AZE.US
The debate over weekly salary payments in Azerbaijan has returned from time to time, but one lawmaker says the country’s more urgent problem is not the payment schedule. It is the size of the wage itself.
Azerbaijani MP Ali Masimli, a member of parliament’s Committee on Economic Policy, Industry and Entrepreneurship, said workers are less concerned about whether salaries are paid weekly, twice a month or monthly than about whether those salaries are enough to live on.
Speaking to Modern.az, Masimli said different payment models are used in different countries, depending on the sector and labor market practices.
He noted that weekly salary payments are common in countries such as the United States, Britain and Canada. In the United States, he said, nearly 30 percent of private companies use weekly pay, especially in construction, retail and services.
For low-income workers, Masimli said, weekly pay can offer a practical advantage because employees receive earned income sooner and can manage daily expenses more easily.
But the system also has drawbacks.
Monthly obligations such as rent, mortgages and insurance can become harder to manage under a weekly payment model, he said. Weekly payroll calculations also create additional accounting and administrative costs for employers.
Masimli said Azerbaijan’s main issue is different: whether wages match the real cost of living.
The minimum monthly wage in Azerbaijan is currently 400 manats, a level he said is not enough to meet citizens’ basic needs.
Masimli also referred to the European Social Charter, which Azerbaijan has joined. Under that approach, he said, the minimum wage should not fall below 60 percent of the average wage.
“Based on this calculation, the minimum wage in Azerbaijan should be above 660 manats,” Masimli said.
He added that the country also needs to raise the median wage, not only the minimum wage.
Although the average monthly salary in Azerbaijan is 1,152 manats, the median wage is much lower, he said. The median figure, Masimli argued, gives a more accurate picture of the real social condition of most workers.
The lawmaker said work is also underway in Azerbaijan on a possible transition toward hourly pay. Legislative changes may eventually be introduced to establish a minimum hourly wage.
AZE.US