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Uzbekistan proposes pension reform raising salary period to 20 years

2 min
Uzbekistan proposes pension reform raising salary period to 20 years

This digest was compiled by AI from multiple sources — links to the originals are below.

Uzbekistan has published a draft pension reform for public discussion. The proposal would gradually raise the salary period used to calculate pensions from five to 20 years and increase the retirement age from 2028. Self-employed citizens would pay mandatory social tax in exchange for maternity and sick leave benefits.

Key Facts

  • The draft proposes gradually raising the salary period used to calculate pensions from five to 20 years.
  • The retirement age would increase by three months each year starting in 2028.
  • Self-employed citizens would pay mandatory social tax and gain access to maternity and sick leave benefits.
  • Pensioners are projected to rise from 11 percent of the population today to 15 percent by 2040.
  • The reform includes a voluntary funded pension component where workers can contribute 5 percent of their salary.

Pension Calculation Changes

The draft proposes gradually raising the salary period used to calculate pensions from five to 20 years. The retirement age would increase by three months each year starting in 2028. Pension Fund officials Sardor Fayzullayev and Abror Kholmatov discussed the changes with Kun.uz. Fayzullayev said the goal is to provide citizens with a decent pension in old age and match pension amounts to social tax paid.

Self-Employment and Funded Pensions

Self-employed citizens would pay mandatory social tax and gain access to maternity and sick leave benefits. The reform includes a voluntary funded pension component where workers can contribute 5 percent of their salary. The draft aims to move informal sector workers into the formal sector and expand pension coverage.

Demographic Pressure

Pensioners are projected to rise from 11 percent of the population today to 15 percent by 2040. Life expectancy has increased since the pension law set retirement ages at 60 for men and 55 for women. The pension receipt period has grown from five years for men and 15 for women in the 1990s to 13 and 22 years today. Fayzullayev said the growing number of pensioners places a financial burden on the next generation.

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