An hourly wage system will be introduced in Azerbaijan, APA reports.
This is reflected in a proposed amendment to the Labor Code.
According to the draft amendment, hourly wages will be established in one of the following cases:
- When an employment contract is concluded for a period of less than one month at enterprises operating in types of economic activities included in a list approved by a body (institution) designated by the relevant executive authority, as well as at workplaces created by employers who are individuals;
- When weekly working hours are set at 20 hours or less.
The application of hourly wages will be permitted in budget-funded institutions if provided for under their established remuneration systems. The wages of employees working part-time and receiving monthly salaries cannot be lower than the amount calculated from the minimum monthly wage in proportion to their established working hours.
The wage paid for each hour worked by an employee whose remuneration is determined on an hourly basis and who has performed their job duties cannot be lower than the minimum hourly wage. If the daily working time of an employee paid on an hourly basis is less than one hour, the wage paid to the employee cannot be lower than the minimum hourly wage. If an employee's subsequent period of work is less than one hour, that period must also be counted and paid as one hour.
The minimum hourly wage must be set at a level higher than the hourly tariff (position) salary calculated on the basis of the minimum monthly wage.
Employees whose wages are determined on an hourly basis must be paid at the time specified in their employment contracts.
It was noted that the minimum wage, which aims to ensure wages that provide employees with a minimum standard of living, is currently one of the instruments of social policy worldwide. Regulation of the minimum wage is among the issues addressed and closely monitored by many international organizations, particularly the International Labour Organization (ILO).
The minimum hourly wage ensures equal treatment in remuneration for employees working both full-time and part-time. The minimum hourly wage is particularly important for certain categories of employees hired under short-term contracts or working part-time hours. Under the current legislation of the Republic of Azerbaijan, the minimum wage applied in the country covers a monthly period, and in some cases, employees are paid wages below the minimum level. Under existing labor legislation, employees are remunerated through time-based, piece-rate, and other payment systems, with different rules governing wage payments in various circumstances, such as remuneration for performing different types of work, remuneration when combining professions, remuneration when production quotas are not met, and remuneration for part-time work.
Establishing a minimum hourly wage for certain categories of employees ensures a more flexible approach to the minimum wage, equal treatment among employees, the establishment of a wage calculation mechanism for employers, and the prevention of abuse. It also allows employees to be paid for the hours they actually work, rather than according to the expected standard working week.
In this regard, new provisions concerning the minimum hourly wage have been included in the Labor Code of the Republic of Azerbaijan to improve labor relations, increase the flexibility of the wage system, and strengthen minimum wage guarantees for employees.
According to the amendments, the concept of hourly wages has been established in legislation alongside monthly wages. This provides for the regulation of remuneration for employees working in certain sectors of economic activity on the basis of an hourly payment system and ensures that wages paid for each hour worked are not lower than the minimum hourly wage established nationwide.
At the same time, the Code stipulates that the wages of employees working part-time and receiving monthly salaries cannot be lower than the amount calculated from the minimum monthly wage in proportion to their established working hours.
The list of economic activities to which the hourly wage system will apply will be determined by the Cabinet of Ministers of the Republic of Azerbaijan. The list is expected to include agricultural production and public catering services.
Under the relevant rules, the hourly wage system is envisaged to apply when employment contracts are concluded for periods of less than one month at enterprises operating in the specified sectors and at workplaces created by employers who are individuals, or when weekly working hours are set at 20 hours or less, regardless of the type of economic activity.
The new approach will make it possible to calculate wages according to the actual hours worked, particularly for individuals employed under short-term employment contracts and those working part-time. At the same time, establishing a minimum payment guarantee for each hour worked will help protect employees' rights and increase transparency in labor relations. The introduction of the minimum hourly wage system will contribute to the development of a more flexible mechanism for determining wages, greater transparency in labor relations, and the application of advanced international practices.
The adoption of the draft law will not create an additional financial burden on the state budget.
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