In Uzbekistan, the calculation of pensions will be changed and co-payments to pension savings will begin
Starting from 2027, the earnings period taken into account when calculating pensions in Uzbekistan will be gradually increased to 20 years, excluding the 10% of the period with the lowest income from the calculation. At the same time, the state will begin to make co-payments to voluntary pension savings.
In Uzbekistan, the pension calculation procedure will be changed, and top-ups to pension savings will be introduced
Starting from 2027, Uzbekistan plans to revise the pension calculation mechanism and expand the funded pension system. These changes are envisaged by a draft presidential decree on reforming the pension system, which has been published for discussion.
From January 1, 2027, it is proposed to increase the earnings period taken into account when assigning a pension by one year annually until it reaches 20 years.
In parallel, when determining average earnings, 10% of the period with the citizen's lowest income will be excluded from the calculation.
For high-income citizens who continue to work after reaching retirement age, the maximum amount of earnings taken into account when first assigning a pension will be increased from April 1, 2028.
For regular retirement, it is proposed to raise the maximum earnings from 12 to 13 base values for calculating pensions (from 6.048 million to 6.552 million soums). If a person postpones retirement by six months, the limit will be 14 values, and with a delay of one year — 15 (7.56 million soums).
From January 1, 2027, it is proposed to provide a state top-up to voluntary pension savings for citizens with an average monthly salary below 15 base values for calculating pensions.
If a citizen independently transfers 5% of their salary to a funded pension account, up to 50% of the deposited amount can be additionally transferred to them from the state budget. The amount of the top-up will be differentiated.
In addition, 1% of the portion of the salary exceeding 15 base values for calculating pensions will be directed to an individual funded account at the expense of the social tax. From 2033, this figure is planned to be increased to 2%, and from 2040 — to 3%.
Citizens will also be given the opportunity to participate in choosing investment and financial instruments for placing pension savings. The generated income will be credited to their accounts.
From 2030, the accumulated funds will be allowed to be used not only after retirement, but also for the treatment of serious illnesses and for a down payment on a mortgage.
From January 1, 2027, it is proposed to transfer the funded pension system from the People's Bank (Xalq Banki) to the Pension Fund under the Ministry of Economy and Finance.
Funds in funded accounts, including state top-ups, transfers at the expense of the social tax, and investment income, will be considered the personal property of the citizen. The right to inherit these funds will be preserved.
By the end of 2027, information on contributions and savings must be phased from the information system of the People's Bank to the system of the Pension Fund.
At the same time, the authorities intend to create a legal framework for the emergence of private and corporate pension funds. The corresponding draft law must be submitted to the Cabinet of Ministers by the end of 2027.
As a reminder, this draft proposes to increase the retirement age annually by three months starting from 2028. By 2039, it should reach 63 years for men and 58 years for women. At the same time, the minimum work experience required for assigning a pension is planned to be increased from 7 to 15 years by 2034.