Social sector in Azerbaijan (January-February 2016)

Azerbaijani President Ilham Aliyev has signed a number of social decrees since early 2016 aimed to improve the material welfare of Azerbaijani citizens. Some 25 decrees and orders aimed at strengthening the social protection of the population once again testifies to the constant strengthening of the country's social policy. The growth of social payments in Azerbaijan will affect a total of 3.6 million people.

So, the basic part of labor pensions has increased by 10 percent up to 110 manat since February 1, 2016. This order will cover 1,271 million people. In particular, the growth of social payments will cover pensioners with first degree disability, and vision disability of the first degree, as their pensions hit 120 and 200 percent of the basic pension, respectively. In general, some 140.8 million manat will be additionally allocated from the budget by late 2016 to implement the decree. A decision of increasing the basic part of old-age pension was made to strengthen the social protection of pensioners.

The insurance part of all types of labour pensions has increased since January 1, 2016 in accordance with the consumer price index in 2015 to strengthen the social protection of pensioners.

The monthly amount of the presidential pension for the individuals who became disabled as a result of the events of January 20, 1990, has increased by 10 percent since February 1, 2016. Thus, the disabled of the first group will receive 165 manat, the second group - 143 manat, the third group - 110 manat. The decree covers 317 people. Among them, some 18 people are the disabled of the first group, 190 people - the second group, 109 - the third group. The disabled of the first group will receive 165 manat, the second group - 143 manat, the third group - 110 manat.

The monthly allowance allocated for food for internally displaced people has increased by 10 percent since February 1, 2016. The decree will cover 566,000 people. Some 11.3 million manat of budgetary funds will be allocated to execute this order.

The presidential pension assigned to the families of the martyrs has increased by 10 percent up to 220 manat since February 1, 2016 to strengthen the social protection of the families of the martyrs. The decree will cover 13,487 people. Some 3 million manat will be allocated for these purposes till late 2016.

The presidential pension for disabled veterans has increased by 10 percent since February 1, 2016. Thus, the disabled of the first group will receive 165 manat, the second group - 143 manat, the third group - 110 manat.

The burial allowance also increased by 10 percent in Azerbaijan. The social benefits also increased by 10 percent. Some 20 million manat was allocated from the president's reserve fund to the country's Ministry of Labor and Social Protection of Population to finance the targeted state social assistance. This once again testifies to the president's special attention to the social protection of the population.

The scholarships, set in the presidential order "On increasing scholarships for those having doctor's degree, students of higher, secondary special educational institutions and primary vocational education institutions" as of August 30, 2013 has increased by 10 percent since February 1, 2016.

The monthly benefit increased up to 40 manat for the individuals on partially paid social leave to care for a child under the age of eighteen months, while 25 manat - for a child from 1,5 up to 3 years old.

The salaries of those working in the culture, youth and sport institutions, social security institutions, as well as the health and educational institutions have increased by an average of 10 percent since February 1, 2016.

The salary of those working in the scientific and research institutions, departments and organizations financed from the state budget, as well as those working in the sphere of agriculture, forestry, irrigation, environmental protection, hydrometeorology and fish breeding has increased by an average of 10 percent.

The salaries of those having special titles and working in the interior departments, and civilians who are not state servants have increased by an average of 10 percent since February 1, 2016. The salaries of those working in agriculture, forestry, irrigation, environmental protection, hydrometeorology and fish breeding have also increased. The relevant decree has entered into force since February 1.

The monthly official salaries of the servicemen of the Main Department of Interior Troops of the Azerbaijani interior ministry and civilian employees, who are not servicemen, as well as the servicemen of the Special State Protection Service and civilian employees who are not civil servants have increased by an average of 10 percent since February 1.

On average, the monthly official salaries of servicemen of the Azerbaijani Defense Ministry and civilian employees who are not servicemen increased by 10 percent.

According to the presidential decree, the allowances increased for those working in the privatized enterprises and the organizations transferred to the subordination of state-owned enterprises, having poor health as a result of an industrial accident or occupational disease, or family members of these employees who have died for this reason, and others who depended on them.

According to the decree, these payments have increased by 10 percent since February 1, 2016. Thus, the above-mentioned people will get the following amount allocated from the budget:

- in case of up to 29 percent of disability - 33 manat;

- in case of 30-59 percent of disability - 44 manat;

- in case of 60-79 percent of disability - 55 manat;

- in case of 80 percent disability or more - 66 manat:

- in case of death - 77 manat.

The decree covers 869 people. Some 47,600 manat will be allocated from the state budget by late 2016 to finance this decree.

The presidential monthly pensions for veterans of the Great Patriotic War (1941-1945), those working in enterprises, institutions and organizations of Leningrad during the blockade of the city and awarded with the medal "For the Defense of Leningrad", "Resident of Leningrad blockade" medal (with the exception of disabled veterans), have increased to 110 manat since February 1, 2016. The allowances increased to strengthen the social protection of certain categories of people who participated in Great Patriotic War (1941-1945).

The decree will cover 447 people. Some 49,200 manat will be allocated from the state budget by late 2016 to finance this order.

The presidential monthly allowances for the first group of the disabled who receive social benefits, increased by 10 percent up to 66 manat. According to the decree, the allowances for the disabled of the first group receiving social benefits due to disease, disease acquired during the period of military service, in connection with industrial injuries and occupational diseases, participation in liquidation of the Chernobyl accident, have increased since February 1, 2016. The decree will cover 18,525 people. Some 1.2 million manat will be allocated from the budget for this purpose.

The minimum unemployment benefits and scholarships paid to citizens during the period of professional training, retraining and advanced training have been increased. This is envisaged by the amendments made by the Azerbaijani Cabinet of Ministers in the decision "On approval of unemployment benefits and the minimum amount of scholarship paid to the citizens during the period of professional training, retraining and professional development". According to the amendments, the amount of allowances has been set at 75 manat. Previously, their minimum amount was 55 manat. The new decision has entered into force since February 1.

Population's income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 6.459 billion manat in January-February 2016, which is 10.2 percent more compared to January-February 2015.

Thus, during this period, the nominal income of the population per capita increased by 9 percent and hit 673.3 manat.

Major indices, characterizing income of the population

Indices

Jan.-Feb. 2016

Compared to Jan.-Feb. 2015, %

nominal income of population, in mln manat

6459,3

110,2

Per capita, manat

673,3

109,0

Income of population, in mln manat

5769,5

109,4

Per capita, manat

601,4

108,1

Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 5.769 billion manat, which is 9.4 percent more than in January-February 2015. Real income per capita increased by 8.1 percent to 601.4 manat.

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 average monthly salary in Azerbaijan in January 2016 comprised 480.1 manat compared to 444.4 manat in January 2015.

Remuneration in the oil sector reached 2774,6 manat per month, the non-oil sector - 425,1 manat, the public sector - 355,4 manat, the private sector - 659,3 manat as of February 1, 2016.

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

Around 86,000 people were involved in the Azerbaijani construction sector during this period. The average monthly salary in the construction sector amounted to 833,6 manat, which is 27.1 percent more than in the same period of 2015.

The average monthly salary in state sector amounted to 521 manat (a 8.2 percent growth per year), private companies - 949,8 manat (with an increase of 31.8 percent).

The level of wages in the construction of buildings increased by 7.8 percent in January-February 2016 - an average of 567,1 manat, specialized construction - by 53.8 percent - up to 1 806,9 manat compared to the same period of 2015.

Labor market

As of March 1, 2016, some 30,600 people were officially registered as unemployed in Azerbaijan, including 38.1 percent women, the Azerbaijani State Statistics Committee's report said. The number of unemployed in the country increased by 5.5 percent compared to the same period of 2015.

The number of unemployed increased in the country. First, this is connected with the optimization of the state organizations. A number of state organizations with the same profile are being united. Second, a number of commercial banks have been closed since early 2016 because they did not fulfill the requirements set by the country's Central Bank.

The average monthly unemployment benefit in Azerbaijan is 263.1 manat.

Distribution of unemployed individuals and those who receive unemployment benefit in towns and regions as of March 1, 2016 (people):

Region:

Individuals with unemployed status

Individuals receiving unemployment benefits

Baku

12 977

1 434

Absheron region

1 556

279

Ganja-Gazakh

1 921

267

Sheki-Zaqatala

867

175

Lankaran

889

106

Guba-Khachmaz

1 114

193

Aran

7 551

627

Upper-Karabakh

1 594

104

Kalbajar-Lachin

1 359

65

Mountain Shirvan

793

64

Nakhchivan

-

-

As of March 1, 2016, the economically active population totaled 4.92 million people, of which 4.68 million people were engaged in labour activity.

Thus, as of February 1, 2016, the number of hired employees hit over 1.48 million people, including 874,700 people worked in the public sector, and 613,600 people - in private sector.

The number of people working in the oil sector amounted to 34,300 people, in the non-oil sector - 1.45 million people.

Around 20.9 percent fall to the hired employees involved in the production spheres: 6.1 percent in construction, 6.2 percent in manufacturing industry, 2.9 percent in agriculture, forestry and fishing, 2.3 percent - in the mining industry, 1.7 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling, 22.8 percent in education, 19.1 percent - trade, repair of vehicles, 9 percent - medical and social services, 7 percent in state governance and defense, social maintenance, 4.7 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, 1.9 percent - financial and insurance activities, 1 percent - real estate transactions, 1.7 percent - administrative and additional services, 1.5 percent - tourist accommodation and catering and 1.1 percent - other areas.

The labor rights of more than 28,900 foreigners were registered in Azerbaijan in January-February. The number of foreigners registered in the individual registration system in the Azerbaijani State Social Protection Fund increased by 3.71 percent for the year.

As of March 1, 2016, some 688 foreign employees were registered in the individual registration system. Thus, the total number of foreign citizens registered in the system increased to 28,903 people - 87.83 percent men, 12.17 percent - women.

According to the individual registration system, the labor rights of citizens from 118 world countries were registered, most of them Turkish citizens (14,053 people), Georgia (3,068) and Russia (1,749).

Social Security

Azerbaijan has been using a system of single electronic appeal for social assistance since February 15.

According to the Azerbaijani Ministry of Labor and Social Protection, the average amount of targeted social assistance in Azerbaijan is 151.31 manat. In February, some 119,275 families (514,149 people) were provided with the targeted social assistance.

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