Azerbaijan - Living Wages, August 2017. Per Month in AZN

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator calculates Living Wage for around 50 countries based on prices collected within the WageIndicator Cost of Living Survey. The Living Wage calculated by WageIndicator is composed of seven parts: food, housing, transport, health, education, tax and other costs.

WageIndicator presents Living Wages for several household types and working hours to respond to different demands for living wage information: Typical family Living Wage is a baseline estimate that respects the country specific conditions. Family includes two adults and the number of children is given by country specific fertility rate (2 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (72% in 2017). Standard family Living Wage is estimated for a family composed of two adults and two children. One parent is employed full-time and the second parent works 4 days a week it means family employment rate is 1.8. Single-adult Living Wage represents an acceptable standard of living for a single individual working full-time with no dependents.

Expenditure and Living Wage calculation (monthly rates in AZN)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 225 330 224 332 56 83
Housing 350 640 350 640 200 225
Transport 12 20 12 20 6 10
Health 50 100 50 100 13 25
Education 50 200 50 200 0 0
Other costs 34 65 34 65 14 17
Total Expenditure 721 1355 720 1357 289 360
Net Living Wage 424 797 400 754 289 360
Gross Living Wage 505 949 476 897 343 428

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in AZN)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of common household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 2 children, 1.7 working) 505 950
Standard family (two parents + 2 children, 1.8 working) 475 895
Two parents and two children, 2 working 430 805
Two parents and two children, 1.5 working 570 1080
Two parents and two children, 1 working 855 1620
Two parents and three children, 1.7 working 545 1010
Two parents and four children, 1.7 working 585 1070
Single-adult without children, 1 working 345 430

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in AZN)

Living Wages are presented in context with other wage indicators including minimum wage, poverty line, and various prevailing wages of workers. Table shows the development of income levels over two years.

7-12/20151-6/20167-12/20161-6/2017
  from to from to from to from to
Minimum wage 105 . 105 . 105 . 105 .
Living Wage - Typical Family . . . . 510 910 505 950
Living Wage - Single Adult . . . . 340 395 345 430
Real wage of low-skilled worker 285 415 255 445 230 415 220 370
Real wage of medium-skilled worker 385 580 375 610 380 605 410 610
Real wage of high-skilled worker 350 560 350 595 355 580 395 620

Note: Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web surveys on work and wages over the last 36 months. Results in the table are rounded.



Living Wage model diet and food prices in AZN

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo fromto
Wheat, barley and cereals 439 1201 .6 .8
Rice 4 15 .9 1
Meat (beef, pork, poultry) 65 126 3.8 7
Oils (soyabean, olive, palm) 3 29 . .
Sugar (Raw Equivalent) 34 127 1.1 1.2
Maize and products 26 71 .4 .4
Milk - Excluding Butter 299 169 1 1.2
Vegetables, Other 201 41 1 2
Potatoes and products 145 97 1 1
Butter, Ghee 6 47 6 7
Groundnuts (Shelled Eq) 7 21 8 8
Pulses, Other and products 0 0 3 3.2
Egg (price per 10 eggs) 16 22 20 1.2
Sunflowerseed Oil 3 23 . .
Fish products 4 3 4 4
Beer 109 53 2 4.8
Sweeteners, Other 2 4 1.1 1.2
Beans 2 6 2 2
Bananas 2 1 2 2.5
Apples and products 28 13 .5 .8
Tomatoes and products 95 17 2 2
Onions 32 10 .6 .7
Oranges, Mandarines 8 2 1.5 2
Roots, Other 0 0 .9 1
Seeds and kernels 0 0 3 4
Wine 0 1 2.7 2.7
Cream 0 0 2 4
Olives (including preserved) 0 0 6 8
Honey 1 1 13 13.5
Citrus, Other 1 0 1.6 3.5
Lemons, Limes and products 1 0 1 2.5
Tea (including mate) 0 0 2.2 3.6
Grapefruit and products 0 0 2 2
Coffee and products 1 0 2 2

Data sources:

Living Wage FAQ.

WageIndicator Cost of Living Survey

World Bank Databank, Fertility rate – average births per woman in years 2010-2014

ILO, Estimated participation rate in 2017

FAO, Food balance sheet in 2013 

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