Remote’s guide to employing in

Azerbaijan
azerbaijan flag

With localised contracts, easy invoice management, and best-in-class compliance, you can grow your team in Azerbaijan with confidence. Currently, you can hire and manage contractors in Azerbaijan through Remote, but our EOR services are not yet live.

  • Capital City

    Baku

  • Currency

    Azerbaijani manat (₼, AZN)

  • Languages

    Azerbaijani

  • Population size

    10,127,874

Services available in this country:
Contractor Management
Azerbaijan skyline

Facts & Stats

The city of baku is reflected in the water.
  • 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 symbolise 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 localised 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 Labour 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 practising “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 fulfil 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.

Fair Pricing in Azerbaijan

Contractor Management

Compliantly onboard and pay contractors

US$29

per contractor/month

Start free trial

Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localised contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Global Payroll

Consolidate your multi-country payroll

US$50

per employee/month

Top features

  • Reduce costs by centralising payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labour authority reporting handled for you

HRIS

Manage all of your employees in one place

Free
Sign up

Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app