Weekly economic review

Analysis Materials 26 December 2006 12:02 (UTC +04:00)

The last week in Azerbaijan was remembered with the issue of several presidential decrees of social character. The new decree of Azerbaijan President Ilham Aliyev On Increasing the Minimal Wage says that starting from January 1, 2007, the minimal wage will reach the level of 40 AZN, Trend reports.

The Decree points out that it was intended for the improvement of the prosperity of Azerbaijan citizens, increasing their incomes, as well as more strengthen the social protection of the population

On December 22, 2006 the President of Azerbaijan, Ilham Aliyev, issued a decree to increase the basic part of the pensions.

In accordance with the decree, since January 1, 2007 the basic part of pensions will comprise 40 manats.

The increase of pensions has been on focus of ordinary people in Azerbaijan, which consider the rise of the benefit as the best ways of improvement of their welfare. The issue of decrees actually made happy all employees budget-funded organizations, as well as pensioners comprising 1185.5 people.

Taking in to consideration the high number of poor people appeared in the country as a result of the Armenian-Azerbaijani conflict and their plight on December 19, Azerbaijan's President Ilham Aliyev has signed an order on increasing the monthly allowance on nourishment granted to IDPs, Trend reports.

The document signed by the President says that starting from January 1, 2007, the allowance on nourishment granted to IDPs will increase by 50 percent. At present the allowance comprises 6 manats (approx. $6.6).

The President also awarded families of shehid (war martyrs), who died in defense of the territorial integrity of the country, benefits with respect to boost the state care of families of all those sacrificed their lives for independence of motherland. The benefit will comprise 100 manats a month. The stipends are paid by the Ministry of Labor and Social Security, at the expense of the public budget assignments allocated for social security.

So, the decrees mainly concerned the socially vulnerable layers of population. As of 1 January 2006, the poor in the country comprise 29.3% of all population and the presidential decrees should be followed by efficient reforms in the social sector so that to remove such problems.