Government Preparing to Revise Cost of Living

In parliamentary committees, discussions are held about living wage laws and criteria needs for state social assistance in 2015. Slight increase in their brackets is planned.

Subsistence level is planned to increase from the current 125 to 131 manat. For the working-age population (in 2014 - 136 manat) the figure is 140 manat, pensioners and children (103 manat) - 108 manat.

MPs who receive monthly salaries in 1575 manat (excluding surcharges and various accruals) regarded positively the bills received from the Administration of the President.

Note that according to the law of Azerbaijan «On Living Wage" from 2014, the minimum wage, as well as the basic part of labor pensions, should match the size of the subsistence minimum. In addition, in determining various allowances, scholarships, etc. payments and the need criterion for the appointment of targeted social assistance the size of the subsistence minimum is also considered.

Independent economists referring to components of the minimum consumer basket estimate that the officially determined cost of living, which also includes mandatory payments, in addition to the sum of the minimum consumer basket, shall not be less than 200 manat. According to the economist Rovshan Agayev, the structure of the consumer basket in Azerbaijan meets the standards of low-level development. "For example, in Azerbaijan, the annual consumption of meat per capita is 28 kg. This is 2.5 times less than in developed countries. The same applies to the consumption of fish and vegetables. Honey is not included in the list of goods. The Azerbaijani government has not seen fit to include broadband Internet in the list of services either," said the expert.

Agayev believes that the subsistence level in Baku should be different, taking into account the growing number of expensive items, because there is a need to differentiate the index between the capital and the regions. --08B--