Foreigners will help reform Uzbekistan's pension system
Starting from 2027, Uzbekistan plans to launch a large-scale reform of the pension system. A project office will be established under the extra-budgetary Pension Fund, with the participation of international consultants, who will focus on developing funded pensions and designing mechanisms for the financial sustainability of the system. This is envisaged by a draft presidential decree prepared by the Ministry of Economy and Finance. One of the key changes is the transfer of the funded pension system from "Xalq Banki" […]
Foreign Specialists to Help Reform Uzbekistan's Pension System
Starting from 2027, Uzbekistan intends to embark on a large-scale upgrade of its pension system. It is planned to establish a project office under the extra-budgetary Pension Fund, with the participation of international consultants, who will focus on developing funded pensions and working out mechanisms for the financial sustainability of the system. This is envisaged by a draft presidential decree prepared by the Ministry of Economy and Finance.
One of the main innovations will be the transfer of the funded pension system from "Xalq Banki" to the Pension Fund under the Ministry of Economy and Finance. To support the fund's operations, an additional 31 staff positions will be allocated, and their maintenance will be financed from the State Budget.
The state also intends to encourage voluntary pension savings. Starting from 2027, if a citizen contributes 5% of their salary, budget support could reach up to 50%.
In addition, for the portion of the salary exceeding 15 times the base calculation value, it is proposed to direct 1% of the social tax to the funded pension account. From 2033, the rate is planned to be raised to 2%, and from 2040 — to 3%.
It is proposed to recognize the accumulated funds and the income from their investment as the personal property of citizens with the right of inheritance. Starting from 2030, it is also planned to allow their use for the treatment of severe illnesses and for making a down payment on a mortgage.
The reform will also affect employment history requirements. The minimum work experience required for a pension allocation is planned to be increased from seven to 15 years. The increase will take place in stages: starting from 2027, the requirement will begin to increase annually, reaching 15 years by 2034.
For those who lack sufficient work experience to qualify for a pension, an old-age allowance will be provided. However, it will only be available five years after reaching the generally established retirement age.
The methodology for calculating pensions will also change. Starting from 2027, the period of salary taken into account will begin to increase annually by one year — from five to 20 years. At the same time, it is proposed to exclude 10% of the period with the lowest income from the calculation.
Concurrently, the authorities intend to financially incentivize those who decide to delay retirement. From April 2028, the maximum salary limit taken into account when calculating a pension is planned to be increased from 12 times to 13 times the base calculation value.
If retirement is deferred by six months, the limit will rise to 14 times the base calculation value, and if deferred by a year — to 15 times.
For now, this refers to a draft presidential decree. The proposed changes will only come into force if it is adopted.