Azerbaijani parliament sets minimum wage below cost of living

Azerbaijan has set the cost of living and minimum wage amounts for 2019.

Both of them increased by several manat – the cost of living will be 180 manat (about $106), while the minimum wage was set at 143 manat, or about $85.

The cost of living is, however, higher than the minimum wage. The government of Azerbaijan claims that it does not have the means to reduce the gap nor deal with the issue.

What are these numbers?

The cost of living is the minimum amount a person needs per month to eat properly and to meet other basic needs. In other words, the cost of the consumer basket, taking into account prices for a given year.

The minimum wage is the minimum amount a worker can be paid per month for an 8-hour workday. This amount coincides with the criterion of need: people with a monthly income below this minimum should receive benefits from the state.

• Why has the state budget been re-examined in Azerbaijan and what has changed?

• Will Georgia’s grey eminence pay off the public’s debt?

The minimum subsistence amount, minimum wage and, accordingly, the criterion of need, is set by the Azerbaijani government every year and increases annually.

From 2014 to 2018, the cost of living increased by 48 manat. In 2014, it was 125 manat, and by 2018 it reached 173 manat. In 2015 two devaluations took place, and the manat lost almost 200 per cent of its value.

Social media outrage

“We should make them live on 143 manat per month.”

“With such MPs in parliament, we don’t even need enemies.”

“Other than curse words, nothing else comes to mind.”

This was in reaction to remarks made by MP Hadi Rajabli, who said at a parliamentary meeting that 143 manat was enough for her to live on for a month.