Azerbaijan to create insurance fund for payment of unemployment benefit

Azerbaijan to create insurance fund for payment of unemployment benefit
# 13 June 2017 13:35 (UTC +04:00)

According to him, the draft law, containing 4 chapters and 26 articles, includes the details on creation of insurance fund for payment of unemployment benefits and financing of this fund. It has been developed for prevention of unemployment and staff reduction.

The law determines sources for payment of unemployment benefit in Azerbaijan in its article #21 (sources for insurance against unemployment).

The sources are:

- Premiums;

- Receipts from administrative penalties provided in the Code of Administrative Offences for violation of requirements of this law;

- Grants, donations, aids in accordance with the Law on Grant;

- bank loans;

- other sources considered accordingly to law and by relevant executive body.

MP Rajabli noted that AZN 90 million will be accumulated in the insurance fund: “So, unemployment benefit will be thrice more than 2016”

MP Gudrat Hasanguliyev noted that there is no need t adopt this law: “This law will allow insurers to earn money. According to the draft law, if a person receiving insurance payment refuses job twice, he/she will be deprived of unemployment benefit. 49^ of personal incomes in Azerbaijan are directed to payment of tax and social insurance fees. This is too high and the employers are not interested in signing Labour Contract. I think. If they pay unemployment benefit, number of these cases will increase”.

MP Ganiara Pashayeva expressed her concern about working without the Labour Contract: “Moreover, their salaries are reduced. How will the pensions of workers without labour contract and with reduced salary be? So, this law will be in favour of people with labour contract. We don’t see any company fined for not signing Labour contract”.

Vice-speaker of the parliament Ziyafat Asgarov said the draft law aims to improve the social protection of the population.

The draft law was adopted by voting.

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