Azerbaijan
Min. wage
(x12 payments)
₼400 /mo
About the minimum wage
Employer tax
~17.5%
Understand employer tax
Annual leave
21 days
Learn about annual leave
Notice period
2-9 weeks (by tenure)
Termination and notice info
Updated
Sep 2026
Default. Termination only on grounds exhaustively listed in the Labour Code, with tenure-based notice and severance for redundancy
Permitted up to 5 years only where the nature of the work justifies it; otherwise deemed indefinite.
Overtime paid at 200%, limited to 4 extra hours on no more than two consecutive days
3 days' written notice by either party during probation
Company directors, statutory officers and roles requiring state licenses generally cannot be hired under the EOR model in Azerbaijan
2026 non-oil private-sector regime: social insurance 22% on first AZN 200 and 15% on the remainder (up to AZN 8,000), plus 0.5% unemployment and 2% health insurance
Social insurance 3% on first AZN 200 and 10% on remainder, plus 0.5% unemployment and 2% health insurance. From 2026, progressive income tax of 3-14% applies on top.
In addition to statutory leave, employees are entitled to the following statutory benefits:
Employers are required to make contributions to social security programs on behalf of their employees. Benefits derived from social security are:
Employers must carry compulsory insurance against occupational accidents and diseases, which pays benefits for work-related injury on top of state social insurance.
Statutory severance applies on redundancy and scales with tenure: 1x average monthly salary for under 1 year of service, 1.4x for 1-5 years, 1.7x for 5-10 years and at least 2x for over 10 years. The employer may pay a lump sum in lieu of notice.
There is no statutory 13th or 14th salary in Azerbaijan; year-end bonuses are discretionary and set by contract or company policy.
P.S. our team speaks multiple languages and we'd love to chat in your preferred language if requested.
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 are paid on time. 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).
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.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.
