Ziyad Samedzade, the Chairman of Permanent Parliamentary Commission on Economic Policy, stated that continuous increases in salaries may have a negative impact. At the same time the minimum wage set by the Azerbaijani President, Ilham Aliyev, in the amount of AZN 40 is more realistic and mirrors the development of Azerbaijan.
Samedzade stated that the minimum wage, applicable to all citizens, regardless of their job description, would not receive a salary lower than AZM 40. Any citizens that are paid a salary lower than the minimum wage is having their rights violated.
Several years ago the minimum salary was old AZM 5,000 (AZN 1), but this has now been increased to AZN 40. In accordance with forecasts, by the end of the year the minimum wage will be increased to AZN 50. The development in Azerbaijan confirms that the minimum wage will be raised in line with the cost of living. During the next 2-3 years the minimum wage will comprise 87-88%. On the whole, labor relationships are regulated and the rise in minimum wages offers a sound basis for the increase of the average monthly salary, MP Samedzade said.
He added that it is not a problem to increase the minimum salary in line with the cost of living, but the matter needs to be investigated more fully.
As for the influx of excess money with regards to the expansion of the global economy, it may promote inflation. 37-38% of the public budget is comprised of social expenses. Over the past 10 years the public budget has risen 10 times. This process is developing as predicted and therefore continuous increases in salaries are likely to have a negative outcome, he stressed.