Exploring Azerbaijan's Minimum Wage: Understanding The Basics

Azerbaijan has a government-mandated minimum wage that all employers must abide by. The minimum wage in Azerbaijan was last changed on January 1, 2023, from AZN300 to AZN345 per month (or €155.7 per month). This amounts to 202.941 USD per month or 105 Azerbaijani manat per month.

Minimum wage in Azerbaijan in 2023

As of 2023, the minimum wage in Azerbaijan is AZN345.00 per month. This amount came into effect on January 1, 2023, and represents an increase from the previous minimum wage of AZN300 per month. In US dollars, the minimum wage in Azerbaijan in 2023 is approximately USD202.94 per month.

According to Article 89 of the Labour Code of Azerbaijan, the daily work norm cannot be longer than 8 hours, and the weekly work norm cannot exceed 40 hours. This means that a monthly wage of an employee who has worked according to the monthly norm of working time cannot be less than the minimum wage set by the state.

The minimum wage in Azerbaijan is the lowest amount that a worker can be legally paid for their work. It is a government-mandated rate that all employers must abide by. If employers in Azerbaijan fail to pay the minimum wage, they may face punishment by the government.

The minimum wage rates vary across countries, and Azerbaijan is among the countries with a lower minimum salary compared to others. For context, the minimum wage in Azerbaijan in 2022 was 300 Manat per month, which was equivalent to €155.7 per month or 1,868 euros per year, considering 12 payments per year.

Minimum wage in Azerbaijan in 2022

In 2022, the national minimum wage in Azerbaijan was €155.7 per month or €1,868 per year (taking into account 12 payments per year). This is equivalent to 300 Manat, the official currency in Azerbaijan, and represented a 20% increase on the previous year.

According to the Constitution of the Republic of Azerbaijan, citizens have the right to receive a salary that is not lower than the minimum wage without any discrimination. The minimum wage is the lowest level of monthly pay for unskilled labour and services, taking into account economic and social conditions. It is determined at the national level and updated by Presidential Order. The minimum wage is calculated on a monthly basis and is paid in the official currency, the Manat.

The monthly wage of an employee who has worked according to the monthly norm of working time (a maximum of 8 hours per day or 40 hours per week) cannot be less than the minimum wage set by the state. Bonuses, allowances, and extra payments for overtime work are not included in the minimum wage.

Violation of the rules regarding minimum wage is an administrative offence, with employers facing fines ranging from 1,000 to 1,500 AZN. Employees have the right to complain to the Labor Inspection or to take legal action within a specified time frame if they feel their rights have been violated.

Minimum wage in Azerbaijan in 2013

The minimum wage in Azerbaijan is the lowest amount that workers can be paid for their work. It is a government-mandated, monthly rate that applies to all workers, with no differentiation based on region or occupation. The minimum wage is determined at the national level and is updated by Presidential Order.

In 2013, Azerbaijan's minimum wage was last changed on September 1, when it was set at 105 Azerbaijani manat per month for all workers. This amount was in place until at least 2016, according to a graph showing changes to the minimum wage rate over time.

While the minimum wage is meant to safeguard workers' rights and ensure fair compensation, it can also have unintended negative consequences. For example, it may push low-skilled workers out of the labour market if their marginal productivity is less than the minimum wage, or employers may hire workers illegally to avoid higher costs.

In Azerbaijan, the minimum wage is set by the central government without input from other institutions or interest groups, which can lead to a lack of public participation and potentially ineffective decisions. Additionally, the lack of regional or occupational differentiation in the minimum wage rate can create discrepancies between different regions and sectors of the economy.

To address these issues, it has been suggested that Azerbaijan establish a commission of economic experts to review the minimum wage annually or bi-annually and make recommendations to the government. This, along with differentiating the minimum wage rate based on region and skill level, could help to improve the effectiveness of the minimum wage policy in Azerbaijan.

Minimum wage in Azerbaijan in local currency

Azerbaijan has a government-mandated minimum wage, and no worker can be paid less than this mandatory minimum rate of pay. The current minimum wage in Azerbaijan is AZN345.00 per month, which has been in effect since January 1, 2023. This amount is in Azerbaijan New Manat, the country's official currency. The minimum wage in Azerbaijan was previously AZN300 per month in 2022, which was equivalent to €155.7 per month or 1,868 euros per year, considering 12 payments per year.

The minimum wage in Azerbaijan cannot be lower than the minimum set by the state, as outlined in Article 89 of the country's Labour Code. According to this code, the daily time norm cannot exceed 8 hours, and the weekly time norm is 40 hours. Employers in Azerbaijan who fail to pay the minimum wage may face punishment from the government.

The minimum wage rates in Azerbaijan vary across different sectors and skill levels. For example, the latest data on wages in the manufacturing sector shows an average wage of 685 AZN/Month, with a maximum level of 632 AZN/Month and a minimum of 48.8 AZN/Month. Similarly, the average wage for high-skilled employees is 666 AZN/Month, with a maximum of 666 AZN/Month and a minimum of 577 AZN/Month.

The minimum wage in Azerbaijan is subject to change and is reviewed and adjusted periodically. The last change to the minimum wage occurred on September 1, 2013, when it was set at 105 Azerbaijani manat per month.

How does Azerbaijan's minimum wage compare globally?

The minimum wage in Azerbaijan is AZN345.00 per month, or approximately $192. This amount came into effect on January 1, 2023, and represents an increase from the previous minimum wage of AZN300 per month. Azerbaijan's minimum wage is a government-mandated rate that all employers must abide by, with penalties for those who fail to pay it.

While it is difficult to make direct comparisons between minimum wages due to differences in local economies and living costs, it is worth noting that Azerbaijan's minimum wage is significantly lower than that of many other countries. For example, in 2024, Luxembourg had the highest minimum wage in the world at US$3,357 (€3,085) per month for skilled workers over the age of 18. Other countries with high minimum wages include the Netherlands (US$2,425 per month), Germany (US$2,269 per month), the United Kingdom (US$2,223 per month for those aged 23 and over), and Belgium (US$2,171 per month).

On the other hand, some countries have much lower minimum wages than Azerbaijan. For example, Mexico has the lowest minimum wage in the world at US$304 (MXN 5,229) per month. Other countries with low minimum wages include Kyrgyzstan (US$28 per month), Sri Lanka (US$39 per month), India (US$45 per month), Myanmar (US$48 per month), and Tajikistan (US$55 per month).

The concept of a minimum wage is a subject of debate, with supporters arguing that it increases living standards and reduces poverty and inequality, while opponents argue that it makes labor too expensive and negatively impacts businesses and the economy. Minimum wages vary from country to country, and even within countries like the United States, where individual states have the power to set their own minimum wages.

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