Azerbaijan
Remote makes employment in Azerbaijan easy. With our localized contracts, easy invoice management, and best-in-class compliance, you can grow your global team with confidence. Note that we can currently employ contractors in Azerbaijan but our employer of record services are not yet live.
- Capital city
Baku
- Currency
Azerbaijani manat (₼, AZN)
- Languages
Azerbaijani
- Population size
10,127,874
Facts & Stats
- Capital city
Baku
- Currency
Azerbaijani manat (₼, AZN)
- Languages
Azerbaijani
- Population size
10,127,874
- Ease of doing business
Very easy
- Cost of living index
30.90 (2021)
- Payroll frequency
Monthly
- VAT - standard rate
18%
- GDP - real growth rate
2.2 (2019)
Covered in epic mountain ranges, vineyards, and over 8,000 rivers, Azerbaijan’s breathtaking natural beauty makes it look like a nation drawn from fantasy romantic literature.
A swathe of skyscrapers across the country’s capital city symbolize the rapid modernization of Azerbaijan over the last two decades. The so-called Land of Fire is a charming country capturing the banks of the Caspian Sea with a fast-growing economy that presents an ideal location for skilled digital nomads.
Any businesses looking for a growing workforce of remote-working professionals will find a growing collection of talent surrounding the capital city metropolis of Baku.
Grow your team in Azerbaijan with Remote
You can pay contractors now in Azerbaijan with Remote in some currencies (talk to an expert now for full details).
Note that we are busy building our own entity in Azerbaijan to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.
To employ in Azerbaijan, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Azerbaijan can get complicated fast, especially without localized expertise.
If you're looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.
In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
Risks of misclassification
Azerbaijan, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Azerbaijan may lead to fines and penalties for the offending company.
Employing in Azerbaijan
Provisions for employee protections and workers’ rights are spelled out within the Labor Code of Azerbaijan which guarantees protections against discrimination based on age, religion, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Azerbaijan.
Minimum wage
The minimum wage is fixed at 300 AZN or $170 per month.
Competitive benefits package in Azerbaijan
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
We are still busy building our own entity in Azerbaijan, but our benefits packages for all countries are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Azerbaijan
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Azerbaijan.
22%
Social Security
0.5%
Unemployment
2%
Mandatory medical insurance
Types of Leave
Employees are entitled to at least 21 days of paid leave annually, with additional days accrued in proportion to the employee’s tenure with the employer’s firm.
5 - 10 years of service: 2 days additional
10 - 15 years: 4 days additional
15+ years: 6 days additional
Employment termination
Termination process
Employers are only permitted to lay workers off with outstanding wages and severance benefits paid off.
Notice period
Prior notice must be provided before termination is scheduled to take effect, with the length depending on the employee’s tenure working with the employer.
Up to 2 years: six weeks’ notice
2 - 5 years: two months’ notice
4 - 15 years: three months’ notice
15 - 25 years: four months’ notice
25+ years: five months’ notice
Severance pay
Under Azerbaijani law, employees are entitled to severance benefits in proportion to their tenure with an employer.
Up to 1 year: one month’s pay
1 - 5 years: four months’ pay
5 - 10 years: seven months’ pay
10+ years: 12 months’ pay
Redundant employees are entitled to at least three months’ severance pay upon termination.
Probation periods
Probation lasts for three months at most during which employee can be laid off with three months’ notice.