Azernews.Az

By Sara Israfilbayova

Self employment is becoming a viable alternative for more people, as over 850 people already fully benefited the recently launched self-employment program in Azerbaijan.

Deputy Minister of Labor and Social Protection of Population Matin Karimli said that the state provided over 856 people with assets, while overall 1,385 people have joined this program.

"The process of providing the individuals with assets has started since February. 856 people from 47 regions already received assets, and in some 24 regions, assets have been partially distributed," Karimli said at a press conference on August 8.

Based on the assessment - the purpose, structure and content of the business plan, the relevant commission under the Ministry of Labor and Social Protection of the Population provides the applicants with goods and materials, helping them to create and manage family business. Only those who are able to justify their business plan benefit the program.

Encouraging self-employment has been determined as a perspective business task in Azerbaijan.

In September 2016, “Simplified support to family business” (ABAD) under the State Agency for Public Service and Social Innovations operating under the President of the Republic of Azerbaijan (ASAN) was created in order to support the active participation of citizens in the social and economic development of Azerbaijan, the development of small and medium-sized enterprises (SME), increase of employment of the population.

Deputy Minister Idris Isayev, in turn, said that entrepreneurs working on an individual basis will not be able to receive benefits in the framework of compulsory unemployment insurance, because allocations for this type of insurance must be paid by both the employee and the employer.

He said that it does not mean that individual entrepreneurs will not be able to actively participate in the employment process, adding that they will be able to register to refresher courses and look for new potential jobs.

He added that allocations for compulsory unemployment insurance will be accumulated in the State Social Protection Fund (SSPF) under the Ministry of Labor and Social Protection of the Population of Azerbaijan.

"Monthly allocations must be paid by the employer at the same time as payment of wages, and transferred no later than the 15th of the next month to the SSPF, where these funds will be accumulated," the deputy minister said.

President Ilham Aliyev signed a decree on application of the law "On compulsory unemployment insurance,” on August 7.

The insurance premiums on the part of the insured make up 0.5 percent of the salary, insurance premiums on the part of the insurer will be 0.5 percent of the calculated wage fund, in accordance with the law.

Calculation of the monthly insurance payment is made as follows: 50 percent of the lost monthly salary with labor experience of 3 to 5 years; 55 percent of the lost monthly salary - with labor experience of 5 to 10 years; 60 percent of the lost monthly salary with labor experience of over 10 years.

Under the law, those whose labor contracts were terminated because of the liquidation of the employer (legal entity) or because of mass reduction will be entitled to receive unemployment insurance.

The law will come into force on January 1, 2018.

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