Azerbaijan

• New Year’s Day
• Martyr's Day
• Women’s Day
• Nowruz
• Victory Day
• Independence Day
• Day of National Salvation
• Armed Forces Day
• Restoration of Independence Day
• Victory Day
• National Flag Day
• Constitution Day
• National Revival Day
• Solidarity Day
• Additional days for Gurban, Eid, and Ramadan

Working Hours

Employees can work 8 hours a day, up to 40 hours a week.

Employees who are 16-18, pregnant, or have certain disabilities can work up to 36 hours a week. Those aged 16 or under are limited to 24 hours a week.

Overtime:

According to the Labour Code, overtime cannot exceed more than four (4) hours during two (2) consecutive working days, and not more than two (2) hours in workplaces with harsh and harmful working conditions.

Overtime work is compensated at 200% of the normal salary rate.

Minimum Wage

Effective 1^st January 2025, the minimum wage is set at 400 Azerbaijani Manat (AZN) per month.

Employee Tax

There are separate tax and social security bandings for oil and gas industry workers and private employees.

Oil & Gas Industry

Monthly income	Tax rate
Up to AZN 2,500	14%
More than AZN 2,500	25% + AZN 350
Social security contribution	3%
Unemployment contribution	0.5%
Mandatory medical insurance contribution	2%

Private Sector Employees

Monthly income	Tax rate
Up to AZN 8,000	0%
More than AZN 8,000	14%
Social security contribution	(3% under AZN 200, 10% over AZN 200) + AZN 6
Unemployment contribution	0.5%
Mandatory medical insurance contribution	(1% under AZN 8,000, 0.5% over AZN 8,000) + AZN 160

Bonuses

There are no statutory bonus schemes in Azerbaijan.

Employment contracts in Azerbaijan must be written (ideally in Azerbaijani). It becomes valid following registration with the Ministry of Labor and Social Protection of the Population.

Fixed-term contracts are allowed up to five years.

Annual Leave

Minimum of 21 days' paid holiday per year. Some professions may be entitled to more than this.

Sick Leave

14 days' paid sick leave. After 14 days, eligible employees can receive social insurance payments if they have a medical certificate.

Parental Leave

• Maternity leave: 18 weeks' paid leave in total, with 70 days taken before and 56 after the birth. Leave may be extended in some circumstances.
• Paternity leave: 14 days' paid leave.

Termination Process

Employers need fair grounds for dismissal. These include:

• Business liquidation
• Redundancy
• Employee lacks the necessary skills (must be declared by a competency body)
• Employee failure to perform duties

Employees can terminate a contract provided they give at least one month's notice.

Severance Pay

Employees are entitled to at least 3 months' severance pay is required. They may be entitled to more, depending on their length of service.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.