Azerbaijan is set to improve the mechanism for determining the minimum wage by establishing a mandatory legislative requirement for its review at least once a year. According to Operative Information Center-OMM, a proposed amendment to the Labor Code was discussed during today's meeting of the Milli Majlis (National Assembly) Committee on Labor and Social Policy.
Under the proposed draft law, the amount of the minimum wage will be reviewed by the competent executive authority at least once a year, based on proposals submitted by a body designated by the relevant executive authority. During the discussions, officials emphasized that the minimum wage plays a crucial role in ensuring the minimum living standards for employees and remains a key social policy tool globally, closely monitored by international organizations including the International Labour Organization (ILO).
The initiative stems from the World Bank Group's "Business Ready" report, which identifies the lack of mandatory periodic updates to the minimum wage in national legislation as a criterion that negatively impacts a country's ranking. In response, a draft law was prepared in accordance with the action plan approved on February 19, 2025, by the Deputy Prime Minister and Chairman of the Commission on Business Environment and International Rankings. The project aims to implement legislative reforms in labor relations and employment within the framework of the "Labor Force" indicator of the World Bank's report.
The adoption of these changes is expected to ensure sustainability in determining the minimum wage, strengthen social protection mechanisms, and eliminate factors that negatively affect Azerbaijan's standing in international reports. In recent years, the Republic of Azerbaijan has consistently implemented social reform packages aimed at increasing the social welfare of its citizens, with the minimum wage being a central component of the government's strategy to align national standards with global economic benchmarks.
