Azerbaijan is considering an electronic system that would compare the salary stated in an employment contract with the amount actually paid to a worker.
The proposed mechanism is intended to identify delayed wages, partial payments and cases in which part of an employee’s income is concealed, according to Vesti Baku.
The package of amendments was discussed on Nov. 11 by the Milli Majlis Committee on Labor and Social Policy. Salary payments would be made through an electronic system designated by the Central Bank and transferred to a bank account chosen by the employee.
Payment and payroll data would be compared with information in the centralized system of the Ministry of Labor and Social Protection. The arrangement would allow authorities to identify differences between officially declared and actually paid wages.
The system would also be used to calculate average earnings automatically for annual leave and temporary disability payments.
Hourly Minimum Wage Planned From 2027
The authorities are also considering a phased introduction of a minimum hourly wage beginning in 2027. Agricultural production and food-service businesses are expected to be included in the first stage.
Hourly pay rules would apply to employment contracts lasting less than one month and to jobs involving no more than 20 hours a week.
The minimum hourly rate would have to exceed the figure produced by simply dividing the existing monthly minimum wage by standard working hours.
Officials also propose simplifying employment contracts for these workers. The form of the contract would depend on the length of employment, while short-term work and schedules of less than four hours a day would need to specify the applicable hourly arrangement.
The proposals do not mean the new system is already in effect. The changes require legislative approval and implementing regulations, including decisions on the sectors covered and the minimum hourly rate.