Jabbarov: Non-oil private sector wage fund to hit AZN10.6B by end of 2025

By the end of 2025, the wage fund in Azerbaijan's non-oil private sector is expected to triple compared to 2019, reaching 10.6 billion manats (over $6.2 billion), Azerbaijani Economy Minister Mikayil Jabbarov said, Report informs.

Jabbarov shared this insight during today's session of the Committee for Economic Policy, Industries and Enterprising of Azerbaijan's Milli Majlis, held to discuss the draft law on the State Budget for 2026.

The minister stated that as a result of income tax exemptions for salaries up to 8,000 manats ($4,706) in the non-oil private sector, the number of employment contracts in this segment increased by 471,000 between January 1, 2019, and October 1, 2025, surpassing 1 million.

"The sector's share of total employment contracts rose from 38.5% to 54.1%. Based on projections for 2025, the wage fund in the non-oil private sector is expected to triple to 10.6 billion manats, while mandatory social insurance contributions are forecasted to reach 2.5 billion manats ($1.47 billion)-also a threefold increase," Jabbarov noted.

He added that during this period, the share of budget allocations in the revenues of the State Social Protection Fund decreased from 35% in 2018–2024 to 16–17%, and is expected to drop further to 10.5%.

Jabbarov also mentioned that the income tax exemption will expire on January 1, 2026. He emphasized that the policy has achieved its key socio-economic goals and led to significant progress in formalizing the labor market:

"To preserve and build on these achievements, and to continue the legalization process, proposals have been submitted to gradually and systematically apply taxation to operations in the non-oil private sector, while maintaining a lower tax burden for lower-income groups."