The legalization of informal employment in Azerbaijan has made it possible to expand the social protection system and create an additional financial source for solving housing problems, Azerbaijan’s Minister of Economy Mikayil Jabbarov said during his speech at the dialogue session titled “Transforming informal settlements and slums: housing for the world” held within the framework of WUF13, APA-Economics reports.
According to the minister, governments are trying on the one hand to reduce the shadow economy related to informal settlements, and on the other hand to create financial resources to solve this problem.
Mikayil Jabbarov noted that the legalization of informal employment was carried out in Azerbaijan within the framework of a targeted reform launched in 2019 and continuing until 2025.
According to him, individuals who previously received salaries in cash and remained outside the social protection system were later included in the social insurance system. As a result of this process, revenues increased, and part of these funds was directed toward housing provision for people in need of social protection.
The minister stated that as a result of the fiscal reforms carried out, budget revenues obtained from the legalization of employment increased by more than three times in real terms.
Mikayil Jabbarov stressed that this approach made it possible both to gain the support of communities and to create a sustainable source for financing social needs.
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