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In which cases can an amount lower than the tariff (position-based) salary be determined in the EMAS system?
In which cases can an amount lower than the tariff (position-based) salary be determined in the EMAS system?
According to Article 157 of the Labor Code, wages consist of a monthly tariff (position-based) salary, allowances, and bonuses. The same article also clarifies the concepts of the tariff (position-based) salary, wage allowances, and bonuses. The issue is explained by expert Anar Bayramov:
“The tariff (position-based) salary is the main part of wages determined based on the complexity of the work, the intensity of labor, and the employee’s level of qualification.
A wage allowance is an additional payment added to the employee’s tariff (position-based) salary or wages for the purpose of compensation or encouragement related to working conditions.
A bonus is an incentive monetary payment provided in the manner and form предусмотрed by the wage system in order to increase the employee’s material interest in improving the quantity and quality of work.”
First, let us clarify the issues related to indicating the tariff (position-based) salary in the Labor and Employment Subsystem (ƏMAS). Part 3 of Article 155 of the Labor Code states that the monthly wage of an employee who has worked the established monthly working time norm and fulfilled their labor function may not be lower than the minimum wage established by the state.
For information purposes, it should be noted that as of January 1, 2025, the minimum wage in Azerbaijan is 400 manats. The requirements related to the minimum wage are also observed in the ƏMAS subsystem.
Example 1: When an employer creates a position and records it as full-time but wishes to set the employee’s wage below the minimum wage (400 manats), the software will not accept a wage lower than 400 manats and will display a notification indicating that the wage must be at least equal to the minimum wage.
Example 2: An employer hires an employee for an additional (secondary) workplace for a position created as full-time. In this case, since the employee’s workplace is recorded as an additional workplace, the system does not apply any restrictions in the tariff (position-based) salary section. The employer may set a wage below the minimum wage.
Example 3: When creating a staff position, the employer selects not “Full-time” but “Others (3/4, 1/2, etc.).” When hiring an employee for the primary workplace, since the staff unit is not indicated as full-time, the ƏMAS subsystem does not impose a minimum wage requirement.
But is it possible to apply part-time working hours to a full-time position and pay an amount below the minimum wage?
One of the most common situations in practice is when an employer selects “Full-time” in the “Staff information” section while creating a staff unit but does not want to establish a full working time norm for the employee being hired.
Example 4: An employer hires an employee for the sales manager position created as full-time. According to the terms of the employment contract, the employee’s daily working time is set at 5 hours. In the employment contract notification in ƏMAS, it is indicated that the employee is hired at the primary workplace. The employer, citing that the employee will not work the full monthly working time norm, sets the wage at 250 manats instead of 400 manats.
The ƏMAS subsystem, taking into account that the employee’s workplace is the primary one and the staff position is full-time, will not allow the wage to be set below the minimum wage, i.e., 250 manats. Although this situation is possible from the perspective of labor legislation, the ƏMAS subsystem applies a restriction. As a solution, the employer should cancel the vacant sales manager position created as full-time and create a new staff position at 3/4, 1/2, or 1/4 in accordance with the employee’s working hours.
According to Article 157 of the Labor Code, wages consist of a monthly tariff (position-based) salary, allowances, and bonuses. The same article also clarifies the concepts of the tariff (position-based) salary, wage allowances, and bonuses. The issue is explained by expert Anar Bayramov:
“The tariff (position-based) salary is the main part of wages determined based on the complexity of the work, the intensity of labor, and the employee’s level of qualification.
A wage allowance is an additional payment added to the employee’s tariff (position-based) salary or wages for the purpose of compensation or encouragement related to working conditions.
A bonus is an incentive monetary payment provided in the manner and form предусмотрed by the wage system in order to increase the employee’s material interest in improving the quantity and quality of work.”
First, let us clarify the issues related to indicating the tariff (position-based) salary in the Labor and Employment Subsystem (ƏMAS). Part 3 of Article 155 of the Labor Code states that the monthly wage of an employee who has worked the established monthly working time norm and fulfilled their labor function may not be lower than the minimum wage established by the state.
For information purposes, it should be noted that as of January 1, 2025, the minimum wage in Azerbaijan is 400 manats. The requirements related to the minimum wage are also observed in the ƏMAS subsystem.
Example 1: When an employer creates a position and records it as full-time but wishes to set the employee’s wage below the minimum wage (400 manats), the software will not accept a wage lower than 400 manats and will display a notification indicating that the wage must be at least equal to the minimum wage.
Example 2: An employer hires an employee for an additional (secondary) workplace for a position created as full-time. In this case, since the employee’s workplace is recorded as an additional workplace, the system does not apply any restrictions in the tariff (position-based) salary section. The employer may set a wage below the minimum wage.
Example 3: When creating a staff position, the employer selects not “Full-time” but “Others (3/4, 1/2, etc.).” When hiring an employee for the primary workplace, since the staff unit is not indicated as full-time, the ƏMAS subsystem does not impose a minimum wage requirement.
But is it possible to apply part-time working hours to a full-time position and pay an amount below the minimum wage?
One of the most common situations in practice is when an employer selects “Full-time” in the “Staff information” section while creating a staff unit but does not want to establish a full working time norm for the employee being hired.
Example 4: An employer hires an employee for the sales manager position created as full-time. According to the terms of the employment contract, the employee’s daily working time is set at 5 hours. In the employment contract notification in ƏMAS, it is indicated that the employee is hired at the primary workplace. The employer, citing that the employee will not work the full monthly working time norm, sets the wage at 250 manats instead of 400 manats.
The ƏMAS subsystem, taking into account that the employee’s workplace is the primary one and the staff position is full-time, will not allow the wage to be set below the minimum wage, i.e., 250 manats. Although this situation is possible from the perspective of labor legislation, the ƏMAS subsystem applies a restriction. As a solution, the employer should cancel the vacant sales manager position created as full-time and create a new staff position at 3/4, 1/2, or 1/4 in accordance with the employee’s working hours.