Tashkent, Uzbekistan (UzDaily.uz) — Uzbekistan has proposed gradually raising the standard retirement age from the current 60 years for men and 55 years for women to 63 and 58 years, respectively. The relevant draft presidential decree was published by the Ministry of Economy and Finance on the regulation.gov.uz portal.
Raising the retirement age
The changes are proposed to begin on 1 January 2027. From that date, the current procedure for granting pensions with a one-year reduction in the standard retirement age is planned to be abolished.
Starting from 1 January 2028, the retirement age is proposed to increase by three months annually, reaching 63 years for men and 58 years for women by 2039.
Requirements for employment history and pension calculation
At the same time, the document provides for an increase in the minimum employment record required to qualify for an old-age pension. From the current seven years, it will increase by one year annually and reach 15 years by 2034.
The period of earnings taken into account when calculating pensions will also be expanded from five to 20 years. At the same time, 10% of the period with the citizen’s lowest income will be excluded from the calculation.
For citizens with high incomes who continue working after reaching retirement age, the upper limit of salary taken into account when a pension is first granted is proposed to be increased from 12 times to 13 times the basic calculated amount of the pension from 1 April 2028. If retirement is postponed by six months, the limit would rise to 14 times, and if postponed by 12 months, to 15 times.
Reform of the funded pension system
The reform will also affect the funded pension system. From 1 January 2027, citizens whose average salary does not exceed 15 times the basic calculated amount, and who voluntarily transfer 5% of their salary to a funded pension account, will receive a state budget contribution of up to 50% of that amount.
For higher-income citizens, 1% of salary above this threshold will be transferred to the funded pension account from the social tax. This share will increase to 2% from 2033 and to 3% from 2040.
Citizens will be allowed to invest their accumulated funds independently. From 2030, the funds may also be used to treat serious illnesses and make an initial mortgage payment.
It is proposed to transfer administration of the funded pension system from JSC Xalq Bank to the Pension Fund under the Ministry of Economy and Finance, while accumulated funds will remain the personal property of citizens and will be inheritable.
The Pension Fund will receive an additional 31 staff positions funded from the state budget. A project office involving international consultants will also be established under the fund to develop the funded pension system.
The recording of contributions and individual pension accounts is planned to be gradually transferred by the end of 2027 from the unified database of JSC Xalq Bank to the Pension Fund’s information system.
The Ministry of Economy and Finance is to prepare, by 1 January 2027, a document on the organizational structure, management and establishment of a supervisory board for the funded system.
By 1 June 2027, it is to prepare a draft presidential decree on transitioning to a notional defined-contribution system of individual accounts with state support.
By the end of 2027, together with the Central Bank and other agencies, the ministry will submit to the Cabinet of Ministers a draft law on establishing private and corporate pension funds.
Social tax for self-employed citizens
From 2027, self-employed citizens will be required to pay social tax, with the option of splitting payments throughout the year. Ten percent of these contributions will be directed to the State Social Insurance Fund to provide maternity and temporary disability benefits.
Guarantees for citizens of pre-retirement age
The document also establishes a number of guarantees for the transition period, including a ban on dismissal or refusal to hire a person because of pre-retirement age.
Citizens recognized as unemployed will have the right to retire early by two years. Pensioners will retain tax, transport and medical benefits, as well as the right to preferential pensions for those employed in underground and hazardous work — men aged 50–55 and women aged 45–50.
Men will have the right to access funded pension savings from the age of 60, while women will have this right from the age of 55.
Women over 55 and men over 60 will be granted reduced working hours while retaining their average salary. When providing material assistance to low-income families, citizens in these age groups will not be required to confirm official income.
Financing
Expenses related to unpaid periods of insurance history and additional payments to bring pensions up to the minimum level will be covered from the state budget starting from 1 January 2027.
At the same time, no new social tax benefits for enterprises will be introduced, while existing benefits will be abolished from 1 January 2030.
Educational and awareness measures
Starting from the 2027/2028 academic year, schools and universities in economics, finance and social security programs are planned to gradually introduce educational modules on state and funded pension systems, as well as the basics of social insurance.
The Association of Mahallas, together with the Pension Fund, will organize a monthly “Pension Day” featuring short courses on financial literacy in this area.
The Cabinet of Ministers has been instructed to ensure broad public awareness of the decree through relevant ministries and the National Television and Radio Company.
