Azerbaijan starts 2023 with social reforms From students to pensioners

A week ago, President Ilham Aliyev's decree "On additional measures to improve the social well-being of the population" raised the level of minimum wages and pensions for more than 700,000 citizens of the republic. On January 13, another decree of the Head of State launched a new package of social reforms covering a total of 660 thousand people. They include university students, students of secondary and vocational schools, doctoral students, as well as war veterans, disabled people, Martyrs' families, multiple children mothers, etc. Other types of social benefits and one-off payments have also been increased.

Due to the current grave geopolitical conflicts and the energy, food, and logistics crises, humanity is experiencing far worse times. Inflation, which has been increasing rapidly for more than a year, is especially felt in the poorest countries of the world, although this downward trend is also observed in the relatively prosperous countries of Europe, North America, Asia, and, of course, in the post-Soviet space. Unfortunately, the attempts of the world's leading central banks to curb the growth of consumer prices by raising the interest rates and tightening monetary policy are turning into new problems, in particular, a global recession predicted for 2023, which will certainly lead to lower production and a decline in world GDP.

These global problems are to some extent perceptible in Azerbaijan as well, owing to the country's deep integration into the global economy. However, our country has managed to avoid famine, prevent monetary inflation, and maintain the stability of the banking system and other financial institutions, i.e. in general the past year has passed without serious shocks. Moreover, in the energy, industrial and agricultural sectors, production and exports have increased sharply, freight rates are growing, etc. The positive dynamics in the economy became a driving force for the government to implement a set of effective macroeconomic and social measures to protect the population from external challenges and mitigate their consequences.

Ensuring the well-being of citizens and their social protection has always been and remains at the centre of the President's attention as an integral part of the country's successful socio-economic policy. The new package of social reforms initiated by the head of state in the first days of the new year is clear proof of this: the minimum pension and wages were increased, and then, on January 13, by presidential decree and orders, benefits for socially vulnerable groups, students, veterans and other categories of citizens were increased.

According to the Ministry of Labour and Social Protection of Azerbaijan, in general, the steps taken on the initiative of the Head of State to increase various social benefits will cover a total of 660,000 people. A total of 1.9 million people are expected to receive an increase in social benefits in 2023 as a result of the implementation of a new package of social reforms, for which additional 750 million manats of budgetary funds are provided during the year.

Various benefits with different options for various categories of citizens have been increased for almost a dozen and a half positions. In particular, about 150,000 students of universities and other educational institutions, doctoral students will be increased from January 1, 2023. Thus, depending on the score the scholarships for bachelor students will range from 100 to 175 manat, for master students and students of the National Academy of Sciences of Azerbaijan - from 110 to 195 manat, for Ph.D. candidates up to 440 manat, and 240 manats for Ph.D. students. The size of the Presidential Stipend for students of universities rose up to 275 manats. Also, the payment (according to the level of grades) has increased from 66 to 100 manats for students of secondary and vocational educational institutions as well.

The amount of monthly stipend for honorary titles (people's) in the field of literature, theatre, and other areas of the arts was also increased to 200 manats. Corresponding payments to honorary figures in the field of science, education, medicine, journalism, sports, jurisprudence, civil servants, and a number of other categories rose to 150 manats. The presidential pension assigned to people who have worked not less than 25 years in scientific and educational institutions was also increased and depending on academic degree these payments will make 300 and 500 manats.

Significant growth was provided in the segment of social benefits for socially vulnerable people, large families, payments for Martyrs' families, disabled people, veterans, etc. The presidential pension was raised to 600 manats by Presidential Decree for families of Martyrs and disabled people who died in the January 20, 1990 events, and the monthly presidential pension for participants of the Great Patriotic War of 1941-1945 rose to 330 manats. For disabled veterans of the war for the independence and territorial integrity of Azerbaijan, pensions were increased from 330 to 500 manats, depending on the degree of impairment of body functions.

In general, other social benefits for persons with disabilities have also increased: for people with category I, II, and III disabilities the benefits have increased by 150, 220, and 270 manats respectively, and for citizens with visual impairments of the first degree the monthly pension amounted to 300 manats. In turn, the monthly allowance to persons caring for persons with disabilities under 18 years old was increased to 100 manats. Annual payments for treatment of persons who suffered from radiation (liquidators of the Chornobyl accident) have also been increased - the updated amount is 300 manat.

The year 2023 brought also a noticeable increase for large and socially vulnerable families: the new level of allowance to poor families with a child under the age of one year, has reached 100 manats, the growth made almost by half, and social payment for the birth of a child rose by 66,7% up to 500 manats. Allowance for mothers with many children (more than 5 children) increased from 70 to 105 manats per child, thus 50% growth was ensured. The amount of social allowance for the loss of a breadwinner was increased by 20% up to 120 manats (for each family member), and old age allowance from January 1 of this year will make 220 manats, having increased by 22.2% as compared to the previous indicator. The amount of lump-sum payments for socially vulnerable categories of the population has also increased noticeably, in particular, the funeral benefit has increased by almost 43% up to 500 manats.

"More than 800,000 citizens will feel the positive effect in connection with the decree and orders signed by President Ilham Aliyev on the increase of allowances and pensions, and also increase of salaries of employees of some organizations financed from the state budget by 15%," Deputy Minister of Labour and Social Protection Anar Kerimov said at a briefing at the relevant agency held on January 15.

According to the Deputy Minister, four packages of social reforms have been implemented in the republic for the last five years, and each time these important steps involved not only an increase in minimum pensions and salaries but also an enhancement of social payments. And the next steps taken on January 13, 2023, on the initiative of the Head of State will be an effective way to improve social protection and help vulnerable categories of the population to reduce the impact of inflation and other global negative factors.