Hire and pay employees in
Azerbaijan, hassle-free

With Deel, your business can easily hire employees in Azerbaijan. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Azerbaijan is 6 days with Deel.

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Onboard, pay and manage employees in Azerbaijan with Deel.

Usually, to hire in Azerbaijan, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Azerbaijan quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Azerbaijan
built right in

Deel allows you to provide localized benefits for employees in Azerbaijan within minutes. All in one manageable online dashboard.

Public Health Insurance
Social Security
Unemployment Insurance
Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Azerbaijan

Navigate the tabs below to learn everything you need to know about hiring an employee in Azerbaijan

Minimum Wage Requirements

The minimum wage is AZN 300 per month.

Individual Income Tax

The individual income tax ranges from 0% to 14%. Income tax is calculated according to progressive rates.

Payroll Cost

The employer cost is generally estimated at 16-24.50% of the employee's salary.Unemployment Insurance - 0.5%

Social Insurance Contribution:
- 22% for the portion of salary up to AZN 200/month, plus
- 15% for the portion of salary over AZN 200/month
Mandatory Health Insurance:
- 0.5% for the portion of salary up to AZN 8,000/month, plus
- 2% for the portion of salary over AZN 8,000/month

+One-off Mandatory Wet Ink Employment Agreement Handling Fee - 80 USD

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day and 40 hours per week. The standard work week is from Monday to Friday.

Overtime payment is mandatory and not included in the salary and paid on top of the monthly salary. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 2 hours of overtime a day. For additional hours, employees are paid 200% of the hourly rate.

Maternity Leave

Employees who have worked for six consecutive months are entitled to 126 days of paid leave. 70 days must be taken before the child's birth. The employee will receive 100% of their average salary from the last 12 months during this period, and Social Security will be responsible for this pay.

Paternity Leave

Employees are entitled to 14 days of paid paternity leave. The employee will receive 0% of the salary during this period.

Parental Leave

In Azerbaijan parental leave is complex. Employees are entitled to different levels of leave for different circumstances:

Mothers with more than 2 children under the age of 16 are entitled to 2 additional days of paid leave a year.
Mothers with more than 3 or more children under the age of 16 are entitled to 5 additional days of paid leave a year.
Mothers or single fathers with a child under the age of 16 are entitled to 14 days of unpaid leave.
Females adopting children under the age of 2 months are entitled to 56 days of partially paid leave from social security.

Sick Leave

Sick leave in Azerbaijan is complex. Employees who have worked for at least six months are entitled to paid sick leave for up to 365 days. This leave is paid at different rates and by different payers depending upon length of service, how long they are sick and type of sickness.

Termination Requirements

Contracts can be bilingual. They must be in writing and signed by both parties.

A contract must include:

name
start date
length of the employment
job description
termination conditions
salary
working hours
holidays

Notice Period

The minimum notice period is 30 days and will be increased according to the length of the employment.

45 days if the length of service is less than 2 years
60 days if the length of service is less than 5 years
90 days if the length of service is less than 15 years
120 days if the length of service is less than 25 years
150 days if the length of service is more than 25 years

If an employee resigns, they must also provide 1 month of notice regardless of the length of service. However, more can be agreed upon agreement between the two parties.

Severance for Employees

Severance pay will depend on the length of service and type of termination.

Redundancy: 90 days of salary
Standard termination: 30 days of salary for services less than a year.
Standard termination: 120 days of salary for services between 1-5years.
Standard termination: 210 days of salary for services between 5-10years.
Standard termination: 60 days of salary for services greater than 10 years.

Paid Time Off

Both full-time and part-time employees are entitled to 21 working days of paid time off (PTO) a year. PTO and aural rate varies depending on the length of services. Employees are eligible for annual leave after 1 month of work. Certain classifications of employees would only be entitled to 15 working days of PTO.

The length of service is the seniority of an employee working, regardless of the employer. The length is confirmed with Social Security, and the information submitted as the worker's history.

Public Holidays

Azerbaijan celebrates 15 national holidays over 22 days.

National public holidays include:

New Year's Day - 2 days
Women's Day
Victory Day
Republic Day
Day of National Salvation of the Azerbaijani People
Armed Forces Day of the Republic of Azerbaijan
National Independence Day
Victory Day
National Flag Day of the Republic of Azerbaijan
Constitution Day
National Revival Day
Day of Solidarity of World Azerbaijanis
Novruz holiday – 5 days
Eid al-Adha – 2 days
Eid al-Fitr – 2 days

Onboarding

Onboarding takes 6 business days. Documents must be completed 1 day before the start date.

Employment Contract Details

Contracts can be bilingual. They must be in writing and signed by both parties.

A contract must include:

name
start date
length of the employment
job description
termination conditions
salary
working hours
holidays

Probation Period

Standard probationary period is 90 days.

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Hiring in Azerbaijan, hassle-free

With Deel, your business can easily hire employees in Azerbaijan with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Azerbaijan and 150+ countries.

Starting at 599 USD

Management fee

16-24.50%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Azerbaijan?

View our Employee Cost Calculator

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Hire and pay employees in Azerbaijan, hassle-free