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Azerbaijan is making significant strides in its economic formalization efforts, as evidenced by a substantial increase in mandatory state social insurance contributions. In 2025, these contributions soared to an impressive 6.45 billion manats (approximately $3.79 billion USD).
This remarkable growth isn’t just a number; it reflects a broader positive trend within the Azerbaijani economy. According to data released by the State Tax Service under the Ministry of Economy, this surge is primarily attributed to the ongoing and successful formalization of employment and wage funds across the country.
The formalization process aims to bring more workers and economic activities into the official economy, ensuring fair wages, proper taxation, and, crucially, robust social safety nets. When more employment is formalized, more contributions are made to state social insurance, which in turn strengthens support for pensions, healthcare, and other vital social programs.
This increase underscores the government’s commitment to creating a transparent and equitable labor market, benefiting both employees through greater security and the state through enhanced revenue for social development. It’s a clear indicator that Azerbaijan’s strategic initiatives to improve economic oversight and worker protection are yielding tangible and impactful results.
Source: Original Article
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