Azerbaijan at a glance
Taxes in Azerbaijan
Employer Contributions
Total employer social security: ~23%
| Contribution Type | Rate |
|---|---|
| Social insurance (up to AZN 200) | 22% |
| Social insurance (AZN 200 – AZN 8,000) | 15% on amount exceeding AZN 200 |
| Social insurance (above AZN 8,000) | 11% |
| Health insurance (above AZN 2,500) | 0.5% |
| Unemployment insurance | 0.5% |
Total employer social security: ~23%
| Contribution Type | Rate |
|---|---|
| Social insurance (up to AZN 200) | 22% |
| Social insurance (AZN 200 – AZN 8,000) | 15% on amount exceeding AZN 200 |
| Social insurance (above AZN 8,000) | 11% |
| Health insurance (above AZN 2,500) | 0.5% |
| Unemployment insurance | 0.5% |
Income tax: 3%–14% | Social security: ~11%
| Contribution Type | Rate |
|---|---|
| Social insurance (up to AZN 200) | 3% |
| Social insurance (AZN 200 – AZN 8,000) | 10% on amount exceeding AZN 200 |
| Social insurance (above AZN 8,000) | 10% |
| Health insurance (above AZN 2,500) | 0.5% |
| Unemployment insurance | 0.5% |
| Monthly Income (AZN) | Tax |
|---|---|
| Up to 2,500 | 3% |
| 2,501 – 8,000 | AZN 75 + 10% of amount exceeding AZN 2,500 |
| Above 8,000 | AZN 625 + 14% of amount exceeding AZN 8,000 |
Oil/gas and public sector employees have different rates: 14% up to AZN 2,500; AZN 350 + 25% above AZN 2,500.
Employer of Record in Azerbaijan
How Remote& EOR Works
Remote& directly employs your Azerbaijani workers — managing social insurance, health insurance, payroll, tax filings, and employment contracts in accordance with the LCAR, while you direct the work.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Employs worker directly; runs payroll, files social/health/unemployment contributions, ensures LCAR compliance |
| Employee | Works for your company under a locally compliant Azerbaijani contract |
Ask Remi:
"Hire a senior data scientist in Baku — AZN 5,000/month, starting next month" Remi handles everything: contract, social insurance registration, health insurance enrollment, tax filing, and payroll.
Benefits in Azerbaijan
- Public health insurance: Mandatory nationwide. Contributions apply above AZN 2,500 salary — 0.5% employer, 0.5% employee
- Social Security Fund: Mandatory contributions fund retirement, illness, disability, maternity, and unemployment benefits
- Supplemental private health insurance
- Performance bonuses
- Professional development budget
- Pension contributions
- Flexible work arrangements
- Meal and transportation allowance
- Family and childcare support
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 21 days |
| Sick Leave | First 14 days paid by employer; remaining days covered by social security |
| Maternity Leave | 126 days (70 before birth, 56 after) |
| Paternity Leave | 14 days |
| Adoption Leave | 56 days |
| Childcare Leave | Mothers with 2+ children: 2 extra days; mothers with 3+ children: 5 extra days; single parents (mothers or fathers) with children under 16: 14 extra days |
Employment conditions
Health and Safety
Employers must provide safe working conditions and mandatory insurance coverage, with protections against forced labor under the LCAR.
Trade Union Rights
Employees have the right to join trade unions, representative bodies, and other public organizations, and to participate in collective action including strikes under their employment agreements.
Employee Rights & Protections
Azerbaijani workers are entitled to: healthy and safe workplace conditions, equal treatment and anti-discrimination protection, anti-harassment protection, severance rights, and protection from collective dismissal.
Payments
End of employment in Azerbaijan
Termination grounds are defined by Article 70 of the LCAR and include termination at the initiative of either party, expiry of a fixed-term contract, changes in working conditions, circumstances beyond both parties' control, and other grounds specified in the employment contract. Employees are entitled to notice and applicable severance depending on the grounds for termination.
Frequently asked questions
Four paths: run payroll from HQ for short-term arrangements; engage genuine independent contractors for project-based work; establish an Azerbaijani entity for direct employment; or use Remote& to employ workers directly on your behalf — handling all social security, health insurance, and LCAR compliance.