Review of social sector in Azerbaijan (January-October 2011)

Analysis Materials 13 December 2011 12:01 (UTC +04:00)

Income of population

According to the data provided by the Azerbaijani State Statistics Committee, in January-October 2011, the nominal income of the population totaled 24.538.6 billion manat which is 19.0 percent more as compared to January-October 2010.

Thus, during this period, the nominal income of the population per capita increased by 17.4 percent to 2.713.6 manat. Thanks to the socially oriented programs and government decrees, the rate of income growth surpassed last year's growth rate for this indicator. So, in January-October 2010, the nominal income rose by 11.7 percent, while per capita income by 10.4 percent.

Major indices, characterizing money incomes of the population

Indicators Actual figures for Jan.-Oct. 2011 As compared to Jan.-Oct. 2010 (%)
Nominal income of population, in mln manat 24.538.6 119.0
Per capita, manat 2.713.6 117.4
Available income, in mln manat 22.588.2 120.2
Per capita, manat 2.497.9 118.6

Source: State Statistics Committee

In January-October 2011, Azerbaijani citizens distributed their income in following way: 65.8 percent on purchase of goods and services, 7.9 percent - payment of taxes, social and insurance fees, 24.4 percent - capital accumulation.

The population's income after the payment of taxes and membership fees made up 22.588.2 bln manat or 20.5 percent more than in Jan.-Oct. last year. The income per capita made up 2.497.9 with rise of 18.6 percent.

Thus, during the reported period the money expenditure comprised 18.084.9bln manat or 6.453.7 bln manat less than the income of population, but 12.8% more than the expenses in Jan.-Oct. 2010. (Source: State Statistics Committee, calculations by Trend ).

The gap in income and expenditures of population in favor of income, stipulates the growth of material well-being of Azerbaijani citizens. The differentiation in income of the population and the availability of the Gini coefficient must be taken into account.


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. Thus, the amount of average monthly salary in Azerbaijan in January-October 2011 comprised 355.1 manat or 9.o percent more than the same period of 2010.

In October 2011 the average wage 30.86 percent exceeded the average cash income per capita per month (271.36 manat).

Wages in the extractive industry 3.302 times exceeds the average salary in the country and 3.978 times - salaries in the state sector of economy.

Over the first nine months of 2011, the average wage in the extractive industry was 1.172.5 manat (13 percent annual growth), being higher than the average wage in the oil sector (1.165.5 manat). The average salary for the industry as a whole accounted for only 517.8 manat (+16.6 percent), manufacturing - 352.8 manat (+20.9 percent). At the same time, salaries in the state industry was 444.8 manat, in the private industry - 623.3 manat.

The wages in non-oil sector as of Nov. 1 was 332.5 manat, in the public sector - 294.7 manat, in the non-public sector - 456.9 manat.

The average salary of part-time employees was 186.1 manat (the previous month was 185.6 manats), and employees attracted by contract - 334.2 manat (334.4 manat).

Azerbaijani President Ilham Aliyev signed a decree in October to raise the salaries of employees of the Ministry of Emergency Situations. According to the decree, the monthly official (tariff) salaries of servicemen and employees with special ranks of the Ministry of Emergency Situations increased on average by 30 percent. Azerbaijani President Ilham Aliyev signed a decree on raising the salaries of employees with special ranks of the Interior Ministry. According to the decree, the monthly official (tariff) wages of employees with special ranks of the Interior Ministry increased on average by 30 percent. The Cabinet of Ministers is charged to resolve the issues arising from these regulations.

Labor market

As of Nov. 1, there were 39,100 unemployed people, with 43 percent women, the State Statistics Committee reported. Three unemployed claim for one vacancy in the country.

During the reported period, the economically active people in Azerbaijan made up 4,599,200 including 4,345,600 working people. The number of hired people hit 1.366.900 people in Jan.-Sept. About 853,700 people work in the public sector and 506,100 - in private.

About 36,400 people work in the oil sector, 1.322.2 million people - in non-oil sector, 1.318.9 million hired people - in industries not related to agriculture.

Of the hired employees involved in the production spheres: 20.8 percent in industry, 2.6 percent in extracting and 5.8 in processing, 5.7 percent in construction, 2.9 percent in agriculture, forestry and fishing, 25.3 percent in education, 19.8 percent in trade and repair, 10.0 percent in health and social services, 4.7 percent in transport, 1.8 percent - communications, 0.7 percent - in real estate operations, 1.6 percent in financial and insurance activities and 1.0 percent in other spheres.

The number of labor migrants in Azerbaijan will increase mainly in construction and mining industries this and next years, the draft concept of socio-economic development for 2012 and the next three years, submitted to the Azerbaijani Parliament.

The continued development of the country's economy, as well as the implementation of the large-scale projects give grounds to predict inflows of foreign workers to Azerbaijan in the coming years. It is expected to preserve the current trends of labor migration in Azerbaijan this and in 2012. The number of foreign workers is expected to increase, mainly, in construction and mining industries.

The number of workers who arrived on the basis of an individual permit for the activity will increase in the future due to the tightening of sanctions associated with illegal labor activities, and supervision in this area. The share of foreign workers in the domestic labor market is not expected to sharply increase in the future.

According to the project, the main directions and tasks in the field of labor migration are to protect the domestic labor market from unskilled foreign labor, the effective use of local labor force, to prevent illegal migration, as well as to improve the legislation using the international experience, and other tasks.

As of October 1, 2011, the number of foreigners registered in the individual registration system of the Azerbaijani State Social Protection Fund, increased to 11,733 people.

Foreigners registered in the individual registration system in Azerbaijan are citizens of 93 countries. Most of them are Turkish citizens - 6,783 people, 1,452 Georgian citizens, 616 Russian citizens, 396 Iranian citizens, 275 Indian citizens, 244 Chinese citizens, 146 people from Great Britain and Northern Ireland, 140 Uzbek people, 128 people from Bosnia and Herzegovina, 102 people from Pakistan, 98 people from Philippine, 94 German citizens, 92 Ukrainian people, 80 people from Malaysia, 81 Turkmen citizens, 68 Kazakh citizens, 68 Italian citizens, 62 U.S. citizens and other countries.

As of Nov. 1, 2011 the largest number of unemployed (12,706 people, only 644 people got benefits) was registered in Baku and eighteen districts of Aran economic region(10,656 and 393 people accordingly).

Distribution of unemployed individual and those who receive unemployment benefit in regions as of November 1, 2011

Individuals with unemployed status

Individuals who receive unemployment benefits




Absheron region






























Source: State Statistics Committee

Social security

The Azerbaijani Ministry of Labour and Social Protection will improve the work of regional offices with the introduction of a "single window" system. Maintenance, as well as improving conditions in local administrative buildings create conditions to improve the quality of services rendered to the population, as well as to apply the single window principle. The work carried out in this area, create normal conditions for staff of local agencies, more effectively work using the principle of "single window" and improve services to the population.

Moreover, the Azerbaijani Ministry of Labour and Social Protection has taken measures to execute the Azerbaijani President's decree. The ministry takes steps to introduce SMS-notification of recipients of social benefits. It is planned to send SMS-notification to each recipient of benefits, at the appointed time. The process is planned to start from next year.

The need criterion in Azerbaijan was increased by 15.4 percent - up to 75 manat in 2011.

The number of people getting social aid will increase when the level of need criterion [75 manat today] increases.

The wages, pensions, social benefits also increase during the year. The income of the population affects the rate by the number of poor. Therefore, the number of people getting social aid is not expected to increase.

Azerbaijan has been applying the targeted social assistance system since 2006. The amount of social assistance is determined proceeding from the difference between "need criterion" and the amount of income per family member.

Azerbaijan applies a system of targeted social assistance since 2006. The size of social assistance is determined based on the difference between "need criterion" and the amount of income per family member.

As of October 1, about 102,209 people got social benefits on disablement in Azerbaijan. About 304,502 people get social benefits. About 16,273 people get benefits by age, 36,698 people - because of the death of a breadwinner, 60,475 - for children under 18 with disabilities.

As of October 1, social benefits, were granted to 520 people injured at work or due to occupational disease, and 20,923 families with many children.

About 95,348 people were registered for getting one-time benefit. There are 81,695 benefits issued to families after a child is born.

Provision of pensions

According to the State Social Protection Fund's statistics, as of October 1, about 1,279,422 people get pensions in Azerbaijan, including 496,248 men, and 783,174 women.

About 330,828 people get pensions on disability. About 815,239 people get retirement pension. The number of people receiving pensions because of the death of a breadwinner is 133,355 people.

The pensions were set for 10,038 people in the third quarter. The average monthly pensions assigned in this period were 163.9 manat.

The pension is a monthly payment to compensate for wages or other income earned by citizens. Three kinds of pensions are granted - by age, disablement and death of a breadwinner.

The Azerbaijani State Social Protection Fund continues operating to provide pensioners living in mountainous rural areas with plastic cards. The steps were taken to provide pensioners with plastic cards with a condition of getting pension in any ATM.

According to the statistics, as of October 1, the number of people receiving pensions by plastic cards increased by 2,873 people over the same period of last year. About 98.9 percent of pensioners living in rural areas and 100 percent of pensioners living in urban areas get pensions via plastic cards. In general, providing pensioners with plastic cards hits 99.4 percent. According to this index, Azerbaijan is considered one of the countries with the most transparent system of pensions.