BAKU, Azerbaijan, July 30
By Eldar Janashvili – Trend:
The growth rate of the wage fund in the private non-oil sector of Azerbaijan amounted to 11 percent in the first half of 2020, Trend reports citing the Ministry of Economy.
The ministry noted that the nominal growth rate of the population's monetary income over the reporting period made up 0.6 percent.
“Thus, the process of exceeding the growth rate of the wage fund relative to the growth rate of cash income continued this year. In 2019, the growth rate of the wage fund in the private non-oil sector (29.1 percent) significantly exceeded the nominal growth rate of the population's monetary income (7.4 percent),” said the report.
The high dynamics of transparency processes in the labor market provides the high dynamics of growth in receipts from compulsory state social insurance and insurance premiums from unemployment due to the creation of conditions for the growth of the wage fund, the ministry said.
Also, the reforms carried out in the field of collection of social insurance contributions led to the reduction of the budgetary dependence of the State Social Protection Fund, added the report.
“If in 2017 the share in the fund of transfers’ income from the state budget to the fund's budget was 38.2 percent, then in 2019, after the tax authorities began to exercise control over the accrual and payment of social insurance contributions, this indicator decreased to 28.7 percent,” the ministry stressed.
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