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

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

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.