The Labor Code has incorporated an equal pay obligation

On May 7, 2026, significant amendments were made to the Labor Code of the Republic of Azerbaijan to ensure gender equality. 

Pursuant to the amendment, a new obligation for the employer has been added to paragraph “g” of Article 12(1) of the Labor Code, in the following wording:

“To take the necessary measures to ensure that employees who perform same work or work of equal value are paid equal remuneration, regardless of gender”

This obligation requires the employer to ensure that employees, regardless of gender, are paid equally for both the same work and for different works of equal value. Thus, the principle of “equal remuneration for equal work” typically involves a comparison for the same job performed by individuals at the same establishment and in the same occupational field. The principle of “equal remuneration for work of equal value” also applies when women and men perform different jobs.

In addition, the following paragraph 3 has been added to Article 154 of the Labor Code: 

“The employer is obligated to pay equal remuneration to employees who perform the same work or work of equal value, regardless of gender. The equivalence of work is determined by the employer, taking into account the working conditions, the nature of the job function, and the tariff-qualification characteristics provided for in the applicable unified tariff-qualification directory.”

The determination of the equivalence of different jobs under this provision is recognised as employer’s duty. The employer must determine that jobs are of equal value by considering the following criteria:

1. working conditions;
2. the nature of the job function;
3. the provisions in the applicable unified tariff-qualification reference books.

It should be noted that with this amendment, the principle of “equal remuneration for work of equal value” from the International Labour Organization’s Equal Remuneration Convention, to which the Republic of Azerbaijan is also a party, is established as a specific requirement. 

To align their internal labor regulations with this amendment, enterprises are advised to:

1. Analyze whether there are differences in pay for jobs that are the same or of equal value; 

2. Approve the criteria for determining the equal value of jobs in writing; 

3. After the approval of the stated objective criteria, verify that the actual gender pay differences are consistent with the criteria; 

4. If differences exist, eliminate the gender pay gaps in accordance with the assessment based on the criteria. 

You are welcome to share any questions you may have with us on this matter.