"If someone sees a 400-manat allowance on one side and a 1,500-manat salary on the other, they will naturally choose to work"

"Targeted social assistance (TSA) is generally not a lifelong practice anywhere in the world. It is a transitional project." This statement was made by Musa Guliyev, the chairman of the Labor and Social Policy Committee of the Milli Majlis, during a committee meeting on November 28.

Targeted social assistance (TSA) has been implemented in Azerbaijan since 2006. At that time, monthly child benefits (child allowances) were discontinued in the country.

"Millions of our citizens have benefited from this project over the years. However, the most dangerous aspect of this project is that it detaches people from labor and makes them dependent. There have been numerous instances of fraud, with falsified documents submitted..." the deputy added.

For years, complaints regarding TSA have been heard in the country. On one hand, there are numerous allegations of individuals receiving such assistance through fraudulent documents. On the other hand, there are complaints about the low amount of assistance and unjustified rejections of applications.

Shaig Ahmadov (name changed), a resident of Baku, told Azadliq Radio that he could not obtain TSA and expressed his frustration: "I have my wife and two young children under my care. We live in a rental apartment. I am the sole breadwinner in the household. However, my job is unofficial, and my salary is too low to cover both the rent and the children’s expenses."

According to him, his application for social assistance was rejected: "They told me I need to have an official job and a source of income under my name to qualify for assistance. If I had a normal source of income, why would I need this assistance? Now I’m stuck."

According to the legislation, TSA is financial assistance provided by the state to low-income families. This type of assistance is available to families whose average monthly income per member is below the defined need criterion due to reasons beyond their control. For 2024, the need criterion in Azerbaijan has been set at 270 manats.

The Ministry of Labor and Social Protection of the Population told "Turan" that recent legislative changes have made the TSA program more accessible and its eligibility requirements significantly relaxed: "The number of data points required from families for electronic TSA applications has been greatly reduced, and this information is now obtained from relevant electronic databases. The data is then electronically verified... On-site verification is also conducted to prevent fraud, ensuring the family resides at the stated address."

The ministry emphasized that the average monthly amount of TSA per family has been steadily increasing: "The average monthly TSA payment per family has risen 13.1 times compared to 2006, reaching 470 manats as of September 1, 2024. Currently, TSA supports 77,000 families, covering 350,000 people. At the beginning of this year, nearly 65,000 low-income families with about 275,000 members were receiving TSA. As seen, there is an increase. Anyone eligible can receive TSA."

However, in recent years, the number of TSA recipients in the country has more than halved. According to the State Statistics Committee, by the end of 2023, 64,000 families, or 272,300 people, were receiving TSA. This figure represents a decrease of 18,500 individuals or 1,500 families compared to 2022. On July 1, 2017, TSA was provided to 120,300 low-income families, encompassing 498,400 individuals.

Officials highlight the introduction of a self-employment program as a replacement in recent years. The ministry noted that by the end of this year, micro-enterprises will be established for 92,000 families under the self-employment program.

However, there have been complaints regarding the health issues of livestock provided to families under the self-employment program. Such concerns have even been raised in parliament, though the government has taken a tough stance against criticism.

Economist Natig Jafarli told Radio Azadliq that the government is partly justified in this matter: "This type of social assistance is not lifelong. TSA is provided for a certain period, and the state offers employment opportunities to the recipient. Naturally, once the recipient accepts the job, TSA is terminated."

However, he also noted that the problem in Azerbaijan lies in the minimal difference between TSA and offered wages: "This is especially true in the regions, where wages are extremely low. Therefore, families and individuals receiving TSA think that even if they search for a job, the best they’ll find is a position paying 300-400 manats."

According to Jafarli, people are inclined to continue receiving social assistance if they cannot find well-paying jobs. "This is the case everywhere in the world. To eliminate this tendency, labor must be better compensated. Salaries in the country must increase so that individuals see a clear advantage: on one side, 400 manats of TSA; on the other, a 1,000-1,500 manat salary. Naturally, they would choose the latter. The current situation is the result of the government’s policies."