According to a draft presidential decree published by Uzbekistan's Ministry of Economy and Finance, the retirement age will be increased by three months annually starting in 2028, reaching 63 for men and 58 for women by 2039. Currently, the ages are 60 and 55, respectively. The draft has been released for public discussion.
The document stipulates that from January 1, 2027, the period of last five years of employment considered in pension calculations will be increased by one year annually, eventually reaching 20 years. When determining the average salary, 10% of the citizen's lowest-income period will be excluded from the calculation. From the same date, the minimum work experience required for old-age pension, currently 7 years, will also be gradually increased by one year annually, reaching 15 years by 2034. Citizens without the minimum experience will retain the right to receive an old-age allowance five years after the generally established retirement age.
From April 1, 2028, to further incentivize citizens who pay social tax on high incomes and continue working at retirement age, the upper limit of salary for the first pension assignment will be increased: from 12 to 13 times the base amount for pension calculation, up to 14 times if retiring 6 months later, and up to 15 times if retiring 12 months later. The draft also proposes changing the retirement age to ensure proportionality between increasing life expectancy and the period of citizens' participation in the pension system.
From January 1, 2027, it is proposed to abolish the procedure for assigning pensions with a one-year reduction in the generally established retirement age. During the period of raising the retirement age, guarantees are established for pre-retirement age citizens: dismissal or refusal to hire based on pre-retirement age is prohibited. Citizens recognized as unemployed retain the right to early retirement two years before the deadline. The right to preferential pensions for men aged 50-55 and women aged 45-50 working full-time in underground work, harmful and heavy conditions is also preserved. Tax, transport, and healthcare benefits for pension recipients are maintained. Additionally, it is proposed to grant men from age 60 and women from age 55 the right to receive accumulated pension funds.
The Ministry of Economy and Finance is tasked with submitting to the Cabinet of Ministers by December 1, 2026, a draft law on relevant amendments and additions to the laws "On State Pension Provision of Citizens" and "On Accumulative Pension Provision of Citizens," as well as the Tax Code. From January 1, 2027, to guarantee future pension provision and access to state social insurance for self-employed individuals, a system of paying social tax in a fixed manner is introduced. They will be granted the right to pay social tax in installments throughout the year. 10% of the social tax paid by self-employed individuals will be directed to the State Social Insurance Fund, and maternity and temporary disability benefits will be paid from state social insurance funds.
For women over 55 and men over 60, reduced working hours with average salary preservation are introduced. When assigning material assistance to low-income families, official income from women over 55 and men over 60 is not required to determine family member status. From January 1, 2027, a system is introduced to cover from the State Budget expenses related to periods counted in work experience but for which social tax and insurance contributions to the Pension Fund were not paid, as well as costs related to bringing pensions to the minimum amount, supplements, and additional payments. Enterprises and organizations are not allowed to receive new benefits on social tax payments, and existing benefits are abolished from January 1, 2030.
In July last year, the Agency for Strategic Reforms reported that due to high informal employment, pension system coverage in Uzbekistan is only 38%. Despite the high contribution rate compared to other countries (12-25%), payments remain at an average level. In December 2024, a seminar on pension reform was held, and preparation of a conceptual document began. It is planned to be submitted to the president by September 2025 (initially by March 1, 2025). In April 2023, the World Bank in its report "Improving the Efficiency of State Expenditures on Human Capital and Water Infrastructure in Uzbekistan" recommended raising the retirement age. The International Monetary Fund also emphasized that Uzbekistan's current pension system requires reforms, including raising the retirement age, abolishing preferential rates, and transitioning to automatic indexation of payments.
Source: www.gazeta.uz