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Azerbaijan Employment Guide

Your quick guide on talent and labor compliance norms in Azerbaijan




Azerbaijani Manat (AZN)



Payroll Frequency


GDP per Capita


Employer Tax

5.5% - 11%

Talent Overview

Azerbaijan is a developing one with high rates of literacy, economic development, and low unemployment rates. The country’s primary industry is oil and natural gas. As per the World Bank’s latest ease of doing business report, Azerbaijan ranks within the top 30.

Major economic hubs:

Baku, Ganja, Sumqayit

Skills in demand:

Administrative jobs, Translators, Marketing specialists, HR

Group 5170746

Local Universities

The top local universities in Azerbaijan are as follows:

Azerbaijan Uni1

ADA Universiteti


Local: 1

World: 3914

Azerbaijan Uni2

Xezer Universiteti


Local: 2

World: 4969

Azerbaijan Uni3

Azerbaycan Dövlet Iqtisad Universiteti


Local: 3

World : 5673

Azerbaijan Uni4

Baki Dövlet Universiteti


Local: 5

World : 5878


Azerbaycan Texniki Universiteti


Local: 6

World : 6495

Salary Data

Some of the popular jobs and their monthly salaries in Azerbaijan are listed below:

Job title Average Monthly Salary ( AZN ) Average Monthly Salary (USD)
Accountant 2,130 1,252
Financial Analyst 4,040 2,376
Administrative Assistant 1,660 976
Office Manager 2,740 1,611
Secretary 1,360 800
Customer Service Representative 1,110 652
Human Resource Manager 4,620 2,717
Talent Source

Talent Sourcing Tips

Top Local Job Boards:

JobsDay.Az, Azinka

Number of LinkedIn users:


Top Recruitment Agencies:

HCB, Smart Resource Group, Azinka

Employing in Azerbaijan

The employment relations in Azerbaijan are governed by the labor code, which establishes labor rights regulations and implementation. Read forward and get to know the fundamental regulations for employment in Azerbaijan.

Employee Contract:

Written contracts are a legal requirement for Azerbaijan employees and must be signed, sealed, or both. The law does not make it mandatory for contracts to be in the Azerbaijani language, yet it is recommended to use that language.

Probation Period:

The probation period followed in Azerbaijan is up to three months.

Public and Provincial Holidays 2023

Date Name Type
1 Jan New Year’s Day Public holiday
2 Jan Day off for New Year’s Day Public holiday
2 Jan New Year’s Holiday Public holiday
3 Jan Day off for New Year’s Holiday Public holiday
4 Jan New Year’s Holiday Public holiday
20 Jan Martyrs’ Day Public holiday
8 Mar Women’s Day Public holiday
20 Mar Nowruz Public holiday
21 Mar Nowruz/Spring Holiday Public holiday
22 Mar Nowruz/Spring Holiday Public holiday
23 Mar Nowruz/Spring Holiday Public holiday
24 Mar Nowruz/Spring Holiday Public holiday
22 Apr Ramadan holiday (Tentative Date) Public holiday
23 Apr Ramadan holiday (Tentative Date) Public holiday
24 Apr Day off for Ramadan holiday (Tentative Date) Public holiday
25 Apr Day off for Ramadan holiday (Tentative Date) Public holiday
9 May Victory Day over Fascism Public holiday
28 May Republic Day Public holiday
29 May Day off for Republic Day Public holiday
15 Jun Day of National Salvation of the Azerbaijani People Public holiday
26 Jun Azerbaijan Armed Forces Day Public holiday
28 Jun Feast of the Sacrifice (Tentative Date) Public holiday
29 Jun Feast of the Sacrifice Holiday (Tentative Date) Public holiday
8 Nov Victory Day of the Republic of Azerbaijan Public holiday
9 Nov State Flag Day of Azerbaijan Public holiday
31 Dec World Azerbaijanis Solidarity Day Public holiday

Employee Leaves:

Type of Leave Time Period Mandatory
Annual Leave 21 days Yes
Sick Leave 14 days Yes
Maternity Leave 126 days Yes



Payroll 1

Payroll Cycle

Azerbaijan follows a monthly payroll cycle.

Payroll 2

Minimum Wage

The Azerbaijan minimum wage is 105 Azerbaijani manat per month. 

Payroll 3

Overtime Pay

In workplaces with difficult or hazardous working conditions, employees should not be allowed to work overtime beyond four hours, during two consecutive working days. Overtime pay will be based on the employment contract signed.


13th Month Pay:

There are no statutory regulations for the 13th-month pay in Azerbaijan.

Employee Benefits:

  • Disability and death benefits
  • Retirement benefits
  • Compulsory medical insurance
  • Paid maternity leave
  • Unpaid paternity leave
  • Vacation leave


Employer Payroll Tax:

Tax Categories Oil and Gas Industry Private Sector
Social security 22% 2.00% up to 200 AZN; 15% above 200 AZN + 44 AZN
Unemployment 0.5% 0.5%
Mandatory medical Insurance 2% 2% up to 8,000 AZN; 0.5% above AZN 8000 + 160 AZN

After 7 years of the grace period, from 2019, private sector social security contributions will be the same as oil and gas industry contributions, for both employer and employee.

Employee Payroll Tax:

Tax Categories Oil and Gas Industry Private Sector
Social security 3% 3.00% under 200 and 10% on the excess of 200 AZN + 6 AZN
Unemployment 0.5% 0.5%
Mandatory medical Insurance 2% 2% up to 8,000 AZN; 0.5% above AZN 8000 + 160 AZN

Employee Income Tax:

Taxable Monthly Income Private Sector Oil and Gas Industry
Up to AZN 8000 0%
Above AZN 8000 14% on the amount exceeding AZN 8000
Up to AZN 2,500 14%
Above AZN 2,500 AZN 350 + 25% of the amount exceeding AZN 2,500

Private sector employees (with income up to AZN 8000 per month ) are exempted from income tax for a grace period of 7 years, after which they will be under the standard governmental rates already followed by the oil and gas industry.


A standard rate of 18% is followed in Azerbaijan.

Offboarding & Termination

The major grounds of employment termination in Azerbaijan include:

  • Initiation by either one of the parties involved in the contract
  • Change in ownership
  • Mutual consent
  • Change in terms and conditions
  • Employment contract expiration
  • Cases relating to violations of job description
  • Prison sentence for employee

A one-month notice period is usually followed in Azerbaijan.

Severance pay in Azerbaijan is mandatory. If an employee contract is terminated under Section 70, paragraph A and B hereof  employees shall be paid as follow:

  • Severance equaling to the lowest average monthly salary
  • The average monthly salary for the second and third months after dismissal until he finds a new job.

If an employment contract is terminated due to the following:

  • The terms of employment have been modified.
  • The employee has been called up for military service.
  • The employee is unable to execute their job.

A termination payment of two months’ salary must be granted in addition to general severance pay. If an employee dies while still working, their family members are entitled to a three-month wage allowance.

On the other hand, a severance pay of at least three months is necessary for employees who have been let go due to redundancy. The severance pay are as follows:

Employment Service Severance Pay
1 year or less of service 1 month’s pay
1-5 years of service 4 times the monthly pay
5-10 years of service 7 times the monthly pay
Over 10 years service 2 times the monthly salary

Visa and Immigration

Foreign employees need a work permit from Azerbaijan’s State Migration Service through their employers. The validity of this permit is one year, after which it has to be renewed.

Visa And Immigration
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Minimum Wage

Overtime Pay

Visa & Immigration