Salary payments will be digitalized in Azerbaijan, APA reports.
This is reflected in a proposed amendment to the Labor Code.
According to the draft amendment, to ensure compliance with legislative requirements by participants in labor relations, monitor the timely payment of employees' salaries in the amounts stipulated by law, and prevent informal employment, salaries and other payments to employees will be transferred through an electronic payment system to bank accounts selected by the employees themselves.
As a result of the adoption of the proposed legal act, providing information on relevant transfers to salary cards to the authority responsible for state supervision of labor legislation will be of great importance in terms of increasing transparency in labor relations and ensuring more effective protection of employees' rights. The introduction of such a system will make it possible to strengthen oversight of employers' timely and full payment of salaries. Consequently, detecting and eliminating violations related to salary payments, including delays, reductions, or concealment of payments, will become easier. This will create conditions for ensuring fairness and social justice in the labor market, protecting employees' rights, and strengthening socioeconomic stability.
With the introduction of the monitoring mechanism, the authority responsible for state supervision of labor legislation will be able to ensure transparency in labor relations between employees and employers and will have an effective monitoring system to ensure the correct payment of salaries. This will also facilitate the timely identification of violations in labor relations and the implementation of appropriate measures. Thus, the introduction of a modern and effective mechanism for monitoring salary payments could make a significant contribution to improving the enforcement of labor legislation, protecting employees' rights, and ensuring the sustainable development of the labor market in the country.
As a result, wage payments will be fully digitalized, and employers' workload related to the recording, calculation, and payment of wages will be reduced. In the future, there will be no need for employers to submit declarations to tax authorities regarding income tax on wages, social insurance contributions, unemployment insurance contributions, and compulsory health insurance contributions. Quarterly declarations will be replaced by monthly data, state supervision over wage payments in accordance with legislation will be strengthened, and an electronic (proactive) monitoring mechanism will be established.
At the same time, measures to combat informal employment will be strengthened, the automatic transfer of mandatory state social insurance contributions to individual personal accounts within the insurance pension system will be ensured, the automatic calculation of average monthly salaries in cases involving business trips, leave, loss of working capacity, and other circumstances will be provided, and citizens' access to their own income history will be expanded.
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