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Azerbaijan

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

Azerbaijan
Everything you need to know about payroll, benefits & hiring top talent in Azerbaijan

Currency

Azerbaijani Manat (AZN)

Salary payment frequency

Monthly

Capital

Baku

Time Zone

GMT +4:00

Official Languages

Azerbaijani 

Is English spoken?

No
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Employer of Record Azerbaijan Guide

Quick Links

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Introduction
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Employer Contributions
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Employee Contributions
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Employment Terms
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Introduction

General Overview & Economic Facts
  • Azerbaijan, officially known as the Republic of Azerbaijan, is a country located in on the border of Eastern Europe and Western Asia
  • It spans an area of approximately 86,600 km2 (33,400 sq mi) and has a population of approximately 10.11 million
  • Azerbaijan ranks fairly in terms of human development with a ranking of 88th on the HDI (2019)
  • Azerbaijan has one of the fastest growing economies. It ranks 91st in terms of nominal GDP (2020) and 60th in terms of PPP (2020)
Why Employ In Azerbaijan?
  • The main exports from Azerbaijan includes petroleum gas, crude petroleum, refined petroleum, gold and tomatoes
  • 13.17% of the population is between the ages of 15 and 24 years, with 45.29% of the population being between the ages of 25 and 54. Azerbaijan has a fairly mature population, making it an excellent country to hire more experienced professionals
Overview Of The Labour Law
  • The main source of employment law in Azerbaijan is the Labour Code
  • The Labour Code regulates employment contracts, minimum wage, bonuses, working hours, leave, notice periods and severance pay
  • Azerbaijan’s labour laws offer protection to both employers and employees
Fun Country Facts
  • Baku’s Old City is home to the world’s first private Museum of Miniature Books
  • Azerbaijan is known as the land of fire
  • Azerbaijan’s national sport is played to music
Why Use Playroll Services For Azerbaijan?
  • Employing in Azerbaijan requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Azerbaijan
  • With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
  • We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
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Employer Contributions

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.

Unemployment Insurance Contributions (UIC)

Calculated on the gross monthly salary

0.50%

Medical Insurance
Calculated on the gross monthly salary

Earning between AZN 0.00 and AZN 8,000.00 per month

2.00%

Earning AZN 8,000.00 per month or more

0.50%

Social Security

Calculated on the gross monthly salary 

Non-oil and gas sector

Earning between AZN 0.00 and AZN 200.00 per month
22.00%

Earning AZN 200.00 per month or more
15.00%

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Employee Contributions

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.

Unemployment Insurance Contributions (UIC)

Calculated on the gross monthly salary

0.50%

Social Security Debt Reimbursement Contribution

Called Contribution Pour Le Remboursement De La Dette Sociale (CRDS). Calculated on 98.25% of monthly income

0.50%

Medical Insurance
Calculated on the gross monthly salary 

Earning between AZN 0.00 and AZN 8,000.00 per month
2.00%

Earning AZN 8,000.00 per month or more
0.50%

Social Security
Calculated on the gross monthly salary

Non-oil and gas sector

Earning between AZN 0.00 and AZN 200.00 per month
3.00%

Earning AZN 200.00 per month or more
10.00%

Income Tax

Income Tax is ‘Pay As You Earn’

Income bracket per annum

Earning between AZN 0.00 and AZN 8,000.00 per month
0.00%

Earning AZN 8,000.00 per month or more
14.00%

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Employment Terms

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General

Minimum Wage
  • AZN 300.00 per month
Working Hours
  • Maximum of 8 hours per day and 40 hours per week
  • The duration of the meal interval is determined by the parties
  • Typical working hours are 09h00 to 18h00, Monday to Friday
Overtime
  • Maximum of 4 overtime hours over 2 days
Notice Period

Termination by employee- 1 month

Termination by employer-

  • Employed between 0 and 1 year- 2 weeks
  • Employed between 1 and 5 years- 4 weeks’ notice
  • Employed between 5 and 10 years- 6 weeks’ notice
  • Employed for 10 or more years- 9 weeks’ notice
Severance Pay
  • Employed between 0 and 1 year- 1 month’s salary
  • Employed between 1 and 5 years- 1.4 months’ salary
  • Employed between 5 and 10 year- 1.7 months’ salary
  • Employed for 10 or more years- 2 months’ salary
Probation Period
  • There is no mandatory probation period
  • Probation periods may be a maximum of 3 months
Bonus
  • There is no statutory bonus
      Public Holidays

      Public holidays 2022

      • January 1st – New Year’s Day
      • March 8th – Women’s Day
      • May 9th – Victory Day
      • March 20th – 25th – Novruz Holiday
      • May 2nd – Eid al Fitr
      • May 28th – Republic Day
      • June 15th – Day of National Salvation of the Azerbaijani People
      • June 26th – Armed Forces Day of the Republic of Azerbaijan
      • July 9th – Eid al Adha
      • October 18th – National Independence Day
      • November 8th – Victory Day of the Republic of Azerbaijan
      • November 9th – National Flag Day of the Republic of Azerbaijan
      • November 12th – Constitution Day
      • November 17th – National Revival Day
      • December 31st – Day of Solidarity of World Azerbaijanis
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      Leave

      Paid Leave / Vacation Days
      • Paid leave
      • Paid by employer
      • Employed between 6 months and 5 years- 21 days
      • Employed between 5 and 10 years- 23 day
      • Employed between 10 and 15 years- 25 days
      • Employed for 15 or more years- 27 days
      Sick Leave
      • Paid leave
      • Paid by Social Security for the first 14 days
      • No limit on the number of sick leave days
      Maternity Leave
      • Paid leave
      • Paid by Social Security
      • 126 days
      Paternity Leave
      • Unpaid leave
      • 14 days
      Parental Leave
      • Paid leave
      • Paid by Social Security
      • Until the child reaches the age of 3
      Study Leave
      • Paid leave
      • Paid by employer
      • 1 month
      Adoption Leave
      • Paid leave
      • Paid by Social Security
      • 56 days
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