Government Reaches into Workers� Pocket

Baku / 10.24.18 / Turan: In the package of laws of the state budget for 2019, the government proposed to the parliament a reduction of the interest rates of payments on compulsory social insurance for employers.

The government proposed to set the rates of payments for compulsory insurance at 3% for workers with a monthly salary of up to 200 manat, for employers - 22%, 6 manat and 10% of the amount exceeding 200 manat for workers with a salary of more than 200 manat, for employers - 44 manat and 15 % of the amount exceeding 200 manat.

Recall that earlier at a meeting of the Cabinet of Ministers with the participation of the President following the results of nine months of 2018, Minister of Taxes Mikayil Jabbarov noted that the fiscal burden on wages for employers is high and new proposals are being developed in this direction.

According to him, these proposals will encourage employers to transparency in drawing up an employment contract.

In reality, the government actually reaches into the workers" "pocket" and, at their expense, makes it easier for employers. Thus, at present, the rates of payments for compulsory social insurance are 3% for employees and 22% for employers.

In the case of the adoption of the proposals of the government, the real incomes of workers will noticeably decrease. In other words, the government makes life easier for the employer at the expense of the employee. -71D-