Social sector in Azerbaijan (2015)

Azerbaijani President Ilham Aliyev signed two socially oriented orders in December to improve the social state of people who became disabled while protecting the territorial integrity, constitutional order and the independence of the country and martyrs' families. Other order concerned the allocation of one-time financial assistance in the amount of 50 manat to the families receiving the state targeted social assistance.

Population's income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 41.739 billion manat in 2015, which is 5.7 percent more compared to 2014.

Thus, during this period, the nominal income of the population per capita increased by 4.5 percent and hit 4380,1 manat.

Major indices, characterizing income of the population

Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 37.948 billion manat, which is 5.6 percent more than in 2014. Real income per capita increased by 4.3 percent to 3982,3 manat.

Azerbaijani citizens spent 72.1 percent of income on goods and services, 9.1 percent - to pay for taxes, duties, social and insurance fees, 2.9 percent - to pay off the loans and compulsory membership fees, 15.9 percent - to accumulate the capital.

The population's expenditure amounted to 35.102 billion manat in 2015 or 6.636 billion manat less than the income of the population but by 11.5 percent more than expenditure of the population for 2014 (according to the Azerbaijani State Statistics Committee, Trend's calculations).

The gap in income and expenditure of the population in favor of income testifies to the growth of material well-being of Azerbaijani citizens. The differentiation in the population's income and the availability of the Gini coefficient in the country should be taken into account.

Salary

The salary is one of the key social and economic indicators, which sufficiently enough characterizes the level of the prosperity of the working part of the population. According to the Azerbaijani State Statistics Committee, the average monthly salary in Azerbaijan in January-November 2015 comprised 462 manat compared to 442.1 manat in January-November 2014.

Remuneration in the oil sector reached 2105,5 manat per month, the non-oil sector - 422,1 manat, the public sector - 357,3 manat, the private sector - 608,2 manat as of December 1, 2015.

The highest salary was observed in the mining industry, financial, information and communication, scientific and technical activity, as well as the construction sectors.

Around 98,200 people were involved in the Azerbaijani construction sector in January-November 2015. The average monthly salary in the construction sector amounted to 674,5 manat, which is 7.6 percent more than in the same period of 2014.

The average monthly salary in state sector amounted to 512,8 manat (a 1.9 percent decrease per year), private companies - 732,4 manat (with an increase of 9.1 percent).

The level of wages in the construction of buildings decreased by 2.8 percent in January-November 2015 - an average of 539,6 manat, specialized construction (increased by 29.8 percent) - up to 1202,5 manat compared to the same period of 2014.

Labor market

As of January 1, 2016, some 28,900 people were officially registered as unemployed in Azerbaijan, including 38.6 percent women, the Azerbaijani State Statistics Committee's report as of 2015 said.

The number of unemployed in the country increased by 0.7 percent compared to 2014.

Over 80,000 permanent jobs were created in the country in 2015. Some 40,000 jobs were closed.

Distribution of unemployed individuals and those who receive unemployment benefit in towns and regions as of January 1, 2016 (people):

The average monthly amount of the unemployment benefit in Azerbaijan is 262.3 manat. As of January 1, 2016, some 1,543 people received this benefit compared to 1,705 people as of December 1 and 1,613 people as of January 1, 2015.

As of January 1, 2015, the economically active population totaled 4.92 million people, of which 4.67 million people were engaged in labour activity.

Thus, as of December 1, 2015, the number of hired employees hit over 1.5 million people, including 879,400 people worked in the public sector, and 624,600 people - in private sector.

The number of people working in the oil sector amounted to 34,500 people, in the non-oil sector - 1.47 million people.

Around 21.6 percent fall to the hired employees involved in the production spheres: 6.4 percent in construction and manufacturing industry, 3 percent in agriculture, forestry and fishing, 2.3 percent - in the mining industry, 1.8 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling, 22.4 percent in education, 19 percent - trade, repair of vehicles, 8.8 percent - medical and social services, 6.7 percent in state governance and defense, social maintenance, 4.9 percent - transportation and warehousing, 3.8 percent - recreation, entertainment and arts, 3.9 percent - professional, scientific and technical activities, 1.7 percent - communication and information, 2 percent - financial and insurance activities, 1 percent - real estate transactions, 1.6 percent - administrative and additional services, 1.5 percent - tourist accommodation and catering and 1.1 percent - other areas.

The Azerbaijani government continues taking measures to increase employment. The State Employment Service under the Ministry of Labor and Social Protection of the Population provided 27,146 unemployed job seekers with jobs in January-November.

Social Security

According to the Azerbaijani State Social Protection Fund, as of January 1, 2016, some 3,180,154 people got individual social insurance accounts in Azerbaijan, which is 6.84 percent more than as of early 2015.

The number of people who opened the individual accounts, increased by 203, 836 in 2015.

Some 59.2 percent of the total number of insured, which opened individual accounts of social insurance accounted for men (1,882,800 people), 40.8 percent - women (1,297,354 people).

Some 25.08 percent of the total number of people with individual accounts accounted for 30-40-year-old- citizens (797,700 people), 21.15 percent - under 30 years old (672, 670 people), 21.14 percent - 50-60 years old (672,132 people), 20.43 percent 40-50 years old (649,690 people), 12.2 percent - older 60 years old (387,962 people) among all social insurance payers.

According to the law "On labor pensions", Azerbaijan has begun using a personalized (individual) social insurance since January 2006. An individual account is opened on this basis for each payer of contributions for compulsory social insurance. The payer's contributions for compulsory social insurance are accumulated there.

According to the state program of development of the pension insurance system in Azerbaijan in 2009-2015, using of individual registration is being expanded in the state system of social insurance.

Provision of pensions

As of January 1, 2016, the number of people receiving labor pensions in Azerbaijan and registered in the State Social Protection Fund amounted to 1,295,900 people.

In 2015, the number of people from this category of the Azerbaijani population increased by 5,000 people or 0.4 percent.

As of January 1, 2016, the average monthly labor pension in Azerbaijan amounted to 176.03 manat, the labor pension on age - 196.08 manat.