Azerbaijan

Currency
Azerbaijani manat (AZN)
Payroll Frequency
Monthly
Employer Taxes
22.00%

About 

Azerbaijan

Located at the crossroads of Eastern Europe and Western Asia, Azerbaijan became the world's first secular, democratic, Muslim-majority nation in 1918. Classified as a developing country, Azerbaijan nevertheless has a high rate of economic development.

Overview

Population
10.02 million
Language
Azerbaijani
Capital
Baku
Currency
Azerbaijani manat (AZN)
Country code
+994
Min wage
250 AZN/month
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Cycle

Monthly

Avg employer tax

22%

Taxation

Tax breakdown - Employer

Oil and Gas Industry:

Social Security
22%
Unemployment
0.50%
Mandatory Medical Insurance
2.00%

Private Sector:

Social Security
  • 2.00% up to 200 AZN
  • 15% above 200 AZN + 44 AZN
Unemployment
0.50%
Mandatory Medical Insurance
  • 1.00% up to 8,000 AZN
  • 0.5% above 8,000 AZN + 160 AZN

Note: These private sector rates apply for seven years, after which they align with those of the oil and gas industry.

VAT

18%

Holidays / PTO

Public holidays in 2024
  • 1 Jan to 4 Jan: New Year Holiday
  • 8 Mar: International Women's Day
  • 20 Mar to 24 Mar: Novruz Holiday
  • 2 May to 3 May: Ramazan Bayram Holiday
  • 9 May: Victory Day
  • 28 May: Republic Day
  • 30 May: Republic Day Holiday
  • 15 Jun: Salvation Day
  • 26 Jun: Armed Forces Day
  • 27 Jun: Armed Forces Day Holiday
  • 9 Jul to 12 Jul: Gurban Bayram Holiday
  • 9 Nov: Flag Day
  • 31 Dec: Solidarity Day of Azerbaijanis
Sick days
  • The first 14 days are paid in full by the employer.
  • Beyond 14 days, the State Social Protection Fund covers the payments.
  • A medical certificate is required to access sick leave payments.

Maternity leave
  • 126 days total (70 days before the due date and 56 days after birth).
  • Paid at 100% of the average of the mother's last 12 months' salary.
  • Funded by the State Social Protection Fund.
Paternity leave

14 days unpaid after the birth.

Termination Process

Process

  • Must follow the procedures outlined in the Employees Act.
  • Final payments are due by the last day of employment.
  • Details of the resignation must be recorded in the government's electronic system.

Notice Period

  • Under 2 years: 6 weeks' notice
  • 2-5 years: 2 months' notice
  • 5-15 years: 3 months' notice
  • 15-25 years: 4 months' notice
  • Over 25 years: 5 months' notice
  • Note: In cases of downsizing, a two-month notice is required, during which employees are entitled to one paid day off per week to seek new employment.

Severance Pay

  • Under 1 year: 1 month's salary
  • 1-5 years: 4 months' salary
  • 5-10 years: 7 months' salary
  • Over 10 years: 2 months' salary
  • Note: In the event of redundancy, three months' severance payment is required. Additional payments apply if the employee is called for military service, becomes permanently disabled, or if employment terms change. In case of an employee's death, their family is entitled to a payment equivalent to three months' salary.
  • Note: In cases of downsizing, a two-month notice is required, during which employees are entitled to one paid day off per week to seek new employment.

Probation Period

Standard probation periods are three months, during which either party can terminate the contract with three days' notice.

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Tax Calculation

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AZ
*
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Azerbaijan

Located at the crossroads of Eastern Europe and Western Asia, Azerbaijan became the world's first secular, democratic, Muslim-majority nation in 1918. Classified as a developing country, Azerbaijan nevertheless has a high rate of economic development.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Azerbaijani manat (AZN)
Payroll Frequency
Monthly
Employer Taxes
22.00%

Overview

Population
10.02 million
Language
Azerbaijani
Capital
Baku
Currency
Azerbaijani manat (AZN)
Country code
+994
Min wage
250 AZN/month
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Monthly
Time-Based Employees
Avg employer tax

22%

Tax Breakdown

Oil and Gas Industry:

Social Security
22%
Unemployment
0.50%
Mandatory Medical Insurance
2.00%

Private Sector:

Social Security
  • 2.00% up to 200 AZN
  • 15% above 200 AZN + 44 AZN
Unemployment
0.50%
Mandatory Medical Insurance
  • 1.00% up to 8,000 AZN
  • 0.5% above 8,000 AZN + 160 AZN

Note: These private sector rates apply for seven years, after which they align with those of the oil and gas industry.

VAT

VAT

18%

Tax Calculation for Azerbaijan
*
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AZ
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Azerbaijan typically includes the following steps to ensure a smooth transition for new hires:

Understand Legal Requirements

Familiarize yourself with Azerbaijan's Labor Code, which outlines employers' and employees' rights and obligations, including contracts, working hours, minimum wage, leave entitlements, and termination procedures.

Prepare Employment Contracts

Draft bilingual employment contracts in Azerbaijani and English, detailing job descriptions, compensation, working hours, and notice periods, in compliance with local labor laws.

Register Employment Agreements

Submit employment agreements to the Ministry of Labor and Social Protection of Population to ensure compliance with Azerbaijani labor laws.

Complete Necessary Documentation

Ensure all legal documentation, including tax forms and social security registrations, are accurately completed and submitted promptly.

Introduce Organizational Culture

Provide new employees with an understanding of the company's mission, values, and culture to facilitate their integration into the organization.

Assign a Mentor or Buddy

Pair new hires with experienced colleagues to provide guidance, answer questions, and help them acclimate to their new roles.

Provide Training and Development

Offer necessary training to help new employees understand their roles, responsibilities, and company policies, enhancing their confidence and productivity.

Utilize Employer of Record (EOR) Services if Necessary

For expedited onboarding, consider partnering with EOR services, which can handle employment, taxes, and compliance on your behalf.

Monitor and Evaluate the Onboarding Process

Regularly assess the effectiveness of your onboarding program and make adjustments as needed to ensure continuous improvement.

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Azerbaijan
When drafting an employment contract for employees in Azerbaijan, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • The first 14 days are paid in full by the employer.
  • Beyond 14 days, the State Social Protection Fund covers the payments.
  • A medical certificate is required to access sick leave payments.

Maternity leave
  • 126 days total (70 days before the due date and 56 days after birth).
  • Paid at 100% of the average of the mother's last 12 months' salary.
  • Funded by the State Social Protection Fund.
Paternity leave

14 days unpaid after the birth.

13 Public holidays in Azerbaijan

Note: Islamic holidays such as Ramazan Bayram (Eid al-Fitr) and Gurban Bayram (Eid al-Adha) are based on the lunar calendar; dates are tentative and may vary.

1st
New Year Holiday
2nd
New Year Holiday
20th
Martyrs' Day
8th
International Women's Day
21st
Novruz Holiday
22nd
Novruz Holiday
23rd
Novruz Holiday
24th
Novruz Holiday
30th
Ramazan Bayram Holiday (tentative)
31st
Ramazan Bayram Holiday (tentative)
9th
Victory Day over Fascism
28th
Republic Day
6th
Gurban Bayram Holiday (tentative)
7th
Gurban Bayram Holiday (tentative)
15th
National Salvation Day
26th
Armed Forces Day
8th
Victory Day
9th
State Flag Day
31st
International Solidarity Day of Azerbaijanis
  • 1 Jan to 4 Jan: New Year Holiday
  • 8 Mar: International Women's Day
  • 20 Mar to 24 Mar: Novruz Holiday
  • 2 May to 3 May: Ramazan Bayram Holiday
  • 9 May: Victory Day
  • 28 May: Republic Day
  • 30 May: Republic Day Holiday
  • 15 Jun: Salvation Day
  • 26 Jun: Armed Forces Day
  • 27 Jun: Armed Forces Day Holiday
  • 9 Jul to 12 Jul: Gurban Bayram Holiday
  • 9 Nov: Flag Day
  • 31 Dec: Solidarity Day of Azerbaijanis

Termination Process

Process

  • Must follow the procedures outlined in the Employees Act.
  • Final payments are due by the last day of employment.
  • Details of the resignation must be recorded in the government's electronic system.

Notice Period

  • Under 2 years: 6 weeks' notice
  • 2-5 years: 2 months' notice
  • 5-15 years: 3 months' notice
  • 15-25 years: 4 months' notice
  • Over 25 years: 5 months' notice
  • Note: In cases of downsizing, a two-month notice is required, during which employees are entitled to one paid day off per week to seek new employment.

Severance Pay

  • Under 1 year: 1 month's salary
  • 1-5 years: 4 months' salary
  • 5-10 years: 7 months' salary
  • Over 10 years: 2 months' salary
  • Note: In the event of redundancy, three months' severance payment is required. Additional payments apply if the employee is called for military service, becomes permanently disabled, or if employment terms change. In case of an employee's death, their family is entitled to a payment equivalent to three months' salary.
  • Note: In cases of downsizing, a two-month notice is required, during which employees are entitled to one paid day off per week to seek new employment.

Probation Period

Standard probation periods are three months, during which either party can terminate the contract with three days' notice.

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Azerbaijan with RemotePass
Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Azerbaijan.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Azerbaijan

العملة
Azerbaijani manat (AZN)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
22.00%

عن 

Azerbaijan

Located at the crossroads of Eastern Europe and Western Asia, Azerbaijan became the world's first secular, democratic, Muslim-majority nation in 1918. Classified as a developing country, Azerbaijan nevertheless has a high rate of economic development.

ملخص

التركيبة السكانية
10.02 million
اللغة
Azerbaijani
العاصمة
Baku
العملة
Azerbaijani manat (AZN)
رمز الاتصال الدولي
+994
الحد الأدنى للأجور
250 AZN/month
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

موعد صرف الرواتب

Monthly

متوسط ​​ضريبة صاحب العمل

22%

تحصيل الضرائب

التوزيع الضريبي - صاحب العمل

Oil and Gas Industry:

Social Security
22%
Unemployment
0.50%
Mandatory Medical Insurance
2.00%

Private Sector:

Social Security
  • 2.00% up to 200 AZN
  • 15% above 200 AZN + 44 AZN
Unemployment
0.50%
Mandatory Medical Insurance
  • 1.00% up to 8,000 AZN
  • 0.5% above 8,000 AZN + 160 AZN

Note: These private sector rates apply for seven years, after which they align with those of the oil and gas industry.

ضريبة القيمة المضافة

18%

العطل / PTO

العطلات الرسمية في عام 2024
  • 1 Jan to 4 Jan: New Year Holiday
  • 8 Mar: International Women's Day
  • 20 Mar to 24 Mar: Novruz Holiday
  • 2 May to 3 May: Ramazan Bayram Holiday
  • 9 May: Victory Day
  • 28 May: Republic Day
  • 30 May: Republic Day Holiday
  • 15 Jun: Salvation Day
  • 26 Jun: Armed Forces Day
  • 27 Jun: Armed Forces Day Holiday
  • 9 Jul to 12 Jul: Gurban Bayram Holiday
  • 9 Nov: Flag Day
  • 31 Dec: Solidarity Day of Azerbaijanis
الإجازات المرضية
  • The first 14 days are paid in full by the employer.
  • Beyond 14 days, the State Social Protection Fund covers the payments.
  • A medical certificate is required to access sick leave payments.

إجازة الأمومة
  • 126 days total (70 days before the due date and 56 days after birth).
  • Paid at 100% of the average of the mother's last 12 months' salary.
  • Funded by the State Social Protection Fund.
إجازة الأبوة

14 days unpaid after the birth.

إنهاء العقد

عملية الإنهاء

Process

  • Must follow the procedures outlined in the Employees Act.
  • Final payments are due by the last day of employment.
  • Details of the resignation must be recorded in the government's electronic system.

Notice Period

  • Under 2 years: 6 weeks' notice
  • 2-5 years: 2 months' notice
  • 5-15 years: 3 months' notice
  • 15-25 years: 4 months' notice
  • Over 25 years: 5 months' notice
  • Note: In cases of downsizing, a two-month notice is required, during which employees are entitled to one paid day off per week to seek new employment.

Severance Pay

  • Under 1 year: 1 month's salary
  • 1-5 years: 4 months' salary
  • 5-10 years: 7 months' salary
  • Over 10 years: 2 months' salary
  • Note: In the event of redundancy, three months' severance payment is required. Additional payments apply if the employee is called for military service, becomes permanently disabled, or if employment terms change. In case of an employee's death, their family is entitled to a payment equivalent to three months' salary.
  • Note: In cases of downsizing, a two-month notice is required, during which employees are entitled to one paid day off per week to seek new employment.

Probation Period

Standard probation periods are three months, during which either party can terminate the contract with three days' notice.

فترة الإشعار

Regardless of their length of service, all employees must give at least one months' notice. Employment contracts can increase employee notice periods up to a maximum of six months. The amount of notice that employers must give employees depends on their length of service:

  • Under 2 years: 6 weeks’ notice.
  • Between 2 and 5 years: 2 months’ notice.
  • Between 4 and 15 years: 3 months’ notice.
  • Between 15 and 25 years: 4 months’ notice.
  • Over 25 years: 5 months’ notice.
  • If a contract is terminated on account of downsizing, employers must give two months' notice, during which time employees can take one paid day's leave per week to seek a new job.
مكافأة نهاية الخدمة

Severance pay is normally dependent on the employee's length of service.

  • Under 1 year – 1 month's salary
  • Between 1 and 5 years – 4X the monthly salary
  • Between 5 and 10 years – 7X the monthly salary
  • More than 10 years – 2X the monthly salary
  • Three months of severance payment is required in the event of redundancy. An extra two months' salary must be paid if the employee is called up for military service or is unable to perform their duties on account of a permanent disability. The extra two months also apply if the terms of employment were changed. If an employee dies while employed, their family members are entitled to a payment equivalent to three months' salary.  

فترة الاختبار

Standard probation periods in Azerbaijan are three months (during which time either party can cancel the contract with three days' notice).

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حساب الضريبة

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AZ
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري
GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي
GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
طلب عرض أسعار مفصل