The depreciation of the manat affects its purchasing power. Against the background of general price increase of goods, people are beginning to count the losses due to the devaluation of money, taking into account the income, including wages.
Many people believe that the state will not leave them alone with rising prices and make a minimum index of wages.
The Chairman of the League for Protection of Labor Rights Sahib Mammadov noted that the practice of indexing for inflation only applies to the insurance part of labor pensions. In the public sector wage indexation is not practiced, and the private sector cannot be obliged to do that. "At the same time, experience from previous years knows increasing salaries of civil servants and state employees. What will happen this time is too early to speak," Mammadov said.
The lawyer Khalid Bagirov shares this position. According to him, the indexation of wages for public sector employees is not a legal but a political decision.
Turan News Agency’s expert Togrul Juvarly does not share the optimism of the public about the government's willingness to wage indexation. "In the face of declining revenues and the state budget problems with the execution of the expenditure part, it would be naive to believe that the government will increase salaries for more than 500 thousand people. At the same time, the government is considering the growth of salaries as an inflation factor," said the expert.
Signed in July 2014, the two-year Collective Tripartite Agreement (government, employers and trade unions) provides for indexation of wages to inflation. However, the parties have not held consultations on the issue.
The Confederation of Trade Unions of Azerbaijan, in turn, told Turan, that appeals to the government on this issue could be made after certain time to fully clarify the situation in the consumer market.
Note that the second devaluation of the manat has led to the fact that the average monthly wage in Azerbaijan dropped below the indexes for Georgia and Armenia. ----08B
Economics
-
On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
-
Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
-
Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
-
Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
Leave a review