Request Info
Employer of Record (EOR) in Azerbaijan

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Azerbaijan Introduction

Located on the border of Europe and Asia, Azerbaijan became the world's first secular, democratic, Muslim-majority nation in 1918. While it’s classified as a developing country, Azerbaijan has a high rate of economic development. In Azerbaijan there is a standard probation period of 3 months, during which either party can cancel the contract with 3 days notice.

Employment Terms

The minimum wage in Azerbaijan is 300 AZN per month. They have standard working hours of 40 hours per week and 8 hours per day. In certain industries, the employer can impose a 6-day work week where daily working time limits may not exceed 7 hours (if the weekly total is 40 hours), 6 hours (if the weekly total is 36 hours), or 4 hours (if the weekly total is 24 hours).

Employees cannot work overtime for more than 2 consecutive days, or over 4 additional hours. If the salary is based on time worked, the overtime amount paid per hour will be calculated at 200% of the salary. If the salary is based on the production of work, overtime must be paid at an amount no less than the regular hourly wage of employees in the same pay scale.

Types of Leave

Parental Leave

Pregnant employees are eligible for 126 days of paid maternity leave, 70 days need to be taken before the expected birth date, and 56 days after. In the case of a difficult birth the maternity period can be extended for additional 14 days. Maternity leave is paid for by the State Social Protection Fund at 100% of the regular salary.

Fathers are eligible for 14 days of unpaid paternity leave after a child’s birth, and female employees adopting children under 2 months of age are entitled to 56 calendar days of leave.

Sick Leave

Employees can take a paid sick leave if they submit medical documentation. The first 14 days of the sick leave are paid by the employer, and any days after are paid by the State Social Protection Fund.

Paid Leave

Azerbaijan has 24 public holidays, and employees are entitled to a minimum of 21 days of paid time off per year.

This amount increases with the number of years of employment within a company:

  • 5-10 years = Additional 2 days of leave per year
  • 10-15 years = Additional 4 days of leave per year
  • 15+ years = Additional 6 days of leave per year

An employee’s vacation leave can be split into multiple periods, but one of the vacation periods must be 2 weeks long.

Termination Process


Termination of an employment contract in Azerbaijan follows a strict process and must be managed in accordance with the Employees Act (Angestellten-Gesetz).

An employee’s final payment must be delivered before the final day of employment, and the resignation agreement should be registered with a notification to the Ministry of Labour and Social Protection of Population, providing details of the role and salary of the employee being terminated.

Notice Period

All employees must give at least one month of notice, no matter how long their service to the company. The standard notice that an employer must give to an employee depends on the employee’s length of service:

  • 0-2 years = 6 weeks notice
  • 2-5 years = 2 months notice
  • 4-15 years = 3 months notice
  • 15-25 years = 4 months notice
  • 25+ years = 5 months notice

If you are terminating an employment agreement due to downsizing, 2 months of notice is required. During this 2-month period the employee is allowed to take one day of paid time off per week for finding new employment.

Severance Pay

In general, severance pay after termination varies depending on the length the employee has been employed at the company:

  • 1 year or less = 1 month salary
  • 1-5 years = 1.4 times the monthly salary
  • 5-10 years = 1.7 time the monthly salary
  • 10+ years = 2 times the monthly salary

In addition to severance pay, a termination payment of 2 months salary must be given if: terms of employment were changed, employee is called for Military Service, employee can no longer perform their duties due to a permanent disability. For employees who are terminated due to redundancy, a minimum of 3 months of severance pay is required.

Additional Information


Azerbaijani Manat (AZN)
Capital City:
10.3 Million
Cost of Living Rank:
VAT (Valued Added Tax):
Employer TaxES

Oil and Gas Industry

★  22% - Social Security

★  0.5% - Unemployment

★  2% - Medical Insurance

Private Sector

★  15% - Social Security

★  0.5% - Unemployment

★  1% - Medical Insurance

Get Started in 3 Steps


Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.


Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.


Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 180+ countries
How Remofirst employs in Azerbaijan

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Azerbaijan get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Azerbaijan are paid on time in Azerbaijani Manat (AZN). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Azerbaijan, they can speak with our customer support team to get answers from our team of experts.