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Has the minimum wage been increased to 60 percent of the average monthly wage?

Has the minimum wage been increased to 60 percent of the average monthly wage?

Short summary of the news

- In the "Azerbaijan 2020: Look Into the Future" Development Concept approved by the Decree of the President of the Republic of Azerbaijan dated December 29, 2012, it is written that measures will be taken to increase the minimum wage to 60 percent of the average monthly wage.

- In 2012-2020, the ratio of the minimum wage to the average monthly wage in Azerbaijan increased from 24% to 36%.

- The government failed to raise the minimum wage to 60 percent of the average monthly wage.

"In order to ensure a decent standard of living for working citizens, depending on the development of the economy, measures will be taken to gradually bring the minimum wage to the minimum living standards and to the amount of 60 percent of the average monthly wage established in European countries."

This is written in the Development Concept "Azerbaijan 2020: Look Into the Future" approved by the Decree of the President of the Republic of Azerbaijan dated December 29, 2012.

Fakt Yoxla examined whether the government has fulfilled its promise.

Table: Ratio of the minimum wage to the average monthly wage in Azerbaijan in 2012-2022

As can be seen from the table, the ratio of the minimum wage to the average monthly wage in Azerbaijan increased from 24% to 36% in 2012-2020.

As for the measures taken in the direction of increasing the minimum wage, during the period covered by the concept, several decisions were made regarding the increase of the minimum wage. According to the relevant orders of the President, the minimum wage in the country was increased from 93.50 manats to 105 manats on September 1, 2013, from 105 manats to 116 manats on January 1, 2017, from 116 manats to 130 manats on January 1, 2018, from 130 manats to 180 manats on March 1, 2019, and from 180 manats to 250 manats on September 1, 2019. Despite these steps, the government could not raise the minimum wage to 60 percent of the average monthly wage, as the average monthly wage also increased during that period.

Fakt Yoxla concludes that the government has not fulfilled its promise.

Azerbaijan 2020: Look Into the Future" Development Concept

“State Statistical Committee”, Minimum wages

“State Statistical Committee”, Macroeconomic indicators 2012

“State Statistical Committee”, Macroeconomic indicators 2013

“State Statistical Committee”, Macroeconomic indicators 2014

“State Statistical Committee”, Macroeconomic indicators 2015

“State Statistical Committee”, Macroeconomic indicators 2016

“State Statistical Committee”, Macroeconomic indicators 2017

“State Statistical Committee”, Macroeconomic indicators 2018

“State Statistical Committee”, Macroeconomic indicators 2019

“State Statistical Committee”, Macroeconomic indicators 2020

“State Statistical Committee”, Macroeconomic indicators 2021

“State Statistical Committee”, Macroeconomic indicators 2022

“e-qanun.az”, Order on increasing the minimum wage (2013)

“e-qanun.az”, Order on increasing the minimum wage (2017)

“e-qanun.az”, Order on increasing the minimum wage (2018)

“e-qanun.az”, Order on increasing the minimum wage (March 2019)

“e-qanun.az”, Order on increasing the minimum wage (September 2019)

 

Promise broken
  • 1 June, 2023
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