Uzbekistan’s Pension System Enters a New Reform Phase
Uzbekistan
Uzbekistan has begun preparations for a comprehensive pension reform, although its practical implementation will require further analytical work. The International Monetary Fund (IMF) says a draft reform concept has already been prepared, but major decisions will only be made after assessing the long-term sustainability of the pension system.
According to the IMF, the authorities have drafted a pension reform concept and launched the necessary consultations. However, the Fund notes that the reform remains at an early stage because an actuarial assessment of the system's medium- and long-term financial sustainability has not yet been completed.
The IMF stresses that the results of this assessment should serve as the basis for future policy decisions. Until then, it recommends postponing other large-scale reforms that could significantly increase budget expenditures, including changes to the public sector wage system. Experts believe a permanent salary scale for civil servants should not be introduced before 2027, after evaluating the fiscal impact of reforms in healthcare, education, and the pension system.
The Fund also advises against increasing mandatory pension contribution rates, warning that higher payroll costs could burden employers, negatively affect the labor market, and create additional risks in a still-developing financial sector.
Work on the pension reform has been underway since 2024. A government working group has already prepared the draft concept, while international experts continue to provide technical assistance. At the same time, Uzbekistan's Pension Fund has emphasized that no final decision has been made on raising the retirement age, and all proposals are being carefully assessed in light of the country's social and economic conditions.
The IMF stresses that the results of this assessment should serve as the basis for future policy decisions. Until then, it recommends postponing other large-scale reforms that could significantly increase budget expenditures, including changes to the public sector wage system. Experts believe a permanent salary scale for civil servants should not be introduced before 2027, after evaluating the fiscal impact of reforms in healthcare, education, and the pension system.
The Fund also advises against increasing mandatory pension contribution rates, warning that higher payroll costs could burden employers, negatively affect the labor market, and create additional risks in a still-developing financial sector.
Work on the pension reform has been underway since 2024. A government working group has already prepared the draft concept, while international experts continue to provide technical assistance. At the same time, Uzbekistan's Pension Fund has emphasized that no final decision has been made on raising the retirement age, and all proposals are being carefully assessed in light of the country's social and economic conditions.
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