Social sector in Azerbaijan (January-March 2015)

Analysis Materials 13 May 2015 14:54 (UTC +04:00)

Population's income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 9.456 billion manat in January-March 2015, which is 5.3 percent more compared to January-March 2014. Thus, during this period, the nominal income of the population per capita increased by 4 percent and hit 996.8 manat.

Major indices, characterizing income of the population


Jan.-March 2015

Compared to Jan.-March 2014, %

nominal income of population, in mln manat



Per capita, manat



Income of population, in mln manat



Per capita, manat



Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 8.552 million manat, which is 5.3 percent more than in the same period of 2014. Real income per capita increased by 4 percent to 901.5 manat. Azerbaijani citizens spent 75.7 percent to purchase goods and services, 9.6 percent - to pay for taxes, duties, loans, social and insurance fees, 12.6 percent - to accumulate the capital during this period.

The population's expenditure amounted to 8.204 billion manat in January-March 2014 or 1.191 billion manat less than the income of the population but by 10.5 percent more than the expenses in January-March 2014 (according to the Azerbaijani State Statistics Committee, Trend's calculations).

The gap in the amount of the population's income and expenditure in favor of income testifies to the growth of material well-being of Azerbaijani citizens. The differentiation of the population's income and the Gini coefficient in the country should 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. According to the Azerbaijani State Statistics Committee, the average monthly salary in Azerbaijan in January-March 2015 comprised 444.5 manat compared to 426.4 manat as of the same period of 2014.

As of March 1, 2015, the average salary in the oil sector amounted to 1774.9 manat per month, while in non-oil sector - 411.1 manat, in the public sector - 346.9 manat, in the private sector - 581.0 manat.

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

As of January-February 2015, around 96,200 people were involved in the construction sector of Azerbaijan. The nominal salary in the construction sector amounted to 655.8 manat, which is 6.6 percent more than in the same period of last year.

The average salary in the public sector amounted to 468.4 manat (5.9 percent decrease during a year), while in the private sector - 723.7 manat (8.2 percent growth).

The salary in the field of building construction decreased by 6 percent - an average of 522.8 manat, while the salary in the specialized construction increased by 32.5 percent - up to 1,181 manat. The salary in the field of civil construction work increased by 2 percent - up to 478 manat in January-February 2015.

Azerbaijan pays special attention to the social sector. The well-thought-out economic reforms are complemented by a strong social policy. So, despite a decline in the country's state revenues from the sale of oil, the funds obtained in the previous years and the well-thought-out policy, the development of non-oil sector and drawing of foreign investments allow the country to fulfill all social obligations and to implement important projects even in terms of revenue decline.

In particular, the salaries of university professors have increased up to 1,450 manat per month since April 1. Some 1,200 people's salaries increased. These people are in the teaching staff of the university. The salary of a dean of a faculty will be 1,450 manat, the salary of a head of a department - 1,300 manat, professor's salary - 1,200 manat, associate professor's salary - 1,050 manat, a leading teacher's salary - 810 manat, the salary of an assistant and a teacher - 750 manat.

According to the Ministry of Education, the salary of 43.3 percent of teachers who have passed diagnostic assessment in Baku increased by 30-40 percent, the salary of 32.7 percent of teachers - by 20-30 percent, the salary of 7.1 percent of teachers - by 15-20 percent.

While considering the numerous public appeals in connection with the salary increments of the teachers, who have passed the diagnostic assessment, the percentages of allowances are as follows:

Salary increase after tax deduction in percent

Total percent of teachers



5% -10%


10% - 15%


15% - 20%


20% - 30%


30% - 40%


over 40%


Labor market

As of April 1, 2015, some 29,100 people were officially registered as unemployed in Azerbaijan, including 39.2 percent women, the Azerbaijani State Statistics Committee's report said.

In March 2015, the unemployment benefit in Azerbaijan reduced by 2.1 percent compared to February. Taking into account inflation per month (0.9 percent), the real amount of the benefit reduced by three percent. As of April 1, some 1,961 people received benefit compared to 1,802 people as of March 1, 1,560 people as of February 1 and 1,613 people as of January 1, 2015.

As of April 1, 2015, the unemployment benefit was 254.4 manat compared to 259.9 manat as of March 1, 266.9 manat as of February 1 and 289.2 manat as of January 1, 2015.

As of April 1, some 29,093 people were officially registered in the country as unemployed compared to 28,995 people as of March 1, 28,862 people as of February 1, 28,690 people as of January 1, 2015 and 36,791 people as of early 2014. In other words, the number of unemployed in March increased by 98 people, but by 403 people during 2015.

Distribution of unemployed individuals and those who receive unemployment benefit in towns and regions as of April 1, 2015 (people):


Individuals with unemployed status:

Individuals receiving unemployment benefits:




Absheron region
























Mountain Shirvan






According to the State Statistics Committee, as of early April 2015, the economically active population is 4.851 million people, of which 4.614 million people were engaged in labor activity. In this case, as of March 1, 2015, the number of hired persons is 1.514 million people, including 880,600 people worked in the public sector, and 633,500 people - in private sector.

The number of people working in the oil sector amounted to 36,800 people, in the non-oil sector - 1.477 million people. Around 1.469 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, 6.7 percent in manufacturing industry, 2.9 percent in agriculture, forestry and fishing, 2.4 percent - in the mining industry, 1.9 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling, 22.3 percent in education, 18.8 percent - trade, repair of vehicles, 8.6 percent - medical and social services, 6.6 percent in state governance and defense, social maintenance, 4.6 percent - transportation and warehousing, 3.8 percent - recreation, entertainment and arts, 3.8 percent - professional, scientific and technical activities, 1.7 percent - communication and information, 2.1 percent - financial and insurance activities, 0.9 percent - real estate transactions, 1.6 percent - administrative and additional services, 1.4 percent - tourist accommodation and catering and 1.1 percent - other areas.

Social maintenance

According to the State Social Protection Fund, as of April 1, 2015, the number of pensioners in Azerbaijan exceeded 1.2 million people.

Some 60.6 percent or 783,518 people receive old-age pension, 28.5 percent (369,170) - disability pension and 10.9 percent (140,515) - pension due to the death of the bread-winner in the family.

The government is taking measures to ensure the social protection of pensioners. As of January 1, 2006, the average pension was 29.8 manat, as of January 1, 2014 - 170.5 manat, as of January 2015 - this figure increased up to 175.1 manat. At present, the average amount of an old-age pension is 194.6 manat.

The basic pension had increased fourfold since a new pension system was used in the country.

The indexation of an insurance part of labor pensions was conducted nine times from 2007 up till now.

According to the Azerbaijani State Statistics Committee, as of February 1, 2015, the population of Azerbaijan reached 9,602 people. Some 13.4 percent of the population account for the pensioners.

Social maintenance

The targeted social assistance is being increased amid an increasing number of beneficiaries in Azerbaijan.

According to the Ministry of Labour and Social Welfare, the amount of the targeted social assistance increased by 13.5 percent in March and reached 143.13 manat on average per family. The number of beneficiaries decreased by 22.5 percent to 111,391 families (485,927 people). Some 32,437 families (141,348 people) were withdrawn from the targeted social assistance system during the year.