Social sector in Azerbaijan (January-June 2013)

Analysis Materials 7 August 2013 18:30 (UTC +04:00)

Population's income

According to the Azerbaijani State Statistics Committee, in January-June 2013, the nominal income of the population totaled 15.830.7 billion manat, which is 7.1 percent more compared to January-June 2012.

Thus, during this period, the nominal income of the population per capita increased by 5.7 percent and hit 1.708.8 manat.

The depositors of the Bank of Azerbaijan Republic of the Savings Bank of the former Soviet Union got the payments during the reporting period. This fact contributed to the increase in the population's income.

Around 93 percent or 555 million manat of this amount has been paid for seven months in 2012, while 42 million manat - in the first half of 2013.

Major indices, characterizing income of the population

Indices Jan.-June 2013 Compared to Jan.-June 2012, percent
nominal income of population, in mln manat 15830,7 107,1
Per capita, manat 1708,8 105,7
Income of population, in mln manat 14353,5 107,1
Per capita, manat 1549,4 105,7

Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 14.353.5 billion manat, which is 7.1 percent more than in January-June 2012. Real income per capita increased by 5.7 percent to 1.549.4 manat.


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 data provided by the Azerbaijani State Statistics Committee, the hired employees' average monthly salary in Azerbaijan in January-May 2013 comprised 408.8 manat or 6.8 percent more than in January-May 2012.

As of May 2013, the average salary of temporary staff was 315.1 manat, while employees involved upon civil contracts - 317.0 manat.

Remuneration in the oil sector reached 1.555 manat per month, the non-oil sector - 378.5 manat, the public sector - 328.5 manat, the private sector - 534 manat.

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

Around 95,700 people were involved in the Azerbaijani construction sector in January-May 2013 or by 14.5 percent more compared to the same period of 2012. The nominal wages in the construction sector amounted to 597.2 manat, which is 6.3 percent more than in the same period of last year.

The average salary in state-owned companies amounted to 486.4 manat (an increase of 10.1 percent per year), private companies - 651.4 manat (with an increase of 1 percent).

The level of wages in the construction of buildings increased by 1.5 percent per year - an average of 561.5 manat, specialized construction (an increase of 7.1 percent) - up to 746.4 manat, civil construction operations increased by 29.1 percent - up to 513.5 manat.

Labor market

As of early July 2013, the economically active population totaled 4.720.9 million people, of which 4.480.6 million people were engaged in labour activity. Thus, as of June 1, the number of hired employees hit 1,480 people, including 896,200 people worked in the public sector, and 583,800 people - in private sector.

The number of people working in the oil sector amounted to 37,300 people, in the non-oil sector - 1.442.7 million people. Around 1.438.2 million people among hired employees work in non-agricultural sphere.

As of June 1, around 21.8 percent fall to the hired employees involved in the production spheres: 6.8 percent in construction, 6.2 percent in manufacturing industry, 2.8 percent in agriculture, forestry and fishing, 2.5 percent - in the mining industry, 2.1 percent - in the production and distribution of electricity, gas and steam, 1.4 percent - in water supply, waste recycling, 23 percent in education, 18.9 percent - trade, repair of vehicles, 8.8 percent - medical and social services, 6.6 percent in state governance and defense, social maintenance, 4.9 percent - transportation and warehousing, 3.9 percent - recreation, entertainment and arts, 3.7 percent - professional, scientific and technical activities, 1.8 percent - communication and information, 1.8 percent - financial and insurance activities, 0.8 percent - real estate transactions, 1.6 percent - administrative and additional services, 1.4 percent - tourist accommodation and food and 1 percent - other areas.

The Azerbaijani Ministry of Labor and Social Protection of Population ensured the legalization of labor relations for more than 5,000 employees in the country in the first half of the year. Around 355,421 manat were paid to employees during the reporting period. Their issuance was delayed by employers.

Some 324,732 manat of this amount fall to the salaries that were not paid on time.

As of July 1, 2013, around 37,200 people were officially registered as unemployed in Azerbaijan, including 41.7 percent of women. The number of unemployed in the country increased by 1.2 percent since early 2013 (36,791 people as of early 2013).

As of July 1, 2013, the largest number of unemployed was registered in Baku's 12 administrative districts (13,404 people, of which 714 people received unemployment benefits) and eighteen regions of Aran economic region (10,085 and 451 people respectively).

Distribution of unemployed individuals and those who receive unemployment benefit in towns and regions as of July 1, 2013 (people)

Individuals with unemployed status

Individuals receiving unemployment benefits




Absheron region






























Source: State Statistics Committee

The unemployment benefit reduced by 1.6 percent in Azerbaijan in June 2013 compared to May. Taking into account the decline in consumer prices per month (1.1 percent), the real benefit amount reduced by 0.5 percent. The average unemployment benefit totaled 248.5 manat in Azerbaijan in June, which is 6.7 percent more than at the beginning of the year.

Pension provision

According to the Azerbaijani State Social Protection Fund, the average retirement pension hit 153.6 manat in Azerbaijan as of July 1, while the old-age pension - 170.1 manat. The number of pensioners in the first half of 2013 reduced by 2,000 people (0.2 percent) and hit 1.27 million people.

Around 1.219 million manat were transferred for financing the pensions and benefits in January-June, which is 41.3 million manat or 3.5 percent more than the payments for the same period of last year.

The expenses for pension provision increased by 3.5 percent, or 39.9 million manat, amounting to 1.190.6 billion manat compared to the same period of last year. The allowances worth 28.4 million manat were issued to the population in January-June.

In general, the Azerbaijani State Social Protection Fund's expenses for the reporting period amounted to 1.241.9 billion manat.

According to the preliminary data, the revenues increased by 2.7 percent, or 34.2 million manat, reaching 1.306.6 billion manat in January-June compared to the same period of last year.

The income on the contributions of compulsory state social insurance increased by 11.9 percent, or 77 million manat amounting to 723.8 million manat during the first six months compared to the same period of 2012.

Around 462.8 million manat or 63.9 percent of revenues for compulsory social insurance fall to the share of non-budgetary sector.

The contributions paid by the sector increased by 19.8 percent, or 76.7 million manat compared to the same period of last year. As a result, the forecast was fulfilled by 121.4 percent.

The involvement of physical entities, engaged in entrepreneurship, and land owners to social insurance, was enhanced during this period.

As a result, physical entities' revenues increased by 47.9 percent and land owners' revenues - by 55.1 percent.

The revenues from the budgetary organizations hit 261 million manat in January-June. Their deductions for obligatory state social insurance increased by 9.8 percent or 42.8 million manat compared to the same period of last year.

The level of these revenues allowed funding the payment of pensions and benefits on time.

In general, the forecast for revenues on obligatory state social insurance was executed by 101.9 percent in January-June 2012.

The number of citizens with compulsory personal social insurance accounts increased by 12.2 percent in the first half of 2013 compared to the same period of 2012.

According to the report, personal accounts for 315,510 customers were opened in January-June 2013. As of July 2013, the total number of insurers possessing personal accounts for charges on compulsory social insurance in Azerbaijan is 2.58 million people.

Some 58.6 percent of them are men and 41.4 percent are women. Most of insured persons (25.3 percent) fall to 30-40 year old citizens. Persons younger 30 constitute 23.3 percent, 40-50 year old people constitute 22.8 percent, 50-60 year old are 20.5 percent and others, older 60 year old constitute 9.8 percent of insured persons.

Labor pensions in Azerbaijan consist of two categories: basic and insurance. The basic part is estimated at 85 manat.