The Milli Majlis (National Assembly) of Azerbaijan has passed a bill in its final reading requiring the minimum wage to be reviewed at least once a year.
Operative Information Center-OMM reports that this significant amendment to the Labor Code was approved during a plenary session of the Milli Majlis spring session. According to the new regulations, the minimum wage amount will be regularly updated based on proposals from the relevant executive authority. This measure aims to ensure a minimum standard of living for employees and aligns with the social policy standards of global organizations such as the International Labour Organization.
A primary driver for the amendment is Azerbaijan's standing in international rankings. Specifically, the absence of a mandatory periodic update for the minimum wage in national legislation was a factor that negatively impacted Azerbaijan's score in the World Bank Group's "Business Ready" report. To address this, a relevant draft law was prepared under an action plan approved by the Deputy Prime Minister on February 19, 2025. The adoption of this project is expected to strengthen social protection within Azerbaijan while improving the country's position under the "Labor Force" indicator of the "Business Ready" report.
This legislative move reflects Azerbaijan's broader economic strategy to harmonize domestic labor laws with international best practices. By institutionalizing annual wage reviews, the government aims to provide a more predictable economic environment for both employers and employees. Such reforms are part of a comprehensive effort by the Cabinet of Ministers to modernize the national economy and enhance the welfare of the population in line with sustainable development goals.
