'There is a need for new rules for calculating the average salary'

At the Human Resources and Management Forum held today in Baku, Deputy Minister of Labour and Social Protection of Population, Anar Aliyev, announced that this year, the average monthly salary in Azerbaijan is expected to reach nearly 1,000 Manats. This projection comes as the country's economy experiences a positive trend in terms of salary growth.

According to the State Statistics Committee (SSC), data from January to March 2023 revealed an 11.4 percent increase in the average monthly salary of hired workers compared to the same period in the previous year. The figure amounted to 901.3 Manats, signifying a steady upward trajectory.

Furthermore, the Chairman of the Central Bank, Taleh Kazimov, shared insights during a meeting of the Milli Majlis Committee on Economic Policy, industry, and entrepreneurship, stating that annual inflation is expected to be around 8.3 percent by the end of the year.

In recent years, Azerbaijan has witnessed significant growth dynamics in social payments. The Ministry of Labor and Social Protection of the Population informed the Turan agency about  a remarkable 65.3 percent increase in the average monthly salary from 545 to 901 Manats between 2018 and 2023. This positive development indicates progress in the country's economic landscape.

Economist Natig Jafarli, in an interview with RadioAzadlig, expressed his opinion on the calculation of the average monthly salary in Azerbaijan, emphasizing the importance of considering the median salary as a more accurate indicator. Jafarli highlighted discrepancies among different sectors, such as banking and oil, which offer higher salaries compared to the education field. He advocated for a revised methodology to provide a clearer picture of the average monthly salary.

Jafarli also drew attention to the inflation calculation methods in Azerbaijan, which he believes do not comply with international standards. He proposed a separate calculation of the 30 most commonly used goods and services to present a more comprehensive analysis. According to The Economist, implementing this approach would likely yield higher official inflation figures, revealing a more objective representation of price growth in the country.

As discussions surrounding salary calculations and inflation methodologies continue, there is a growing consensus among experts that revising these practices would provide a more accurate reflection of the economic situation in Azerbaijan.