By Azernews

By Ofeliya Afandiyeva

The Azerbaijani Parliament approved 2020 State Budget in its third and last reading on November 29.

Under the approved bill "On state budget of the Republic of Azerbaijan for 2020", the revenues and expenses of the consolidated budget for 2020 are envisaged at over $16.2 billion and over $17.4 billion respectively.

Under the bill, the amount of social spending in 2020 will amount to $6.2 billion, which is $1.7 billion or 37 percent higher compared to 2019.

Unemployment Insurance Fund

Incomes and expenditures for 2020 of the Unemployment Insurance Fund under the Azerbaijani Ministry of Labor and Social Protection of the Population have been projected at $75.5 million.

In 2020, $65.9 million will be provided through unemployment insurance premiums, 10.4 million from organizations financed from the budget, $44,914 from the extra-budgetary sector and $17,682 from other sources.

Thus, in 2020, funds in the amount of $2.9 million will be provided for insurance payments - $2.9 million for vocational training and organization of additional training, $1.1 million for provision of consulting services in the field of vocational education, $294,723 for organization of labor fairs and labor stock exchanges, $1.1 million for organization of paid public work, $37.5 million for organization of events for self-employment, $1.7 million for financing of a certain part of the salary of insured persons for a certain period (3, 6, 9, 12 months), $1.1 million for the preparation of professional standards, $25.3 million expenditure for the fund’s office and its local structures defined by the relevant executive authorities.

Subsistence minimum

The parliament also approved the Law “On subsistence minimum for 2020”, setting the subsistence minimum for 2020 at $111.9. The subsistence minimum will be $118.4 for the able-bodied population, $92.5 for pensioners and $100.2 for children.

Additionally, the parliament approved the Law “On the limit of the need criterion for 2020”.

According to the document, the limit of the need criterion for 2020 for the appointment of targeted state social assistance has been set at $94.3.

Medical insurance

The amendments to the Law "On Medical Insurance" related to the implementation of compulsory medical insurance in Azerbaijan were also approved during the parliament’s session.

In accordance with the amendments, the insurance premiums for compulsory medical insurance were set in the following amount:

- 1 percent of the amount up to $4,715 from the wage fund ($4,715 including) in 2020, 2 percent from 2021 for the insurers not involved in the oil and gas sector and employed in the private sector by using a coefficient of 0.5 percent to a part exceeding $4,715 of an employee’s salary;

- 1 percent of the amount up to $4,715 of a salary ($4,715) in 2020, two percent from 2021 for the insured people not involved in the oil and gas sector and employed in the private sector by using a coefficient of 0.5 percent to a part exceeding $4,715 of an employee’s salary;

- 2 percent of the amount up to $4,715 from the wage fund for the insurers involved in the oil and gas sector and employed in the public sector by using a coefficient of 0.5 percent to a part exceeding $4,715 (including $4,715);

- 2 percent of the amount up to $4,715 of the salary for the insured people involved in the oil and gas sector and employed in the public sector by using a coefficient of 0.5 percent to the part exceeding $4,715 of the employee’s salary.

According to the relevant article of the Law, premiums for policyholders envisaged by article 15-2.3 of this law have been set in the amount of $53 per person annually, and for the insured people envisaged by article 15-2.3.4 - 4 percent of the minimum monthly wage.

The premiums for the insured people have been set at 2 percent of the part of income up to $4,715 and 1 percent of the part of income exceeding $4,715.

From 2023, the insurance premiums for the insured people have been appointed at 48 percent of the minimum wage.

Note that draft laws are usually reviewed in three readings according to the internal Charter of Azerbaijani Parliament.