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Azerbaijan
Your guide to the employment landscape, working customs and local labor laws in Azerbaijan
(The data below is for reference only. You may refer to the official government websites or contact us for updates.)
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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 Cities
Baku, Ganja, Sumqayit
Skills in demand
Administrative jobs, Translators, Marketing specialists, HR

Salary Data
Some of the popular jobs and their monthly salaries in Azerbaijan are listed below:
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.
Public and Provincial Holidays
Leave Information
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.
The probation period followed in Azerbaijan is up to three months.
There are no statutory regulations for the 13th-month pay in Azerbaijan.
Disability and death benefits
Retirement benefits
Compulsory medical insurance
Paid maternity leave
Unpaid paternity leave
Vacation leave
Azerbaijan follows a monthly payroll cycle.
The Azerbaijan minimum wage is 105 Azerbaijani manat per month.
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.
| 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.
| 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 |
| 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.
The major grounds of employment termination in Azerbaijan include:
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:
| 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 |
Foreign employees need a job 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.
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.
The probation period followed in Azerbaijan is up to three months.
There are no statutory regulations for the 13th-month pay in Azerbaijan.
Disability and death benefits
Retirement benefits
Compulsory medical insurance
Paid maternity leave
Unpaid paternity leave
Vacation leave
Leave Policy 
Public and Provincial Holidays
Leave Information
Payroll 
Azerbaijan follows a monthly payroll cycle.
The Azerbaijan minimum wage is 105 Azerbaijani manat per month.
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.
Taxes 
| 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.
| 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 |
| 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:
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:
| 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 job 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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