SALARY IN AZERBAIJAN

Azerbaijan is located in southwestern Asia (in the eastern part of Transcaucasia) on the coast of the Caspian Sea. It has land borders with Russia, Georgia, Armenia and Iran. The population in 2023 is just over 10 million people. The official currency in the state is the Azerbaijani manat. At the current exchange rate, 1 manat corresponds to 0.6 dollars.

Salary in Azerbaijan

The economy of Azerbaijan is largely dependent on oil and gas exports. Despite the local government's efforts to implement market-oriented economic reforms and diversify trade, including with the European Union and Turkey, the country is still very dependent on world energy prices. Interestingly, the abundance of natural resources does not significantly increase the standard of living in Azerbaijan.

Next, let's find out what is the minimum and average salary in Azerbaijan in 2023, designate labor remuneration by sectors of the economy and some cities.

Minimum salary in Azerbaijan

According to the local government, the official minimum wage in Azerbaijan in 2023 is 345 manat per month, which is equivalent to 205 dollars. Compared to last year, Azerbaijani workers began to receive 45 manat more. That is, there is a 13% increase in salaries (300 manat in 2022). For four years the minimum wage in Azerbaijan has increased 2.7 times, and for the past 7 years almost 3.3 times.

In recent years, the Azerbaijani authorities have made consistent and timely efforts to improve social protection and increase social payments to vulnerable segments of the population. Nevertheless, the ratio of the minimum wage to the average monthly wage increased from 24 to 40 percent. On the other hand, back in 2016, the minimum wage in Azerbaijan was only 105 manat per month, and today it is 345.

Average salary in Azerbaijan

According to official data from the Ministry of Labor and Social Protection, the average salary in Azerbaijan in 2023 is 856.2 manat per month, which corresponds to 505 dollars. Compared to the same period last year, the country has seen a 5.5% increase in income. Workers in the field of mining receive the most – 3088.3 manat per month, and the least brings the sphere of administrative and support services – 431.6 manat.

The highest salaries in Azerbaijan are offered by the capital Baku. The capital's workers receive an average of 927.8 manat per month. The lowest monthly incomes are recorded in such cities as Gakh, as well as Barda and Agdam – 393.9 and 394.9 manat respectively. Civil servants in Azerbaijan earn on average 1,215.5 manat per month. The number of economically active population of the country is about 5 million people.

AVERAGE SALARY IN AZERBAIJAN BY SECTORS OF ECONOMY

Sector of economy Manat per month
Extraction of minerals 3,088.3
Financial and insurance activity 1,937.6
Professional, scientific and technical activity 1,208.9
Information and communication 1,155.4
Public administration and defense 985.3
Transportation and storage 953
Construction 887.9
Supply of electricity, gas, steam and air conditioning 770
Manufacturing 685.2
Real estate operations 660
Accommodation and food services 584.9
Health care and social work 568.2
Water supply, sewerage and waste management 549.6
Wholesale and retail trade 536.8
Arts, entertainment and recreation 535.7
Education 526.1
Agriculture, forestry and fishing 456.9
Administrative and support services 431.6
Other 758.5

Note. Information on average salaries by sectors of economy is based on official data of the Ministry of Labor and Social Protection of Azerbaijan.

In conclusion, the income tax rate in Azerbaijan is 25% and the unemployment rate does not exceed 6%.

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