Social sector in Azerbaijan (January-March 2016)

Azerbaijani President Ilham Aliyev has signed a number of social orders since early 2016 aimed to improve the welfare of the Azerbaijani citizens.

According to another presidential decree, some 50 percent (previously 25 percent) of funds transferred to the off-budget fund of development of the Azerbaijani customs system must be used for the payment of rise in the monthly salaries of civilian employees and employees of the Azerbaijani State Customs Committee having the special ranks since March 1, 2016.

According to another decree, the monthly official salaries of employees having leading and other positions in the following organizations (except for employees getting salaries on the basis of the Unified Wage Scale) increased by an average of 10 percent since March 1, 2016:

National Cuisine Centre of the Azerbaijani Ministry of Culture and Tourism;

Main Accounting Office under Baku's executive bodies;

National Archive Department of the Republic of Azerbaijan and its branches, regional (city) state archives;

Agricultural Research Centre under the Azerbaijani Ministry of Agriculture;

Financial Research and Training Center under the Azerbaijani Ministry of Finance;

Scientific-Methodical Center of Cultural Studies under the Ministry of Culture and Tourism;

Research and Training Center on Labour and Social Issues under the Ministry of Labour and Social Welfare;

National Aerospace Agency under the Azerbaijani Ministry of Defense Industry;

Center for Intellectual Property Rights under the Azerbaijani Copyright Agency;

State Film Fund under the Azerbaijani Ministry of Culture and Tourism and its Nakhchivan branch;

Forensic medical examination and pathologic anatomy center under the Azerbaijani Ministry of Health;

Forensic psychiatric examination center under the Azerbaijani Ministry of Health;

Children's houses and infant schools subordinated to the executive power of Baku city;

"House of graduates" social institution under the State Social Security Service of the Azerbaijani Ministry of Labor and Social Protection of Population envisaged for those deprived of parental care.

Population's income

According to the Azerbaijani State Statistics Committee, the nominal income of the population totaled 10.303 billion manat in January-March 2016, which is 9 percent more compared to January-March 2015.

Thus, during this period, the nominal income of the population per capita increased by 7.7 percent and hit 1073,5 manat.

Major indices, characterizing income of the population

Source: State Statistics Committee

The population's income after paying all required fees and membership fees made up 9.304 billion manat, which is 8.6 percent more than in January-March 2015. Real income per capita increased by 7.3 percent to 969.4 manat.

Azerbaijani citizens spent 81 percent of income on goods and services, 9.7 percent - to pay for taxes, duties, social and insurance fees, 2.3 percent - to pay off the loans and compulsory membership fees, 7 percent - to accumulate the capital.

The population's expenditure amounted to 9.582 billion manat in January-March 2015 or 721.4 million manat less than the income of the population but by 16.8 percent more than expenditure of the population for January-March 2015 (according to the Azerbaijani State Statistics Committee, Trend's calculations).

The gap in income and expenditure of the population in favor of income testifies to the growth of material well-being of Azerbaijani citizens. The differentiation in the population's income and the availability of the Gini coefficient in the country should be taken into account.

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-February 2016 comprised 472.2 manat compared to 444.5 manat in January-February 2015.

However, wage index declined by 1.64 percent compared to the previous month.

Remuneration in the oil sector reached 2520,5 manat per month, the non-oil sector - 423,1 manat, the public sector - 355,1 manat, the private sector - 641,6 manat as of March 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 88,100 people were involved in the Azerbaijani construction sector during this period. The average monthly salary in the construction sector amounted to 811,9 manat, which is 23.8 percent more than in the same period of 2015.

The average monthly salary in state sector amounted to 515.6 manat (a 10.1 percent growth for the year), private companies - 927,1 manat (with an increase of 28.1 percent).

The level of wages in the construction of buildings increased by 8.8 percent in January-March 2016 - an average of 569 manat, specialized construction - by 46.4 percent - up to 1729 manat compared to the same period of 2015.

Labor market

As of April 1, 2016, some 32,300 people were officially registered as unemployed in Azerbaijan, including 37.8 percent women, the Azerbaijani State Statistics Committee's report said. The number of unemployed in the country increased by 11 percent compared to the same period of 2015.

The average monthly unemployment benefit in Azerbaijan is 251.7 manat.

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

As of March 1, 2016, the economically active population totaled 4.93 million people, of which 4.69 million people were engaged in labour activity.

Thus, as of February 1, 2016, the number of hired employees hit over 1.49 million people, including 883,200 people worked in the public sector, and 611,500 people - in private sector.

The number of people working in the oil sector amounted to 34,300 people, in the non-oil sector - 1.46 million people.

Around 21.3 percent fall to the hired employees involved in the production spheres: 6.3 percent in construction, 6.1 percent in manufacturing industry, 3 percent in agriculture, forestry and fishing, 2.3 percent - in the mining industry, 1.8 percent - in the production and distribution of electricity, gas and steam, 1.7 percent - in water supply, waste recycling, 22.7 percent in education, 19.1 percent - trade, repair of vehicles, 8.9 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, 3.6 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 Azerbaijani government continues taking measures to increase employment. Thus, according to the Ministry of Labour and Social Welfare, some 33,300 people were provided with jobs in Azerbaijan in the first quarter of 2016. According to the relevant decree of the Azerbaijani president, the productive work was carried out together with state companies in January-March to increase employment. Within a short period of time, these companies provided the employment bodies with information about almost 18,000 new vacancies. Moreover, employment contracts were concluded with almost 13,000 job seekers.

Social Security

Some 3,225,991 employees are socially insured in Azerbaijan. According to the Azerbaijani Ministry of Labor and Social Protection, some 45,837 people were registered in the individual registration system of the State Social Protection Fund in January-March.

The number of employees registered in the individual registration system increased by 185,000 people for the last year.

The number of foreigner employees registered in the individual registration system of the State Social Protection Fund under the Azerbaijani Ministry of Labor and Social Protection increased by 6,352 people for the year.

Some 1,578 foreign employees were registered in the individual registration system in January-March 2016. The number of insured foreign employees increased by 6,352 people compared to the same period of 2015.

Thus, the total number of foreign citizens registered in the Azerbaijani individual registration system increased up to 29,442 people, including 88 percent of men.

The labor rights of citizens from 120 world countries, mainly Turkey, Georgia and Russia were registered in the individual registration system.

Pension provision

The revenues of the State Social Protection Fund under the Azerbaijani Ministry of Labour and Social Protection increased by 3.6 million manat, amounting to 756 million manat in the first quarter of 2016 compared to the same period of 2015. It was possible to finance pensions for January and February ahead of schedule and in March - before Novruz holiday.

The fund's expenses amounted to 762 million manat in January-March. Some 98.4 percent of this amount accounted for the payment of pensions and benefits. As a result of increasing the basic part of labor pensions by 10 percent since February 1, some 26.5 million manat were allocated for these purposes in February-March.

The insurance part of labor pension increased in accordance with the consumer price index as of 2015. Moreover, the military pensions increased by an average of 23 manat in connection with an increase in salaries of certain categories.

As a result of the above-mentioned measures, the average monthly pension increased by seven percent up to 190 manat compared to early 2016, including labor pension on age - up to 210 manat.

According to the Ministry of Labour and Social Welfare, as of April 1, 2016, some 1,303,252 pensioners were registered in Azerbaijan, including 536,659 men and the rest are women.

Some 781,576 people receive old-age pension, 375,884 people - disability pension, 145,792 - pension due to loss of breadwinner.