Social sector in Azerbaijan (2013 year)

The salaries of judges of the Constitutional Court and the Ombudsman's Office staff increased in Azerbaijan in December 2013. In this regard, the Azerbaijani Parliament has amended the laws on "Commissioner for Human Rights (Ombudsman) of Azerbaijan" and on "Constitutional Court".

The monthly salaries of the chairman of Azerbaijani Parliament and MPs also increased. The article 21 of the law on "Status of Azerbaijani MPs" was also amended.

Population's income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 37.555.5 billion manat in 2013, which is 8 percent more compared to 2012.

Thus, during this period, the nominal income of the population per capita increased by 6.6 percent and hit 4.039.6 manat.

Major indices, characterizing income of the population

Source: State Statistics Committee

Azerbaijani citizens spent 64.3 percent of income on goods and services, 8.3 percent - to pay for taxes, duties, social and insurance fees and 1.8 percent to pay off the loans and interest, 25.6 percent - to accumulate the capital in 2013.

The population's income after paying all required fees and membership fees made up 34.451.4 billion manat, which is 8.0 percent more than in 2012. Real income per capita increased by 6.6 percent to 3.705.7 manat.

The population's expenditure amounted to 27.941.2 billion manat in 2013 or 9.614.3 billion manat less than the income of the population, but by 8.2 percent more than the expenditure in 2012 (according to the State Statistics Committee, Trend calculations).

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 hired employees' average monthly salary in Azerbaijan in 2013 comprised 419 manat or 6.6 percent more than in January-November 2012.

As of December 1, 2013, the average salary of temporary staff was 293.5 manat compared to 296.1 manat a month earlier, while employees involved upon civil contracts - 338.9 manat compared to 342.8 manat.

Remuneration in the oil sector reached 1.548.8 manat per month, the non-oil sector - 386.8 manat, the public sector - 336.6 manat, the private sector - 539.1 manat.

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

Labor market

As of January 1, 2014, the economically active population totaled 4.757.8 million people, of which 4.521.2 million people were engaged in labour activity.

Thus, as of December 1, 2013, the number of hired employees hit 1.505.9 million people, including 901,800 people worked in the public sector, and 604,100 people - in private sector.

The number of people working in the oil sector amounted to 37,600 people, in the non-oil sector - 1.468.3 million people. Around 1.463.1 million people among hired employees work in non-agricultural sphere.

Around 22.7 percent fall to the hired employees involved in the production spheres: 7.1 percent in construction, 6.2 percent in manufacturing industry, 2.9 percent in agriculture, forestry and fishing, 2.5 percent - in the mining industry, 2 percent - in the production and distribution of electricity, gas and steam, 1.6 percent - in water supply, waste recycling, 22.7 percent in education, 18.8 percent - trade, repair of vehicles, 8.7 percent - medical and social services, 6.6 percent in state governance and defense, social maintenance, 4.9 percent - transportation and warehousing, 3.8 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, 0.9 percent - real estate transactions, 1.6 percent - administrative and additional services, 1.4 percent - tourist accommodation and food and 1.1 percent - other areas.

As of January 1, 2014, around 36,200 people were officially registered as unemployed in Azerbaijan, including 41.5 percent of women. Thus, the number of unemployed has been slightly decreased since early 2013 (some 36,791 people as of the beginning of the year).

Distribution of unemployed individuals and those who receive unemployment benefit in towns and regions as of January 1, 2014 (people)

As of January 1, 2014, the largest number of unemployed (13,303 people, of whom only 228 people received benefits) was registered in Baku and regions of the Aran economic area (10,023 and 107 respectively).

According to the report, the average amount of an unemployment benefit in Azerbaijan is 268.5 manat. The benefit rate increased 20 percent during 2013.

The Azerbaijani government continues taking measures to increase the employment level. Some 46,667 people appealed to the State Employment Service under the Ministry of Labour and Social Welfare in 2013. This resulted in 29,390 being provided with jobs.

During the reporting period, 4329 unemployed and job seekers took professional training courses in the areas corresponding to the relevant requirements of the labour market and 1480 citizens were involved in paid public operations. The labour exchanges provided 4101 with temporary jobs in Baku, Sumgait, Ganja and Mingachevir.

Some 2969 were given unemployed status in 2013. Unemployment benefit was assigned to 3200 citizens.

Social security

As of January 1, 2014, the state targeted social aid was assigned to 140,711 families (615,516 people) in Azerbaijan. Some 39,852 families have three or more children.

The number of children aged up to one year in the families receiving the targeted social aid is 8433, at the age of 18 it is 296,185, the number of children under 18 with disabilities is 296,185 and family members over 18 - 20,253.

The average amount of targeted social aid per single family is 126.88 manat and 29.01 manat per family member.

The criteria of need used to calculate the targeted social aid increased 3.3 times and reached 100 manat in 2014, compared to 2006.

Provision of pension

Azerbaijan will maintain its leading position in the CIS on the dynamics of pension growth in 2014. The president's two decrees on indexation were executed and pensions were increased in 2013. Afterwards, the basic pension increased to 100 manat, their average amount - up to 170 manat, and the retirement age pension replacement rate was 45 percent. As a result, the average pension amount exceeds the retiree's subsistence level by 1.7 times in the country, whereas it was twofold less than that figure in 2003.

The measures on strengthening the social protection of pensioners will be continued in 2014, the head of the state social protection fund. The fund's budget for 2014 shows that most of the potential, formed in terms of macroeconomic stability and dynamic development of the economy, is spent on social protection of pensioners.

Some 1.52 billion manat will be spent to finance the basic pension in 2014, which is by 160 million manat more than in 2013. Most of these funds (1.47 billion manat) will be spent directly to finance the basic pension, while 44.4 million manat - allowances.

The insurance part of labor pensions will increase by 11.2 percent in 2014 or 128.4 million manat. Some 27.7 million manat of this amount will be spent to the indexation of pensions in line with inflation as of January 1, 2014, while 100.7 million manat - for financing the special allowances for servicemen, civil servants and other categories of pensioners, as well as for financing the difference between pensions.

Afterwards, the average pension amount in the country will increase by 10.8 percent - to 183 manat, old-age pensions will increase by 11.9 percent - to 186 manat, disability pension - by 8.6 percent - to 132 manat, pension on the demise of head of the family - by 10.4 percent - to 131 manat. As a result, Azerbaijan will retain leadership among the CIS countries on this index in 2014.