The low-income group and their social protection in Azerbaijan

In Azerbaijan, pensioners, recipients with less than the average monthly salary, unemployed who have been unable to find work for many years, IDPs and persons equal to them who hardly pay their expenses with social benefits, the disabled, and disadvantaged social groups are included in low-income strata. At present, their number exceeds 40% of the population, and more than half of the actual population. The low-income group includes:

1. Pensioners. According to official figures, they are 1 million 291 thousand people, which is 13% of the country's population.

As of July 1, 2019, 1 million 291.3 thousand pensioners were registered, which is 13.0% of the country's population. 58.4% of them receive pensions for their age, 30.0% for disability, and 11.6% for the loss of a family head. The average monthly pension was 232.3 manat compared to the same period of last year and equals 39.7% of the average monthly salary.

2. Recipients with less than the average monthly salary in the country. Officially, their number is 800,000, which is 8% of the country's population.

As of September 1, 2019, the number of hired workers in the country's economy was 1 million 611.1 thousand, of which 899 thousand were employed in the public sector of the economy. As of today, the average monthly nominal wage in Azerbaijan is 589.3 manat, with the exception of 10 percent of workers, the salaries of workers of the public sector of economy are below the national average. Thus, the average monthly nominal salary for the period amounted to 311 manat in health and social services, 331.4 manat in agriculture, forestry and fishing, 376.6 manat in leisure, entertainment and arts, 379.9 manat in administrative and support services, 397.9 manat in trade, repair of vehicles, 405.6 manat in education, 416.9 manat in water supply, waste treatment and production, 554.5 manat in real estate transactions, and 555.9 manat in tourism, public catering.

3. Unemployed. Official figures show their number is 253.8 thousand people, which is 2.5% of the country's population.

Estimates based on the ILO methodology show that in 2018, there were 253,800 unemployed people in Azerbaijan, including 145,800 women and 108,000 working-age men.

According to the State Statistics Committee, as of October 1, 2019, the number of unemployed people registered in employment agencies was 74,100, of which 35.4% were women. For comparison, I would like to note that as of October 1, 2018, there were 34,760 people who were granted unemployed status by employment services. This means that as of November 1, 2019, the official unemployment rate in Azerbaijan increased by 213.2 percent compared to the same period of last year. At present, the average amount of unemployment insurance is 296.6 manat, and only 663 people were able to receive this money with unemployment status by the employment service.

4. Poors. Their number is 5.1% according to official data and 24% according to the World Bank estimates.

Analytical summary of the “South Caucasus in Motion”: In 2015 - the year when the national currency lost value two times in comparison with free currencies, the poverty level was 16 percent in Baku, 33 percent in the Ganja-Gazakh economic region, 30 percent in rural areas, and 24 percent nationwide. To note, according to the Ministry of Economy, last year the poverty level in Azerbaijan was 5.1 percent, which is 0.3 percent lower than in 2017.

5. Internally displaced persons and persons equal to them. According to official data, their number exceeded 1.2 million, which is 12.4% of the country's population.

According to official statistics, 1.2 million, or 12.4 percent of the Azerbaijani population are refugees and IDPs. While every 122 people in the world are refugees and IDPs, every 8 people are refugees and IDPs in Azerbaijan. From February 1, 2017, the monthly allowance for IDPs and persons equal to them is granted. As of March 1, 2018, the amount of allowance is set at 22 and 40 manats per person, depending on the situation with gas in tight temporary settlements. As of April 1, 2019, these amounts were raised to 33 and 60 manats, respectively. At present, 81,476 IDPs receive 33 manat and 415,081 IDPs receive 60 manat monthly allowance, which is not enough to cover their living costs at the minimum.

6. Disabled persons. The number of persons with disabilities is 620,000, which is 6.2% of the country's population in the official data.

According to the Ministry of Labor and Social Protection, there are about 620,000 disabled people in the country, some of whom are paid monthly disability benefits and in the lack of right to pension they are paid monthly social benefits. Thus, as of October 1, 2018, 30% of 1 million 309 thousand pensioners in our country are disabled, 60% of persons who receive monthly social benefits are disabled people and children with disabilities. From April 1, 2019, children under the age of 18 with disabilities and I group disabled will be provided with social benefits of 150 manat, II group disabled - 130 manat, and III group disabled - 110 manat.

In Azerbaijan, it is possible to classify the low-income strata in at least 6 groups, many of whom are suffering from poor living conditions, unemployment and poverty, and are unable to improve their livelihoods by receiving normal pensions and salaries, benefits and childcare. Although the government's social package was targeted primarily for this year, its ineffective and unsystematic implementation failed to meet the needs of that social group. At present, most of those in this group are unhappy with the policies of the current government. Not only have their living conditions improved in recent years, but it has gotten worse after two times devaluation of manat in 2015. Therefore, the increased spending from high inflation expected in 2020 compared to this year will further aggravate the relationship between the low-income group and the government until a new and effective social protection system is established.