research Center (ERC) predicted increase in the basic pensions by 20%, and not by 11.3% in the way it took place.
     The Minimum Cost of Living in 2010 law of Azerbaijan stipulates AZN 87 (AZN 68 for pensioners). ERC calculated that the minimum cost of living was AZN 111.43 for pensioners in July.
     The minimum salary and pension was last increased to AZN 75 in September 2008. This covered 600,000 people receiving salaries from the state budget. Overall 1.3 million people receive pensions, most of them having the minimum level. -01A-