Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Azerbaijan

Your quick guide on talent and labor compliance norms in Azerbaijan
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Capital
Baku
Currency
Azerbaijani manat (AZN)
Languages
Azerbaijani
Payroll Frequency
Monthly
GDP per Capita
5890 USD
Employer Tax
24.5%

Supplementary Guide for Employment and Expansion in Azerbaijan

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:

Azerbaycan Memarliq ve Insaat Universiteti

RANKING

Local: 1

World : 2220

ADA Universiteti

RANKING

Local: 2

World : 2613

Baki Dövlet Universiteti

RANKING

Local: 3

World : 3061

Azerbaycan Tibb Universiteti

RANKING

Local : 4

World : 4247

Azerbaycan Texniki Universiteti

RANKING

Local : 5

World : 4258

Salary Data

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

Job title Monthly salary ( AZN ) Monthly Salary (USD)
Accountant 2,130 1,253.65
Financial Analyst 4,040 2,377.86
Administrative Assistant 1,660 977.04
Office Manager 2,740 1,612.71
Secretary 1,360 800.47
Customer Service Representative 1,110 653.33
Human Resource Manager 4,620 2,719.27

Talent Sourcing Tips

Top Local Job Boards:

JobsDay.Az, Azinka

Number of LinkedIn users:

550,000

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

Date Name Type
1 Jan New Year's Day Public holiday
2 Jan New Year's Day (day 2) Public holiday
3 Jan Day off for New Year's Day Public holiday
4 Jan Day off for New Year's Day (day 2) 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
2 May Ramadan holiday Public holiday
3 May Ramadan holiday Public holiday
9 May Victory Day over Fascism Public holiday
28 May Republic Day Public holiday
30 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
27 Jun Day off for Azerbaijan Armed Forces Day Public holiday
9 Jul Feast of the Sacrifice Public holiday
10 Jul Feast of the Sacrifice Holiday Public holiday
11 Jul Feast of the Sacrifice Holiday Public holiday
12 Jul Feast of the Sacrifice Holiday 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.

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Minimum Wage

As of January 2022, the minimum wage in Azerbaijan is AZN 300 per month.

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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. 

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Health Examination Clause

Bonus

13th Month Pay

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

Employee Benefits

Cyprus has a comprehensive social security system that covers the following areas for participating employees:

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

Termination Process

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

Notice Period

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

Severance Pay

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 equalling 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.

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