A regular meeting of the parliamentary Labour and Social Policy Committee was held via videoconference on 22 November. Committee Chairman Musa Guliyev said that 8 draft laws contained in the 2023 state budget package were being submitted for discussion in the second reading.

He shared his views on the Bills, noting that according to the draft budget of the State Social Protection Fund for 2023, its revenues and expenditures would reach AZN 6.3 bn next year. The average monthly pension is projected at AZN 423, the retirement pension at AZN 455, the disability pension at AZN 369 and the pension paid in case of the loss of breadwinner at AZN 374 next year.

Mr Guliyev spoke about the 2023 budget of the Unemployment Insurance Fund, noting that the next-year income and expenses of the Fund would equal AZN 212.7 mn, allowing it to solve unemployment issues in 12 areas. By the way, self-employment programme implemented by the Fund is progressing successfully and it is planned to cover with it about 17,000 citizens this year, according to the parliamentary committee chairman.

In addition, Mr. Guliyev said, both the living wage and the criterion of need would be increased next year, with the latter to be equated to the living wage and thus amount to AZN 246 for the first time. This is seen as a positive result of reforms in the socio-economic sphere.

The attending Director of the State Social Protection Fund Himalay Mamishov mentioned the next-year budget of the Fund having been forecast to equal AZN 6 bn 264 mn and 76% of the total projected revenues or AZN 4 bn 784 mn set to come in mandatory state social insurance proceeds. The 2023 transfer is to equal AZN 1 bn 468 mn. Further, 97% of the aggregate expenditure or AZN 6 bn 78 mn will go down in public payments; AZN 5 bn 907 mn is to be paid in labour pensions and AZN 170 mn as benefits from the statutory social security contributions. Mr Mamishov voiced other budgetary parameters and told the meeting participants of the Fund’s current operations, achievements and earmarked projects.

Chairman of the Board of the State Employment Agency under the auspices of the Labour and Social Protection (of the Population) Ministry Mustafa Abbasbayli announced his agency’s 2023 budget projection as equalling AZN 212.7 mn. He spoke about ensuring transparency in self-employment, establishing small enterprises in 42 topical areas, the work done on vocational training and the use of modern innovations, digitalisation, e-administration and e-employment contracts. Steps taken to eliminate informal employment and prepare young people for the future labour market were outlined as well.

Head of the Social Legislation Department of the parliamentary staff informed the meeting participants of the other four Bills in the budgetary parcel.

The second-reading amendments to the Labour Pensions Law envisage the extension of insurance periods by three years – till 2026, that is.

The second-reading amendments to the Social Insurance Law define the mechanism for subsidising compulsory state social insurance contributions in the de-occupied territories of Azerbaijan for 10 years, as well as it does the contingent and applicable conditions. In addition, preferential social insurance contributions are established for individuals engaged in private veterinary practice; it is proposed to extend to it the subsidisation of state social insurance contributions.

It follows from the second-reading amendments to the Social Benefits Law that specialists engaged in the liberated territories of Azerbaijan are to be granted a lump-sum benefit for a period of five years as from 1 January of the year in question in accordance with Article 21-1 of the Labour Code and subject to an employment contract concluded for at least one year in the same territories of the country.

Then, the second-reading amendments to the Labour Code will introduce the notion of ‘a specialist employed in the de-occupied territories of the Republic of Azerbaijan’; such specialists would be granted benefits and privileges of certain kinds. Consequently, from 2023 onwards, those specialists are to be entitled to an additional 5 days of paid leave within 5 years regardless of the longevities of the existing principal and/or additional leaves to which they are entitled already. Furthermore, Article 159 is to be amended in connexion with the pay increases to benefits specialists working in the freed provinces for 5 years effective 1 January 2023.

The presentation by Mr Valiyev was followed by deliberations covering the agenda. The committee members Ilham Mammadov, Jala Aliyeva, Aghil Mammadov, Sevinj Huseynova and Soltan Mammadov commented on the draft laws in the 2023 Budget Parcel, underscored the appropriateness of the proposed amendments and made several remarks concerning some of the amendments’ aspects.

Himalay Mamishov and Mustafa Abbasbayli responded to the MPs’ comments and answered their questions.

The online meeting tapered to the recommendation that the draft 2023 Budget of the State Social Protection Fund, the draft 2023 Budget of the Unemployment Insurance Fund, the draft law ‘On the Living Wage in the Republic of Azerbaijan in 2023’ as well as the sets of amendments to the laws ‘On Labour Pensions’, ‘On Social Insurance’ and ‘On Social Benefits’ and to the Labour Code of the Republic of Azerbaijan should all be tabled at a plenum of the Milli Majlis for reviews in the second reading.

The Press and Public Relations Department  

The Milli Majlis