Taking into account that the discussions on the increase of the minimum wage will end by November, it is expected that the specific figure will be known that month. As can be seen from the official statement, now is the stage of discussions. In this regard, the specific growth percentage has not been announced yet.
Publika.az the economist reports Vugar Bayramov he said while commenting on questions about how much the minimum wage should be increased.
According to him, when the minimum wage is increased, the experience of previous periods will be taken into account:
“The minimum wage was last increased in January 2023 to 345 manats. In general, the minimum wage has been increased 2.7 times in the last 5 years. In this regard, two criteria can be used for a new increase in the minimum wage: the inflation rate recorded in the previous period or the percentage increase in the nominal average monthly wage in that period. Given that the minimum wage was last increased in January 2023, it is important to pay attention to price increases for the past and this year. In 2023, the inflation rate was 8.8 percent, and the average monthly wage growth rate was 11.3 percent. This year’s results will be confirmed by the end of 2024.”
The economist said that in 2024, both price increases and changes in the nominal average monthly salary were recorded:
“In this regard, when viewed cumulatively, we should be talking about higher numbers. This means that taking into account the average sum of the criteria for 2023 and 2024, a higher increase in the minimum wage may be realized. That is, in this case, we are talking about a double-digit growth. It will be possible to say in the autumn months what percentage the double-digit percentage will be expressed in concrete. Of course, a more accurate number will be known after the official proposals are presented. However, considering that the increase in the minimum wage will cover more than 700,000 of our citizens, it is not difficult to imagine the importance of the increase percentage.
It should be noted that the Ministry of Labor and Social Protection of the Population said that it will prepare proposals for increasing the minimum wage by November 1.
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