Pension reform in Uzbekistan is already on the way
In Uzbekistan, large-scale changes to the pension system are being prepared. The draft presidential decree by the Ministry of Economy and Finance has already gathered nearly 62,000 views on Regulation.gov, with more than 1,500 users supporting it. If the document is adopted, the minimum work experience required for a pension will increase from 7 to 15 years. It will be raised annually starting from 2027 — by 2034, the requirement will reach 15 years. For those whose work experience […]
Pension reform in Uzbekistan is just around the corner
Major changes to the pension system are being prepared in Uzbekistan. The draft presidential decree by the Ministry of Economy and Finance has already garnered nearly 62,000 views on Regulation.gov, with more than 1,500 users supporting it.
If the document is adopted, the minimum length of service required for a pension will be increased from 7 to 15 years. The increase will be introduced annually starting from 2027 — by 2034, the requirement will reach 15 years.
Those who do not have enough length of service will retain their old-age allowance. However, it will only be available five years after reaching the standard retirement age.
At the same time, the pension calculation procedure will also change. Starting from 2027, the period of salary taken into account will begin to increase annually by one year from the current five years. Ultimately, the calculation will be based on 20 years. At the same time, it is proposed to exclude 10% of the period with the lowest income.
There are plans to provide additional financial incentives for delayed retirement. From April 2028, the upper limit of the salary taken into account will be increased from 12 to 13 times the base value. If retirement is deferred by six months, it will be 14 times, and by a year — 15 times.
### Savings as personal property
Starting from 2027, the state plans to make co-payments to citizens for voluntary pension savings: with a contribution of 5% of the salary, budget support will be up to 50%.
For the portion of the salary exceeding 15 times the base value, 1% of the social tax will be directed to a savings account. From 2033, this will be 2%, and from 2040 — 3%.
It is proposed to recognize savings and income from their investment as the personal property of the citizen with the right of inheritance. From 2030, it will be permitted to use them for the treatment of serious illnesses and for a down payment on a mortgage.
At the same time, there are plans to transfer the funded pension system from "Xalq Banki" to the Pension Fund under the Ministry of Economy and Finance.
The draft is currently undergoing public discussion and is subject to change.