Azerbaijan has proposed raising the subsistence minimum and needs-based criterion from 300 to 314 manats in 2027. For a four-person family, the calculated needs threshold would rise by 56 manats a month to 1,256 manats.
The figures are included in draft legislation for next year. They are proposed parameters and have not yet taken effect.
How the Assistance Calculation Changes
The needs-based criterion is used to determine targeted state social assistance. In a simplified example, the calculated benefit is the difference between a family’s combined needs threshold and the monthly income counted under the program.
If a family has four members and 800 manats in countable monthly income, the current threshold produces a difference of 400 manats: 300 × 4 − 800.
If the 314-manat criterion is approved, the difference would be 456 manats: 314 × 4 − 800. Khazar Khabar used the same illustration.
This is a conditional calculation. Eligibility depends on the program’s requirements and the assessment of family income. A 314-manat threshold does not mean every citizen will receive that amount.
Subsistence Minimums Differ by Group
The proposed 2027 amounts are 334 manats for the working-age population, 258 manats for pensioners and 274 manats for children. The general national figure would be 314 manats.
The subsistence minimum describes minimum consumer needs, while the needs-based criterion is used to calculate social assistance. Although the proposed nationwide values are equal, the indicators serve different purposes.
Raising the threshold increases the calculated gap between family needs and income. Its effect on purchasing power will also depend on future price changes.
Source: Vesti Baku.