Why Is the One-Time Funeral Allowance Not Available to Everyone?

Next year, the one-time social allowance for funerals is forecasted to remain at 960 manats. This figure is reflected in the 2025 budget package. However, the allowance is not granted to everyone.

Under existing rules, the funeral allowance is provided through mandatory state social insurance contributions only if the deceased was insured or a pensioner. The amount for insured individuals is 500 manats, while for pensioners, it equals three times the minimum pension amount at the time of death. For this year, pensioners receive 840 manats in funeral allowance.

Some have expressed dissatisfaction with the insufficiency of the allowance. Complainants note that while burial plots are legally free, they are often sold at a high cost. Additionally, expenses for digging the grave and other traditional funeral procedures require substantial sums of money.

According to a Cabinet of Ministers decision from December 4, 2018, titled "Rules for the Establishment and Management of Cemeteries," burial plots in Azerbaijani cemeteries are provided free of charge, with funeral costs paid as a fee.

Elchin Mammadov (name changed), a resident of Baku, shared his experience with Radio Azadliq. He said, "A relative of mine passed away. They read out the prices at the cemetery: 1,300 manats for the plot, additional fees to dig the grave, and fees for washing the deceased. Not to mention the costs of mourning ceremonies. Our deceased relative had not retired, and their job was informal. I don’t even know if we’ll receive this funeral allowance."

Elshad Musayev, Deputy Chair of the Parliamentary Committee on Labor and Social Policy, told Turan that the allowance was discussed in committee meetings, and the draft law on "The State Budget of the Republic of Azerbaijan for 2025" has passed its second reading. "No further changes are expected," he said, adding: "As the state's budget grows, social assistance should also increase. The current increase matches available resources. I believe social aid and allowances should grow further. However, this depends on the budget, which determines the extent of increases. The current funds have been distributed fairly."

For 2025, the state budget revenue is projected at 38.3 billion manats, and expenses at 41.4 billion manats, reflecting an increase of over 1 billion manats in both revenue and expenditure compared to this year.

Musayev also emphasized that next year’s budget is socially oriented: "Defense and security expenses make up 20.3%. Over 4 billion manats will be allocated for reconstruction and development in Karabakh next year. Social spending constitutes 41% of the total expenses."

Economist Rashad Hasanov told Azadliq Radio that funeral allowances are funded through insurance contributions, a mechanism financed by citizens' mandatory insurance payments.
"This qualifies as an insurance event and does not apply to those who haven’t made insurance payments. It’s also seen as a minor incentive for formalizing the labor market."

Hasanov suggested that if in the future the allowance is to be provided universally, it could be funded in one of two ways: either through contributions from insured individuals or through the state budget.

"I don’t think it’s appropriate to fund this from the contributions of insured individuals," he added.

Hasanov believes that the high cost of burial plots reflects the underdevelopment of local self-governance in Azerbaijan.

"In normal circumstances, such community concerns should be addressed by municipal institutions. Municipalities are allocated land for this purpose. A budget may be required only for maintaining these plots and cemeteries, which could then be financed through specific user fees."

Efforts to obtain comments from municipalities on the issue were unsuccessful.