Self-em­ploy­ment pro­gram to cover around 35,000 peo­ple

Azer News - - Business - By Sara Is­rafil­bay­ova

The self-em­ploy­ment pro­gram will cover about 35,000 peo­ple in 2018. Min­is­ter of La­bor and So­cial Pro­tec­tion Salim Mus­lu­mov wrote in his ar­ti­cle pub­lished in “Azer­bai­jan” news­pa­per that the self-em­ploy­ment pro­gram is im­ple­mented upon Pres­i­dent Il­ham Aliyev’s de­cree “On ad­di­tional mea­sures of en­sur­ing self-em­ploy­ment of the pop­u­la­tion” dated April 7, 2016.

As part of these mea­sures, the Min­istry pro­vides low-in­come fam­i­lies with var­i­ous as­sets (goods, ma­te­ri­als, live­stock) to launch small busi­ness.

The min­is­ter added that 1,232 fam­i­lies have be­come the ben­e­fi­cia­ries of the pro­gram this year.

There will be a new source of fund­ing for the self-em­ploy­ment pro­gram in 2018 due to the law “On un­em­ploy­ment in­sur­ance”. As a re­sult, the pro­gram cov­er­age will be ex­panded.

Pres­i­dent Aliyev signed a de­cree on ap­pli­ca­tion of the law “On 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 min­is­ter added that the cre­ation of a new fi­nan­cial source will make it pos­si­ble to in­crease ex­penses for fi­nanc­ing the em­ploy­ment sphere by 3.2 times.

“Thus, 37.6 per­cent or 33.5 mil­lion man­ats ($19.70 mil­lion) out of 89 mil­lion man­ats ($52.35 mil­lion), which is planned to be col­lected next year in the un­em­ploy­ment in­sur­ance fund, will be di­rected to un­em­ploy­ment in­sur­ance pay­ments, 40.2 per­cent or 35.8 mil­lion man­ats ($21.06 mil­lion) - to ex­pand the self­em­ploy­ment pro­gram, that is, in ad­di­tion, al­most 7,000 fam­i­lies will be cov­ered by this pro­gram,” he said.

“If we take into ac­count that fam­i­lies par­tic­i­pat­ing in the pro­gram con­sist of 4-5 peo­ple, we can as­sume that the liv­ing con­di­tions of 5,000-6,000 peo­ple have im­proved this year,” the min­is­ter said. “This fig­ure will reach 30,000-35,000 peo­ple in 2018.”

En­cour­ag­ing self-em­ploy­ment has been de­ter­mined as a per­spec­tive busi­ness task in Azer­bai­jan and the gov­ern­ment does its best to cre­ate con­di­tions and op­por­tu­ni­ties to sup­ports en­trepreneur­ship in the coun­try.

Thus, 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.

Un­em­ploy­ment rate in Azer­bai­jan is 5 per­cent, while the poverty level equals to 5.3 per­cent.

More­over, the min­is­ter in his ar­ti­cle stressed that from Jan­uary 1, 2006 to Oc­to­ber 1, 2017, the av­er­age monthly amount of la­bor pen­sions had in­creased 6.8-fold and reached 204 man­ats, the av­er­age monthly amount of la­bor pen­sions by age in­creased 7.7 times to 228 man­ats ($134).

Fur­ther, Mus­lu­mov noted that for 11 months of 2017, the nom­i­nal in­come of the pop­u­la­tion in­creased by 8.2 per­cent and reached 43.4 bil­lion man­ats ($25.53 bil­lion). The per capita in­come in­creased by 7.2 per­cent and amounted to 4,459 man­ats ($2,622).

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