Employer of Record in Azerbaijan: what one employee really costs

Questions people ask before booking a demo

What does an employer pay on top of salary in Azerbaijan in 2026?

For a private employer outside oil and gas, which is what an EOR provider's local entity is: social insurance of 22% on the first AZN 200 a month, 15% from AZN 200 to AZN 8,000 and 11% above; medical insurance of 2% up to AZN 2,500 a month and 0.5% above; unemployment insurance of 0.5%; and occupational accident insurance of 0.2% for office staff. At the US$28,000 example, about AZN 3,967 a month, that comes to about 17.5% of gross, or roughly US$408 a month.

What changed for Azerbaijani payroll on 1 January 2026?

Law No. 297-VIIQD of 9 December 2025 did three things for the non-oil private sector. It added an 11% employer band for social insurance above AZN 8,000 a month, where the rate had been 15%. It moved the medical insurance threshold from AZN 8,000 down to AZN 2,500, so the combined medical rate between those two figures fell from 4% to 1%. And the seven-year income tax privilege introduced in 2019 ended, replaced by 3% up to AZN 2,500 in 2026, rising to 7% by 2028. The first two lower the employer's bill; the third lowers the employee's take-home pay.

What does one engineer cost per month through an EOR in Azerbaijan?

At the US$28,000 example: US$2,333 of salary, about US$408 of statutory employer charges, and the provider's fee. With a published fee of US$599 a month that is about US$3,341 a month in total; with a US$199 fee it is about US$2,941. Change the salary or the provider in the calculator above and every line recomputes, including the bands, which move the employer's rate as the salary changes.

Is a software engineer entitled to 21 or 30 days of annual leave?

30 calendar days when the contract names a specialist post. Article 114(2) of the Labour Code sets a floor of 21 calendar days, and 114(3)(b), reworded by Law No. 332-VIIQD of 30 December 2025, gives 30 to employees classed as managers or specialists in the unified tariff-qualification reference books. The book common to all sectors, approved by the Labour Ministry in 2005 and applied whatever the employer's form of ownership, lists the engineer-programmer and the engineer under specialists. A job title the book does not list is not settled by it, so check the post named in the contract. Public holidays add 19 non-working days under article 105(2), counting five days for Novruz and two each for Qurban and Ramazan, plus 20 January under article 106; a holiday that falls on a weekend moves to the next working day.

What probation, notice and severance apply in Azerbaijan?

Probation is capped at three months under article 51(1), or two weeks on a contract of up to six months, and either side can end it on 3 days' written notice. On a redundancy, article 77 sets notice by length of service, from at least 2 calendar weeks under one year to 9 weeks beyond ten years, and severance from one month's average pay to at least two months. With the employee's consent the notice can be paid out instead, at 0.5 to 2 months' pay. An employee resigning gives one calendar month.