63 and 58 years old: will the retirement age change?
A proposal is being made to gradually raise the retirement age in Uzbekistan.
The Ministry of Economy and Finance has submitted a draft presidential decree aimed at reforming the pension system for public discussion.
The document envisages a number of changes related to the retirement age, the procedure for calculating pensions, and the funded pension system.
According to the draft, starting from January 1, 2028, the retirement age will be increased by three months each year. As a result, by 2039, it is proposed to set the retirement age at 63 for men and 58 for women.
Additionally, from 2027, it is planned to abolish the procedure that allows retirement one year before the general retirement age.
During the period of increasing the retirement age, certain guarantees will be preserved for citizens of pre-retirement age. In particular, employers will be prohibited from dismissing or refusing to hire a citizen due to being of pre-retirement age. Citizens recognized as unemployed will also retain the right to retire two years earlier than the established period.
It is proposed to preserve the existing preferential pension procedure for citizens working in heavy and hazardous working conditions.
The draft envisages a gradual expansion of the salary period taken into account when calculating the pension amount. Starting from 2027, the calculation period will be extended by one year annually, reaching up to 20 years. In this case, it is proposed to exclude 10 percent of the period during which the citizen received the lowest income from the calculation.
The minimum work experience required for an old-age pension will also be increased. The current requirement of at least seven years of experience will be increased by one year annually, and is planned to reach 15 years by 2034.
According to the draft, starting from 2027, certain citizens may voluntarily direct 5 percent of their salary to a funded pension account. It is proposed to allocate additional funds from the state budget of up to 50 percent to such contributions.
Citizens may also be given the opportunity to participate in placing accumulated funds in investment and financial instruments. From 2030, it is proposed to allow the use of these funds for the treatment of serious illnesses and as a down payment for mortgage loans.
It is also envisaged to transfer the funded pension system from "Xalq" bank to the management of the Pension Fund starting next year. The funds in the account will be considered the personal property of the citizen and may be inherited.
From 2027, it is proposed to introduce a system of paying social tax in a fixed amount for self-employed individuals. They will have the opportunity to pay the tax in installments throughout the year.
It is planned to direct 10 percent of the social tax to the State Social Insurance Fund and to pay pregnancy and childbirth and temporary disability benefits from this account.
Furthermore, it is proposed to introduce reduced working hours with average salary preserved for women over 55 and men over 60.
The document currently has draft status and is undergoing public discussion.
