President Ilham Aliyev has signed a Decree “On additional measures regarding the use of targeted budget funds created within the state budget and extra-budgetary funds of organizations financed from the state budget.”
According to “Elchi”, the Decree establishes that the portion of extra-budgetary funds of organizations financed from the state budget (excluding the Ministry of Internal Affairs of the Republic of Azerbaijan, the State Customs Committee of the Republic of Azerbaijan, and the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan) directed toward strengthening the social protection of employees shall be used exclusively for the social protection of employees of those organizations who do not hold administrative or auxiliary positions in accordance with the Law “On Civil Service.”
The remaining portion of the extra-budgetary funds of organizations financed from the state budget (with the aforementioned exceptions) shall be transferred to the state budget.
The upper limits for salary supplements, bonuses, and other payments provided from extra-budgetary funds are as follows:
– salary supplements – up to 1.0 times the monthly salary for each employee per calendar month;
– bonuses and other payments – up to 20 percent of the annual wage fund per calendar year.
The Cabinet of Ministers must resolve issues arising from this Decree.
The Ministry of Finance must prepare and submit proposals to the President of the Republic of Azerbaijan within one month regarding:
– the abolition of targeted budget funds created within the state budget of the Republic of Azerbaijan and the use of revenue sources for those funds;
– the improvement of normative legal acts;
– the procedure for the formation, collection, use, and accounting of extra-budgetary funds of organizations financed from the state budget;
– the formation and use of funds obtained from paid services provided by institutions under the Administration of the President of the Republic of Azerbaijan and the Special Medical Service of the Republic of Azerbaijan.
The Ministry of Finance must also prepare and submit proposals to the President of the Republic of Azerbaijan in the event of salary increases for employees working in the Ministry of Internal Affairs of the Republic of Azerbaijan, the State Customs Committee of the Republic of Azerbaijan, the State Tax Service under the Ministry of Economy of the Republic of Azerbaijan, as well as organizations financed from the state budget covered by this Decree, and take necessary measures to resolve other issues arising from this Decree.
The provision regarding the upper limits for salary supplements, bonuses, and other payments provided from extra-budgetary funds will be applied starting September 1, 2026. The requirement for the remaining portion of extra-budgetary funds of organizations financed from the state budget (with the aforementioned exceptions) to be transferred to the state budget will come into force on January 1, 2027.