Employer of Record Services (EOR)in Azerbaijan
Azerbaijan, rich in natural resources and experiencing economic growth, offers a wealth of talent across various sectors. However, establishing a presence and hiring local talent in Azerbaijan can present challenges due to complex labor laws and regulations. Truss, as your Employer of Record (EOR), simplifies this process. We handle all aspects of employment—from recruitment and onboarding to payroll, benefits administration, and ensuring full legal compliance. This allows your company to focus on its core business goals while tapping into the Azerbaijani talent pool.
Quick Facts About Azerbaijan
US Dollar
Azerbaijani Manat (AZN)
| Currency | Azerbaijani Manat (AZN) |
| Payroll Frquency | Bi-monthly |
| Capital | Baku |
| Official Language | Azerbaijani |
Payroll + Taxation
PAYROLL CYCLE
In Azerbaijan, payroll is typically processed bi-monthly, with time between payments not to exceed 16 days.
THIRTEENTH-MONTH PAYMENT
Thirteenth-month payments (or annual bonuses) are not mandatory in Azerbaijan. Employers have the discretion to pay bonuses based on company policy or individual performance
INCOME TAX
Employee Income Tax in Azerbaijan is progressive, with rates ranging from 5.5% to 11%, depending on income level.
EMPLOYER COST
The employer cost in Azerbaijan is a flat rate of 22% of the employee’s gross salary.
Minimum Wage + Working Hours
MINIMUM WAGE
The minimum wage in Azerbaijan is 345 AZN per month for a typical 40-hour work week.
WORKING HOURS + OVERTIME
The standard work week in Azerbaijan is 40 hours, typically spread over five days. Certain industries may have a six-day workweek with reduced daily hours.
Overtime work is generally limited to 4 hours per day, 12 hours per week, and 180 hours per year.
Paid Time Off
Employees in Azerbaijan are entitled to a minimum of 21 working days of paid annual leave. Leave entitlement can increase based on years of service. There are also 13 public holidays in Azerbaijan.
- January 1 New Year’s Day
- January 20 Day of National Mourning
- March 8 Women’s Day
- March 20-24 Novruz Holiday
- April 9-10 Eid al-Fitr
- May 9 Victory Day
- May 28 Republic Day
- June 15 National Salvation Day
- June 26 Armed Forces Day
- June 28-29 Eid al-Adha
- October 18 National Independence Day
- November 9 National Flag Day
- December 31 Azerbaijan World Solidarity Day
SICK LEAVE
Employees are entitled to paid sick leave after presenting a medical certificate for workdays missed due to illness for up to 14 days. Afterward, the State Social Protection Fund covers sick leave payments.
PATERNITY LEAVE
Fathers in Azerbaijan are not entitled to paid paternity leave, though they can take 14 days of unpaid leave following the birth of a child.
OTHER LEAVE
Unpaid leave may be granted for specific reasons like education, personal matters, or military service. The specific terms and duration of unpaid leave should be agreed upon between the employer and employee.
MATERNITY LEAVE
Pregnant employees are entitled to 126 calendar days of paid maternity leave, typically starting 70 days before the expected due date. Additional leave may be granted in cases of multiple births or complications. During maternity leave, the Social Security Fund provides benefits to cover a portion of the employee’s salary.
Termination
TERMINATION PROCESS
The termination process in Azerbaijan depends on the type of employment contract and the reason for termination. Notice periods and severance pay entitlements are typically outlined in the contract or collective agreement.
NOTICE PERIOD
Notice periods vary based on several factors, including the reason for termination and the employee’s length of service. Employees are required to provide a minimum of one month’s notice, regardless of tenure.
SEVERANCE PAY
Severance pay may be required in certain termination scenarios, such as redundancy or employer-initiated termination without cause. The amount of severance pay typically depends on the employee’s length of service and salary. Those terminated due to redundancy, are entitled to 3 months’ severance at minimum.
PROBATION PERIOD
Employment contracts can include a probationary period, usually lasting up to three months. During this period, either the employer or the employee can terminate the contract with shorter notice than would typically be required.
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