OMM Redaksiyası
A possible increase in Azerbaijan’s minimum wage in 2027 has come onto the agenda. Amendments to the Labor Code adopted last year require the minimum wage to be reviewed at least once a year.
“Operative Information Center-OMM”, citing ITV, reports that MP Vugar Bayramov expects funds for a minimum-wage increase to be included in next year’s state budget.
Increase could affect more than 700,000 people
Bayramov said that after the minimum wage is raised, salaries for people working in state institutions who are not civil servants are also expected to be adjusted.
In that case, anticipated changes to the minimum wage in 2027 could affect more than 700,000 people, he said.
The MP noted that the change would not concern only people who earn the minimum wage. Salaries could also rise for non-civil servants working in state institutions.
As a result, an increase in the minimum wage could affect both the average monthly salary and the incomes of people whose salaries are set by a Cabinet of Ministers decision.
How should the minimum wage be set?
Economist Khalid Karimli said that setting the minimum wage should involve consideration of a range of economic indicators, not only the size of a possible increase.
He said decision-makers should take into account economic growth and development, employment conditions, labor productivity, the trend and current level of average monthly wages, as well as the manat’s purchasing power and inflation.
The economist emphasized that labor productivity is one of the key indicators.
When will the final amount be known?
Experts say that setting a new minimum wage requires balancing the protection of workers’ incomes against the financial burden on employers.
The specific minimum wage for 2027 is expected to be clarified during discussions on the state budget.
The minimum wage is the legally established lowest rate of pay for work. In Azerbaijan, a review at least once a year provides a framework for considering wage changes alongside economic conditions and budget planning.
