Payroll and benefits guide
Azerbaijan
CapitalBaku
Fiscal Year1 January - 31 December
Date Formatdd/mm/yyyy
CurrencyAZN (Azerbaijani Manat)
Payroll FrequencyMonthly
Employer Taxes16.5% – 21%
Employee Costs9% – 12%
Overview
- Languages
- Azerbaijani
- Income tax
- 3% – 25%
- VAT
- 18%
Contributions
Employer
22% / 15%
Social insurance (non-oil private sector)22% on the first AZN 200/month and 15% on AZN 200–8,000; 11% above AZN 8,000 (from 1 January 2026)
0.5%
Unemployment insurance
2%
Mandatory medical insurance2% on the first AZN 2,500/month; 0.5% on the excess
16.5% – 21%
Total employer costEffective rate for monthly salaries from the minimum wage up to AZN 8,000
Employee
3% / 10%
Social insurance (non-oil private sector)3% on the first AZN 200/month; 10% above
0.5%
Unemployment insurance
2%
Mandatory medical insurance2% on the first AZN 2,500/month; 0.5% on the excess
9% – 12%
Total employee cost
Minimum Wage & Working Hours
- Minimum wage
- AZN 400 / Monthly
- In force since 1 January 2025; no change announced for 2026
- Standard working hours
- 40 hours per week, 8 hours per day
- Overtime
- Paid at no less than double the regular rate
Leave
- Annual leave21 calendar daysExtra days for longer service and certain roles
- Maternity leave126 calendar days70 days before and 56 days after birth; paid by the state social insurance fund
Termination
- Probation period
- Up to 3 months
- 13th salary
- Not mandatory
Benefits
- State social and medical insuranceMandatory
Pension, unemployment, and mandatory medical coverage funded through payroll
- Private health insuranceCommon
Common in oil and gas, banking, and international firms
FAQ
Sources
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