Talent Wiki - Azerbaijan
Your quick guide on talent and labor compliance norms in Azerbaijan
Capital
Baku
Currency
Azerbaijani Manat (AZN)
Languages
Azerbaijani
Payroll Frequency
Monthly
GDP per Capita
$6,842
Employer Tax
24.5%
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
Local Universities
The top local universities in Azerbaijan are as follows:
ADA Universiteti
RANKING
Local: 1
World: 3914
Xezer Universiteti
RANKING
Local: 2
World: 4969
Azerbaycan Dövlet Iqtisad Universiteti
RANKING
Local: 3
World : 5673
Baki Dövlet Universiteti
RANKING
Local: 5
World : 5878
Azerbaycan Texniki Universiteti
RANKING
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 Sourcing Tips
Top Local Job Boards:
Number of LinkedIn users:
643,000
Top Recruitment Agencies:
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
Payroll Cycle
Azerbaijan follows a monthly payroll cycle.
Minimum Wage
The Azerbaijan minimum wage is 105 Azerbaijani manat per month.
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.
Bonus
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
Taxes
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.
VAT:
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.
