Support to State Social Protection Fund


   New Social security card

During the first years of its independence Azerbaijan suffered a severe economic crisis which quickly resulted in collapse of the social safety nets maintained during the Soviet era, leaving the displaced, the disabled, single mothers, and the elderly particularly vulnerable. The Government saw the urgent need for implementing relevant policy measures, including the policies for social protection of the elderly and other vulnerable groups of people. Existing pension system was not fitting the needs of current-day Azerbaijan, since the pension administration system was completely out-dated. In September 2003 the Government of Azerbaijan and UNDP signed a project to support the national reforms in the pension system and to incorporate advanced ICT systems in the operations of the State Social Protection Fund (SSPF), the key government agency for pension reforms. The Project will strengthen the capacity of the SSPF to conduct its responsibilities in efficient, transparent and accountable manner, thus increasing its overall effectiveness. The project assists SSPF in enhancing the managerial and data processing capacity, establish pension system based on individual accounts covering all territory of Azerbaijan.

Project Goals

The Project aims to:

• Significantly increase the managerial and technological capacity of SSPF;

• Maintain transparency in and improve efficiency of the social insurance and pension provision systems in Azerbaijan;

• Automate main operational processes and data exchange procedures;

• Setup efficient communication between SSPF headquarters and local and regional branches; and

• Increase efficiency of ICT use though improvement of computer literacy and skills of SSPF personnel.

Project Accomplishments

  • Development of ICT system has led to dramatic reduction of paper use, to higher productivity (‘what used to take weeks now takes hours’) and to work quality improvement.
  • Improved quality of services to clients, such as shorter processing times, timely payment of pensions, and greater transparency.
  • By the end of 2011, over 1.9 million workers (almost 97% of the target) had received their social insurance cards.
  • The pension calculation process was designed to minimize personal contact, to reduce the risk of fraud and abuse, and to make easily understandable and transparent for the population.
  • SSPF staff believes that public satisfaction with the system is high, and the number of complaints was reduced drastically. 


Donors Amount of contribution, US$





Delivery by years

Fiscal Year Amount of disbursement, US$



2012 1 022 670

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