Although the minimum wage in the country increased in previous years, no increase was observed this year, while prices continue to rise rapidly. The rise in food prices, increased transportation costs, and the expected changes in utility tariffs further increase the daily expenses of the population. Against this backdrop, the stability of salaries and pensions seriously affects purchasing power. How will this gap between income and expenses change in 2026, and is an increase in wages expected?
In his statement to Medianews.az on the topic, the head of the Center for Liberal Economists, economist-expert Akif Nasirli said that not increasing the minimum wage last year under high inflation conditions provokes serious social criticism.
Because while prices rise rapidly, incomes remaining the same effectively means a reduction in people's real earnings: "This is felt more heavily especially by low-income families and weakens their ability to cover daily expenses. Inflation at the level of 5.7% in the early months of 2026 also shows that price increases are continuing and real incomes are decreasing. Even if salaries and pensions do not change nominally, their purchasing power declines. The increase in food prices, transportation costs, and the expected changes in utility tariffs further intensify this pressure."
According to the expert, under such circumstances, the gap between incomes and expenses is highly likely to deepen further in 2026:
"If the state does not make decisions regarding indexation or increases in wages and social payments, the financial situation of a large part of the population may become even more difficult. Especially fixed-income and socially vulnerable groups will be more affected by this situation.
Regarding the issue of wage increases, this will mainly depend on budget opportunities and economic indicators around mid-year. If inflation remains at a high level, the government might be forced to make certain increases. However, current trends show that even if there is an increase, it is unlikely that this increase will fully compensate for inflation. This indicates that the restoration of real incomes will not be possible in the short term."
Oguz Ayvaz,
Medianews.az