Minimum Wage Fixing Convention, 1970 (No. 131) - Azerbaijan (Ratification: 1993)

Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 131 (minimum wage) and 95 (protection of wages) together.

Minimum wage

Article 3 of Convention No. 131. Criteria for determining minimum wage levels. In its previous comments, the Committee requested the Government to provide information on how it ensured that the needs of the workers and their families were taken into account in determining minimum wage levels. The Committee takes note of the Government’s indications in its report that: (1) the minimum subsistence level is taken into account when determining the minimum wage level; (2) the minimum wage has increased significantly since 2004; (3) the Government is committed to bringing the minimum wage level closer to the average wage, as reflected in the concept of development “Azerbaijan 2020: Look into the Future” that was adopted by the President of the Republic through Decree No. 800 of 29 December 2012; and (4) the Government received technical assistance from the Office in 2015 on its minimum wage policy. The Committee requests the Government to continue to provide information on any developments in this respect.

Article 4(2). Participation of the social partners in the minimum wage fixing machinery. In its previous comments, the Committee observed that pursuant to section 155(6) of the Labour Code and section 5.3 of the Act on the Minimum Subsistence Level, the national minimum wage level was established by the Cabinet of Ministers without any reference to prior consultations. The Committee takes note of the Government’s indication that the Cabinet of Ministers, the Confederation of Trade Unions of Azerbaijan (AHIK) and the National Confederation of Entrepreneurs (Employers) of Azerbaijan (ASK) concluded a tripartite General Collective Agreement for 2016–17 by which the parties agreed to continue to gradually raise the minimum wage level.

Protection of wages

Article 4 of Convention No. 95. Partial payment of wages in kind. The Committee takes note of the information provided by the Government in its report in relation to wage payments in kind made in accordance with section 174(3) of the Labour Code.

Article 8. Deductions from wages. In its previous comments, the Committee noted that section 175(1) of the Labour Code allows deductions from wages based on the worker’s consent. Recalling that provisions of national legislation which permit deductions by virtue of individual agreements or consent are not compatible with Article 8 (2003 General Survey on the protection of wages, paragraph 217), the Committee requests the Government to take the necessary measures to bring the national legislation into conformity with Article 8.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

Articles 1, 2(2) and 4(2) of the Convention. Participation of the social partners in the minimum wage fixing machinery. The Committee notes the general collective agreement concluded annually between the Cabinet of Ministers, the Azerbaijan Trade Union Confederation and the Azerbaijan Entrepreneurs’ Confederation by which the parties commit themselves to increase the minimum wage so as to gradually bring it closer to the cost of living. It observes, however, that under section 155(6) of the Labour Code and section 5.3 of the Act on the minimum subsistence level, as last amended in 2006, the national minimum wage and the ratio of the minimum wage to the cost of living are determined by the appropriate executive authority, i.e. the Cabinet of Ministers, without any reference being made to prior consultations with representative organizations of employers and workers concerned. The Committee requests the Government to specify how it is ensured in law and in practice that genuine and effective consultations with employers’ and workers’ organizations are held at all stages of the establishment and periodic readjustment of the national minimum wage, as required under these Articles of the Convention.

Article 3. Criteria for determining minimum wage levels. The Committee notes the Government’s indication that the national monthly minimum wage is currently set at 85 Azerbaijani new manats (AZN) (approximately US$106), which is less that the national average cost of food consumption basket (AZN93.5 or approximately US$120) and also less than the national average cost of living (AZN95 or approximately US$122). It also notes that the national minimum wage currently represents 26.2 per cent of the average wage whereas in accordance with the requirements of the European Social Charter, ratified by Azerbaijan in 2005, it should not be less than 60 per cent of the average wage. Recalling that minimum wage fixing may be a meaningful tool for poverty reduction and social protection only if it ensures the satisfaction of the basic needs of workers and their families, the Committee requests the Government to indicate the measures it intends to take so that the national minimum wage provides low-paid workers with a decent standard of living.

Article 5 and Part V of the report form. Practical application. The Committee notes the statistical information provided by the Government concerning the evolution of the minimum wage, the average wage and the cost of living in recent years. The Committee would be grateful if the Government would continue to provide up-to-date information on the application of the Convention in practice, including, for instance, statistics on the evolution of the minimum wage as compared to the evolution of the cost of living or the cost of the food consumption basket, inspection results showing infringements of the relevant legislation and the sanctions imposed, and copies of official publications such as the economic surveys used for the purposes of readjusting the level of the national minimum wage.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the Government’s report and would appreciate receiving further information on the following points.

Articles 1, 2(2) and 4(2), of the Convention. The Committee notes the Government’s reference to the General Collective Agreement for 2004-05, a tripartite agreement concluded among the Cabinet of Ministers, the Azerbaijan Trade Union Confederation and the Azerbaijan Entrepreneurs’ Confederation, in which the parties committed to consecutive increases in the minimum wage in order to gradually bring it up to the minimum subsistence level. However, the Committee is bound to observe that in the light of section 155(6) of the Labour Code of 1999, no institutionalized machinery seems to exist whereby employers’ and workers’ representatives may be regularly consulted on an equal footing with a view to determining or adjusting the national minimum wage. The Committee therefore asks the Government to provide a copy of the General Collective Agreement 2004-05 which has not been received, and to specify the legal provisions giving effect to the requirements of the Convention for effective consultation and direct collaboration of the social partners in all stages of the minimum wage fixing process.

Article 3. The Committee notes the explanations provided by the Government on the minimum subsistence level, as set out in the Act on the minimum subsistence level of 2004 and the resolution of the Cabinet of Ministers No. 185 of 23 June 2005. The Committee understands that the minimum subsistence level represents in fact the poverty line to be calculated every three years on the basis of a minimum consumer basket. The minimum subsistence level is currently established at AZN56.9 (approximately US$63) or practically double the national minimum wage currently in force. The Government is thus fully aware that the minimum wage is far from guaranteeing a decent standard of living, and intends to progressively narrow the gap between the minimum subsistence level and the national minimum wage. In 2007, for instance, the national minimum wage is expected to represent 71.4 per cent of the minimum subsistence level. In this regard, the Committee expresses its hope that the Government will spare no effort in order to gradually raise the minimum wage above the poverty line, and that the social partners will be fully consulted in that process.

Article 5 and Part V of the report form. The Committee notes that the national minimum wage is to be raised from its current AZN30 (approximately US$33) rate to between AZN40-50 (approximately US$45-55) as of 1 January  2007. It would be grateful if the Government would continue to provide up to date information on the practical application of the Convention, such as the size and composition of the workforce subject to the minimum wage legislation, information on the evolution of the national minimum wage in past years as compared to the evolution of economic indicators such as the inflation rate in the same period, labour inspection results showing the number and nature of contraventions observed and sanctions imposed, copies of official reports or studies relating to the minimum subsistence level, etc.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the Government’s report and wishes to draw attention to the following points.

Articles 1 and 4, paragraph 2, of the Convention. The Committee notes that under section 155(6) of the 1999 Labour Code the minimum wage is determined by presidential decree but no reference is made to the requirement for prior consultations with representative organizations of employers and workers concerned. Recalling that the Convention requires the full consultation and direct participation of the social partners at all stages of the wage-setting process, the Committee requests the Government to indicate the measures taken or envisaged to ensure that the employers’ and workers’ interests are equitably represented and duly considered while establishing or revising minimum wage levels.

Article 2, paragraph 2. The Committee notes the reference to the General Collective Agreement for 2001-02 which was signed between the Cabinet of Ministers, the Azerbaijan Trade Union Confederation and the National Confederation of Entrepreneurs’ Organizations and which provides for consecutive increases in the minimum wage so that it gradually reaches the minimum subsistence level. The Committee asks the Government to supply a copy of this agreement.

Article 3. The Committee notes the explanations of the Government concerning the economic factors, such as the inflation rate or the resources available in the state budget, which are determinant with regard to the periodic readjustment of the minimum wage rate. Noting that under section 155(2) of the Labour Code, the minimum wage is defined as a social norm which is based not only on economic but also on social conditions, the Committee requests the Government to indicate whether and how it is ensured that minimum wage increases adequately reflect the needs of workers and their families, for instance by maintaining their purchasing power in relation to a basic basket of essential consumer goods.

Article 5 and Part V of the report form. The Committee notes that according to the Government’s report the minimum wage rate was last raised in 2001 and is now set at 27,500 manat (US$5.7). It also notes the Government’s indication that this minimum wage is actually paid in the public sector and applies to less than 1 per cent of the workforce, while in the manufacturing sector the level of the minimum wage established by collective agreements is several times higher. The Committee understands that under a presidential decree issued earlier this year the minimum monthly wage was raised to 45,000 manat with a further increase to 60,000 manat to take effect as from 1 January 2004. The Committee requests the Government to continue to provide all available information concerning the practical application of the Convention, including for instance the evolution of the national minimum wage as compared to the evolution of the consumer price index in recent years, statistical data on the number of workers covered by relevant legislation, reports from inspection services concerning the number of minimum wage-related offences reported and the sanctions imposed, official surveys addressing minimum wage questions as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.

Direct Request (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

Article 1 of the Convention in conjunction with Article 4, paragraph 3(a) The Committee notes the Government’s statement that the issues relating to the fixing of a minimum wage applicable to all categories of workers are dealt with in the 1997 General Agreement between the Government and the Azerbaijan Confederation of Trade Unions. The Committee requests the Government to provide a copy of this agreement and to indicate to what extent employers are involved in the minimum wage fixing machinery. It again requests the Government to specify how equality of participation of representatives of employers and workers is ensured.

Article 2, paragraph 1, in conjunction with Article 5 and Part V of the report form. The Committee notes that the current monthly minimum wage of 5,500 manats was established in February 1995 and that the General Agreement includes provisions to ensure that the minimum wage will be increased in stages in accordance with available resources to a level equivalent to 20 per cent of the minimum consumer budget. It also notes that a state labour inspectorate was set up and is being organized.

The Committee requests the Government to indicate the functions of the state labour inspectorate with respect to the supervision and enforcement of the minimum wage, including the results of inspections that have been carried out (e.g., the number of violations of minimum wage provisions, the penalties imposed, etc.). The Committee also asks the Government to provide other general information on the application of the Convention in practice, such as the minimum wage rate(s) in force, the available data on the number and different categories of workers covered by minimum wage provisions, etc.

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the information provided in the Government's report in reply to its previous request.

Article 1 of the Convention in conjunction with Article 4, paragraph 3(a). The Committee notes the Government's statement that the issues relating to the fixing of a minimum wage applicable to all categories of workers are dealt with in the 1997 General Agreement between the Government and the Azerbaijan Confederation of Trade Unions. The Committee requests the Government to provide a copy of this agreement and to indicate to what extent employers are involved in the minimum wage fixing machinery. It again requests the Government to specify how equality of participation of representatives of employers and workers is ensured.

Article 2, paragraph 1, in conjunction with Article 5 and point V of the report form. The Committee notes that the current monthly minimum wage of 5,500 manats was established in February 1995 and that the General Agreement includes provisions to ensure that the minimum wage will be increased in stages in accordance with available resources to a level equivalent to 20 per cent of the minimum consumer budget. It also notes that a state labour inspectorate was set up and is being organized.

The Committee requests the Government to indicate the functions of the state labour inspectorate with respect to the supervision and enforcement of the minimum wage, including the results of inspections that have been carried out (e.g., the number of violations of minimum wage provisions, the penalties imposed, etc.). The Committee also asks the Government to provide other general information on the application of the Convention in practice, such as the minimum wage rate(s) in force, the available data on the number and different categories of workers covered by minimum wage provisions, etc.

Direct Request (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes the Government's first report and requests it to supply further information on the following points:

Article 4, paragraph 3 of the Convention. The Committee requests the Government to indicate the measures taken or envisaged to allow, wherever appropriate, the direct participation of the categories of persons covered by the present proposals in the application of the minimum wage-fixing machinery. The Government is also asked to specify in regard to paragraph 3(a), how equality of participation by representatives of employers and workers is ensured.

Article 5, in conjunction with point V of the report form. The Committee notes that, according to the Government's report, section 261 of the Labour Code establishes the general principle of supervising application of laws, including those on minimum wages, by the Attorney General of the Republic. Trade unions are also responsible for supervision. Furthermore, the Government indicates that a corps of government inspectors is being constituted.

The Committee requests the Government to indicate the measures taken or envisaged in the framework of establishing the Government inspectors' corps and to supply, where appropriate, information about their functions, powers and activities in relation to minimum wages (including the number of infringements recorded, sanctions imposed, etc.).