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5 key points about the implementation of minimum hourly wage
5 key points about the implementation of minimum hourly wage
Experts have clarified several important points regarding the introduction of a minimum hourly wage.
First point. The introduction of a minimum hourly wage will not affect the current salaries of existing employees. Employers will apply the minimum hourly wage only to newly signed employment contracts that meet certain criteria.
Second point. Just as the Labor Code currently prohibits paying employees less than the minimum wage, under the proposed amendment, employers will not be authorized to set an hourly wage below the legally established minimum hourly wage.
Third point. The minimum hourly wage is intended to apply to individuals employed under short-term contracts (initially proposed as up to one month) and whose weekly working hours are less than 20 hours. For example, if an employer hires an employee on a full-time basis, the minimum monthly wage requirements, rather than the hourly ones, must be taken into account.
Fourth point. The draft proposal stipulates that the minimum hourly wage amount should be higher than the current average hourly rate. According to the 2025 production calendar, the working hour norm for May 2025 is set at 158 hours. Given that the minimum monthly wage will be 400 manats as of January 1, 2025, the minimum hourly wage for a full-time employee cannot be set lower than 2.53 manats (400 manats / 158 hours). Under the proposed amendments to the Labor Code, the minimum hourly wage must be determined at a higher amount regardless of the monthly working hour norm.
Fifth point. Employees working under a labor contract with a minimum hourly wage will be entitled to the same rights as other employees, including paid leave, wage coefficients based on working conditions, and additional payments for night shifts, overtime work, and work on public holidays — all regulated in accordance with existing labor legislation.
Experts have clarified several important points regarding the introduction of a minimum hourly wage.
First point. The introduction of a minimum hourly wage will not affect the current salaries of existing employees. Employers will apply the minimum hourly wage only to newly signed employment contracts that meet certain criteria.
Second point. Just as the Labor Code currently prohibits paying employees less than the minimum wage, under the proposed amendment, employers will not be authorized to set an hourly wage below the legally established minimum hourly wage.
Third point. The minimum hourly wage is intended to apply to individuals employed under short-term contracts (initially proposed as up to one month) and whose weekly working hours are less than 20 hours. For example, if an employer hires an employee on a full-time basis, the minimum monthly wage requirements, rather than the hourly ones, must be taken into account.
Fourth point. The draft proposal stipulates that the minimum hourly wage amount should be higher than the current average hourly rate. According to the 2025 production calendar, the working hour norm for May 2025 is set at 158 hours. Given that the minimum monthly wage will be 400 manats as of January 1, 2025, the minimum hourly wage for a full-time employee cannot be set lower than 2.53 manats (400 manats / 158 hours). Under the proposed amendments to the Labor Code, the minimum hourly wage must be determined at a higher amount regardless of the monthly working hour norm.
Fifth point. Employees working under a labor contract with a minimum hourly wage will be entitled to the same rights as other employees, including paid leave, wage coefficients based on working conditions, and additional payments for night shifts, overtime work, and work on public holidays — all regulated in accordance with existing labor legislation.