Will pensions and average wages increase in Azerbaijan?

An amendment has been made to the Labor Code providing for a review of the minimum wage at least once a year. Currently, the minimum wage is 400 manats and represents the lower limit of an employee's remuneration.

Economist Khalid Kerimli, in a comment to Baku TV, noted that the introduced changes will better protect the income of low-wage employees from inflation.

According to him, the minimum wage was previously reviewed once every 2-3 years, but during that time inflation, especially in recent years, was growing at a rapid pace. At the same time, food prices, which account for a significant share in the expenditure structure of low-income citizens, are increasing even faster. In this regard, a mandatory annual review of the minimum wage can prevent the depreciation of low-paid workers' income and help maintain their real income.

It is noted that this process may also affect the size of pensions. According to the legislation, labor pensions are indexed in accordance with the growth of the average monthly wage in the country.