Azerbaijan has taken a decisive step toward reforming its public sector compensation model by both introducing a unified salary system for civil servants and raising the salaries of senior government officials.
The changes are part of a broader package of amendments to the Law “On Civil Service” and related regulations, aimed at restructuring how public employees are paid. At the core of the reform is a transition away from a fragmented system of base salaries supplemented by multiple allowances and bonuses, toward a single, fixed salary model.
Under the previous system, civil servants received a base salary along with a range of additional payments. These included bonuses for years of service, allowances for the execution of official duties, and various supplements funded from the state budget. Many of these payments depended on tenure or position, meaning not all employees had equal access to them. For instance, seniority bonuses ranged from 5% to 30% of the base salary, while certain roles received an additional 15% for the exercise of official authority.
The new model eliminates these variable components. Instead, all such payments are consolidated into a fixed monthly salary. This approach is widely used in international practice, including in the United States, Eastern Europe, and parts of Southeast Asia, and is generally seen as improving transparency and predictability. Civil servants will now clearly understand their monthly income without relying on discretionary bonuses.
At the same time, the reform is expected to result in an overall increase in salaries. The consolidation of previously separate payments into a single structure is designed not only to simplify the system but also to raise compensation levels. Another key objective is to reduce corruption risks: international experience suggests that stable and relatively high fixed salaries can lower incentives for illicit behavior. The reform also addresses disparities in pay, ensuring a more uniform distribution of compensation across similar positions, and improves the government’s ability to forecast budget expenditures.
These structural changes have already been accompanied by concrete adjustments at the highest levels of government. By decree of President Ilham Aliyev, new salary levels for senior officials have been established, effective retroactively from January 1, 2026.
Under the new scale, the Prime Minister will receive a monthly salary of 17,160 manats, the First Deputy Prime Minister 15,950 manats, and Deputy Prime Ministers 14,850 manats. Ministers’ salaries are set at 13,750 manats, while heads of central executive authorities will receive 13,200 manats. First deputy ministers and deputy ministers will earn 12,650 and 12,100 manats respectively, and deputy heads of authorities 11,550 manats.
The reform also covers regional executive leadership. The head of the Baku executive authority will receive 13,200 manats per month, while heads of executive authorities in Ganja and Sumgait will earn 9,900 manats. In other cities and districts, the monthly salary is set at 8,800 manats.
Taken together, these measures signal a shift toward a more centralized, transparent, and predictable remuneration system in Azerbaijan’s public sector. While debates remain about the potential impact on motivation in the absence of performance-based bonuses, the government appears to be prioritizing stability, administrative clarity, and anti-corruption outcomes as it modernizes the civil service framework.
