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Azerbaijan's next Social reform package to cover about 3 million people

23 December 2024 18:31 (UTC +04:00)

New increases will be made in wages, pensions, social allowances, and scholarships, APA reports.

It was noted that the Order "On the continuation of measures to improve the social well-being of the population" signed by the President of the Republic of Azerbaijan Ilham Aliyev dated December 23, 2024, once again shows that the principle of ensuring citizen well-being is at the center of the head of state's policy and that the social reforms carried out for this purpose are successfully continued.

According to the Order:

• From January 1, 2025, the minimum monthly wage in Azerbaijan will increase from AZN 345 to AZN 400, with a 16 percent increase,

• From February 1, 2025, the minimum amount of labor pension will be increased from 280 manat to 320 manat, an increase of 14.3 percent.

Together with these increases, since the beginning of 2018, the minimum monthly wage has increased by 3.1 times and the minimum pension by up to 3 times.

The new social reform package also includes an increase in other social payments. By Order, the Cabinet of Ministers will submit proposals to the President of the country within 3 months on increasing the amounts of social allowances and pensions next year.

There was a 5-fold increase in benefits and pension payments between 2018 and 2024, and as can be seen, this growth dynamics will continue next year.

The Order also ensures that the Cabinet of Ministers will align monthly tariff (position) rates in government-funded sectors with the new increased minimum monthly wage.

Thus, the salary in the first tier of the Unified Tariff Schedule, consisting of 19 tiers in these areas (social, science, education, healthcare, culture, youth, sports, agriculture, ecology, environmental protection, housing and communal services, transport, communications, land reclamation, water management, etc.), will be increased to AZN 400, and corresponding increases will be applied to salaries in other tiers.

The new Order marks the beginning of the next social reform package, which will affect a total of 3 million people, with increases in salaries, pensions, allowances, and scholarships. An additional AZN 1.4 billion will be allocated annually to fund these increases.