TODAY.AZ / Politics

Parliament launches discussions on compulsory unemployment insurance

12 May 2017 [17:25] - TODAY.AZ

By Azernews


By Sara Israfilbayova

Milli Majlis [Parliament] of Azerbaijan has launched discussions on the draft law “On unemployment insurance.”

Under the bill, which was considered at a meeting of the Parliamentary Committee on Labor and Social Policy on May 12, the main principles of unemployment insurance will be obligatoriness, legal equality of unemployment insurance subjects, differentiation of insurance payments depending on the length of insurance and duration of unemployment.

The insurance premium will be equal to 1 percent of the amount of the insured's salary, of which half will be paid by the employer and the other half by the employee, in accordance with the draft law. This is the lowest figure in the world, as in some countries the contribution is up to 3-5 percent of wages.

Monthly contributions must be paid by the insured at the same time as monthly wages paid, but not later than the 15th day of the next month.

The amount of payments will be differentiated depending on the length of service and time spent without work. If the insured's work experience is more than 10 years, the payment will be equal to 65 percent of the salary that he received during the last 12 months, if the experience is less than 3 years, the insurance payment will be minimal.

The payment is scheduled for 6 months. If during this time the insured has not found work, then the payments are extended for 3 months, and the amount of payment is reduced every month to the minimum level.

More than 26,700 people got new jobs in the first quarter of 2017. Unemployment rate in Azerbaijan is 5 percent, while the poverty level equals to 5.3 percent.

URL: http://www.today.az/news/politics/161083.html

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