Economic measures to combat informal employment in Azerbaijan
The Azerbaijani State Social Protection Fund has tightened combat with informal employment, the fund's chairman Salim Muslimov told reporters on Friday.
"There are administrative and economic ways of dealing with the avoidance of employers to register employees and wages," Muslimov said.
According to the official, the fund has proposed changes to the legislation as an economic method for resolving this problem.
"The fund has proposed changes to the law on social insurance, which provide for implementation of a minimum level requirement ratio of payroll to sales in various areas of the economy. And depending on this level, the minimum amount of contributions for mandatory state social insurance paid by employers can be calculated," Muslimov said.
Such experience has been successfully introduced in various countries, such as Turkey, he stressed.
"The implementation of this method in Azerbaijan will intensify employee registration and the legalization of workers wages," Muslimov said.
Roughly 25 percent of wages in Azerbaijan are directed toward social security payments.
The total number of those insured in the fund and having individual accounts is over 2.1 million.