A significant step has been taken toward improving the state management system and strengthening the social protection of civil servants in Azerbaijan. According to a decree signed by President Ilham Aliyev on March 19, new salary schedules for employees working in state bodies have been approved. The new regulation covers 137 positions (108 administrative and 29 auxiliary) determined by job responsibility, workload, and complexity. A seven-tier differential salary system will be applied to each position to stimulate professional experience and expertise.
Classification of administrative positions (35 levels)
Salaries for the administrative category of civil service have been grouped into 35 levels based on the characteristics of central and local executive authorities, as well as the management load. In the structured table for central apparatuses and regions, the formation of the salary fund is based on the following principles:
- Leadership of supreme and central management bodies: Depending on the nature of the position, "gross" salaries (before taxes) range from 9,530 manats to 15,730 manats.
- Heads of structural divisions of ministries (Level 8): Salaries are set in the range of 8,245 — 9,485 manats (gross).
- Advisors of central apparatuses (Level 19): Salaries have been approved at the level of 3,720 — 4,280 manats (gross).
- Advisors of local executive authorities (Level 35): Taking into account regional specifics, salaries are set at 1,170 — 1,345 manats (gross).
Auxiliary positions (17 levels)
Auxiliary positions (chief specialist, inspector, clerk, courier, etc.) that provide technical and organizational support for the activities of state bodies are classified into 17 levels. Salaries in this category are determined according to the technical nature of the work, with gross amounts ranging from 760 manats to 1,340 manats depending on the status of the relevant body.
Deductions and calculation of net income
In accordance with legislative requirements, four types of mandatory payments are deducted from the gross salary of civil servants to ensure social security and accessibility to healthcare services:
- Income tax: Based on a progressive tax scale, 14% is deducted from amounts up to 2,500 manats, and 25% from the portion exceeding 2,500 manats.
- Mandatory State Social Insurance: 3% of income for pension provision.
- Compulsory Health Insurance: 2% for income up to 8,000 manats, and 0.5% for amounts above that.
- Unemployment insurance: 0.5% of income.
Practical Example: A civil servant at the first tier of Level 18 receiving a gross salary of 4,000 AZN will have a total of 780 manats deducted, including 560 AZN in income tax, 120 AZN in social insurance, 80 AZN in medical insurance, and 20 AZN in unemployment insurance. Consequently, the net income amounts to 3,220 manats. As the position salary increases, the percentage of total deductions also increases due to the progressive tax rate.
Scope of the decree
The new rules ensure a unified approach across all branches of the state management apparatus. The entities covered by the decree include the Presidential Administration, the Cabinet of Ministers, the Milli Majlis (National Assembly), supreme judicial instances, the Chamber of Accounts, the Office of the Ombudsman, as well as the central apparatuses of all ministries and state agencies.
The document also specifically regulates the activities of local management bodies. Prosecution authorities, local executive authorities (with specific clauses for Baku, Ganja, and Sumgait), as well as the supreme management bodies of the Nakhchivan Autonomous Republic, have been integrated into the newly approved salary system.
This reform aligns with Azerbaijan's broader strategy to modernize its public administration and ensure competitive compensation for state employees. By indexing salaries and clarifying the hierarchical structure, the government aims to increase transparency and efficiency within the civil service sector, which serves as the backbone of the country's institutional development.
