Average Salary in Azerbaijan

Table of Contents

How much does an Azerbaijani worker make?

Azerbaijani workers generally earn roughly 2,950 AZN per month. 1 AZN is equal to $1.22 in USD, so 2,950 AZN is equal to $3,503 per month.

This number does not include the value of any benefits they may get from their company.

Salary Distribution

Salary Range in Azerbaijan

Salary ranges from 750 AZN to 13,200 AZN. This range is calculated according to the person’s job position, years of experience, and educational background.

Azerbaijani citizens with higher education are paid more than those with basic education. Therefore, the difference between median incomes in cities and villages is also considered due to these factors.

For instance, if a citizen has economic expertise they are most likely to receive 13,200 AZN as salary per month which is almost double that of people who have primary or secondary education.

Median Wage

The median monthly wage is 3,010 AZN, which implies that half of the population earns less than 3,010 AZN and the other half earns more. Take note that this median pay varies depending on the company and sector.

Due to the fact that men are more likely to work in high-paying sectors, their median wage is much higher than that of women. For example, the median monthly salary for men who are working in IT or transportation was 4,900 AZN while it was only 1,800 AZN for women.

Percentiles

25% of the population earns less than 1,690 AZN whereas 75% earn more. The 25th percentile is 1,690 AZN. Everyone earning less than this amount will be part of the bottom quarter (25%) of earners.

The 50th percentile is also known as the median, which splits the population into two equal halves.

With half earning more than 1,690 AZN and half earning less, it may be that some employees receive salary hikes to increase their percentile standing–for example moving from below to above mean or median can increase social swagger at little cost other than a brief explanation to friends.

Salary percentiles are useful because they allow employers and employees to see where everyone stands in terms of compensation among other things like education level or experience.

What is the median vs average salary in terms of compensation?

The median salary is the value that splits all workers into two groups; half of them make below this number and half above. The average salary is the sum of all salaries divided by the number of people in the group. The difference between the median and average pay is significant when it comes to compensation.

Salary by Experience

How does one’s pay improve over time?

A lot of companies base their worker’s salaries on their performance. Different employees get different salaries, depending on efficiency and experience level.

Different workers have different salaries because they have different responsibilities at work or due to the difference in primary duties there may be a difference in the pay.

In Azerbaijan, an employee’s experience also makes a difference in their salary. This is because it is mainly based on the length of service and age; therefore, we can assume that an experienced worker will get higher pay than a new worker.

A person’s salary may increase with time because of either promotion, raises due to performance, or inflationary adjustments.

Salary By Education

How does schooling influence pay?

In Azerbaijan, salary depends on what kind of degree you have. If you are a construction worker who has never gone to school, then your salary might be around 8,000 AZN per month.

However, if you are an engineer who graduated from college and have a professional degree in engineering, then your starting pay would be much higher at around 50,000 AZN per month.

In Azerbaijan, the more degrees you have, the higher your salary. In general, a bachelor’s degree might get you a starting pay between 12-15,000 AZN per month while people with master’s degrees easily get starting salaries around 30 or 40 thousand AZN monthly.

A high amount of experience also matters when it comes to salary in Azerbaijan. If you have been working for a very long time and have a lot of experience under your belt then your salary might be even higher than someone who has a master’s degree but only works for 3 years.

Salary By Gender in Azerbaijan

Across all sectors, male workers in Azerbaijan earn 11% more than female employees. The average salary by gender in Azerbaijan is shown below

The percentage point is the difference in earnings divided by the male earnings, times 100 to get it as a percentage. There are many reasons that can be attributed to this pay gap between men and women including discrimination based on gender, lack of support for work/family balance, etc.

All these reasons lead to lower career growth opportunities for women which results in lower salaries over time compared to men who earn more throughout their careers.

Azerbaijani Annual Salary Increase Percentage

How much are Azerbaijani yearly salary increases? How frequently do workers receive raises?

The Azerbaijani government has mandated that the annual salary increase for all workers should not drop below 12%, which means that on average, Azerbaijani salaries should rise by 12% every year.

The Azerbaijani government also mandates specific pay raises at certain intervals for different sectors of industry and employment types. For example, Azerbaijan has increased several times the minimum monthly wage to be paid in education.

Salary increases are generally staggered across each sector, so some will receive larger increases than others while some may still remain stagnant over time.

But generally speaking, it is estimated that the average yearly pay increase in Azerbaijan ranges between 12-20%.

Annual Industry Growth Rate

Education – 6%
Construction – 9%
Manufacturing – 9%
Health Care – 5%
Information Technology and Telecommunications – 6.5%
Financial Activities – 8.5%

Booming businesses tend to provide more frequent and larger increases. There are exceptions, but in general, a company’s status is directly linked to the country’s or region’s economic situation. These values tend to fluctuate.

Average Salary Growth Rates by Experience

There are different factors that affect the average salary growth rates by experience. Experience is one of these factors because it usually affects an individual’s income.

Employees gain more experience as they work for a longer period of time, which means their salary will increase accordingly. The higher amount of education attained, the better chances there are to receive a higher income because there is a positive relationship between education and earnings.

In Azerbaijan, the average salary of more experienced employees compared to the average of less experienced employees is higher.

The tendency for education and work experience to be positively correlated with earnings means that older individuals tend to have better jobs than younger individuals, which also affects these rates.

Azerbaijan Bonus and Reward Rates

How frequently and how much are bonuses given?

Azerbaijan employees are given bonuses of around AZN 3.4 to 8 (3-8 thousand manat) once every 12 months.

Bonuses are given in the form of money that is divided into two parts; one part is paid out as a cash bonus and the other part goes towards an investment plan where the employees choose the amount they want to invest and how long they want to save (usually between 5-10 years).

Bonuses are also commonly known as “thirteenth salary” or “holiday pay”.

Bonus rates increase significantly if Azerbaijan’s economic data is strong. If Azerbaijan performs extremely well during the year, companies give more than AZN 3.4 per month, on average around AZN 15 per person.

Bonuses Types

Individualized Performance Bonuses

These are usually offered instead of the traditional yearly bonuses that are based on overall company profits. It may be because overall company profits can fluctuate.

This is especially true in these economic times where sales and consumer budgets are tight.

The downside to individualized performance bonuses is they are more difficult to calculate whether the employee does or does not reach their goal, but it is well worth it if the employees feel vested in what they are working for at the end of each year.

Company Performance-based Bonus

A performance-based bonus, or variable pay as it is often called, occurs when an employee receives a share of the net profits as an incentive for reaching predetermined business goals.

In many companies, management and non-management employees are eligible for a performance-based bonus.

The company calculates the bonus at the end of a fiscal year based on overall performance, which typically includes a combination of hard metrics such as sales volume and revenue growth, as well as softer measures such as customer satisfaction or market share.

Although to some it may just be additional money in their pocket that they may not have worked for specifically, being awarded a performance-based bonus is obviously extremely rewarding because it acknowledges the employee’s contribution towards business goals and success.

Goal-based Bonuses

Goal-based bonuses are given out by the company once an employee has achieved a specific goal. These goal-based bonuses are used to motivate and inspire the employees of a company. However, goals should not be too high, or else it will demotivate an employee.

Holiday/Year-End Bonuses

Holiday and year-end bonuses are a common form of compensation that many employers choose to give their employees. They usually consist of a single sum paid at either the holiday or year-end and sometimes both.

A typical bonus is an extra payment over and above an employee’s regular salary.

Holiday/Year-End Bonuses are often determined by job performance and company profits. Some companies use them as incentives for good work, others use bonuses as part of their overall compensation package and some see them as rewards for dedication and long service.

An additional advantage of Holiday/Year-End Bonuses is the fact that they do not have to be included in calculating income tax withholding or payroll taxes because they are not considered regular wages under federal tax law.

Bonus Rates by Job Title

What qualifies a job for large bonuses and good salaries in Azerbaijan?

Employees from different companies in Azerbaijan are entitled to receive bonuses from the company they work for based on their performance and job role.

It is beneficial to receive bonuses because it adds more to the person’s monthly salary which sometimes doubles their income.

Employees working in companies with higher profit margins receive bigger bonuses compared to employees of companies whose net profit margin is lower.

Companies determine how much an employee will get as a bonus. Usually, the criteria that qualify an employee for a good bonus and salary are based on the department they work in.

Employees who receive higher salaries also manage to get high bonuses and vice versa. There are certain positions in companies where employees receive very high and competitive salaries and good bonuses at the same time (for example managing director).

However, some small businesses do not have enough profit margins to pay their employees big bonuses every month. Employees of these small businesses sometimes receive very small monthly bonus payments or no bonus at all.

Bonuses by Seniority

Senior employees in Azerbaijan are usually more likely to be given bonuses by their companies.

The seniority of an employee is usually determined by the amount of experience they have in the company, how many years they have been with the company, and by what position they are currently holding in the company.

As is seen among most companies in Azerbaijan, employees who hold higher positions usually receive bigger bonuses than those who work in lower positions.

However, there are also some cases where an employee’s bonus depends on just how good that individual has done that year.

Seniority has always been something to look at when it comes to promotions as well as pay rates for Azerbaijani employees.

Some feel that seniority should not be used so much when it comes to promotions because there are other factors involved in promotions, such as management skills and knowledge of the company.

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Salary For Popular Jobs in Azerbaijan

Administration / Reception / Secretarial

Administrative Assistant – 1,660 AZN
Office Manager – 2,740 AZN
Receptionist – 1,190 AZN

Automotive

Mechanic – 1,120 AZN
Service Advisor – 2,120 AZN

Bank and Financial Services

Bank Teller – 1,690 AZN
Financial Analyst – 4,570 AZN
Bookkeeping Clerk – 1,650 AZN

Business / Management / Purchasing / Supply Chain / Logistics

Accounting Clerk – 1,540 AZN
Office Administrator Assistant – 2,580 AZN
Purchasing Agent – 3,150 AZN

Healthcare / Medical

Medical Assistant – 1,750 AZN
Pharmacist – 2,400 AZN
Dental Hygienist – 3,050 AZN

Customer Service

Call Center Agent – 1,430 AZN
Telemarketer – 2,170 AZN

Retail / Sales / Merchandising

Cashier – 1,870 AZN
Sales Clerk – 2,180 AZN
Real Estate Agent – 3,000 AZN

Azerbaijani Hourly Wage

Azerbaijan’s average hourly earnings are 17 AZN. In Azerbaijan, the average hourly wage is 17 AZN. The minimum wage is 343.2 AZN, and the subsistence level income is 294.5 AZN.

Most employees are entitled to 20 days of annual leave per year, which equals an average monthly pay of 42 AZN after tax deductions.

The Azerbaijani Labor Code defines working hours at a standard 40 hours per week, with a maximum of 48 hours per week (for example, this includes 12-hour shifts).

Overtime payment is 1.5 times the normal hourly rate for extra time worked on ordinary days or 2 times the hourly rate for overtime work on Sundays and holidays.

There are no provisions for compulsory overtime in Azerbaijan’s Labor Code.

Employees who have worked more than 50% of their weekly working hours are not allowed overtime.

Salary Comparison: Public vs. Private in Azerbaijan

In Azerbaijan, the public sector earns 10% more than the private sector. Azerbaijan is a country in which the public sector provides more jobs than the private sector.

Most of this difference in wages stems from increased demand for employees of the government.

The Azerbaijani economy mainly consists of retail, manufacturing, and agriculture. Many people rely upon farming for their livelihoods, while others work at factories.

However, many Azerbaijanis prefer to work in the government because it offers greater benefits and security. A study showed that 11% of men are employed by the state while only 7% are employed by businesses.

The majority of women are not employed at all or do not earn enough money to sustain themselves independently; therefore, they do not have much power over their working conditions.