* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Azerbaijani Manat (â‚Ľ)



Employment Cost


Annual Leave

21 days

In-demand Specialties*
Engineering Services , Back-Office Service , Customer And Technical Support

The Ultimate Guide to Hiring Employees in Azerbaijan

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Azerbaijan

Employing in Azerbaijan requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Azerbaijan with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Azerbaijan quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Azerbaijan, situated in the Caucasus region, boasts stunning landscapes and a growing pool of remote work talent. Its advantageous geographic location, excellent education system, and thriving economy make it an ideal destination for hiring remote workers.

A significant portion of Azerbaijan's economy is driven by oil and gas production. The country is a particularly good choice for energy companies looking to expand. Azerbaijan also has considerable potential within the wind and solar industry, with governmental plans to expand the country’s renewable energy sector.

Over the past few years, Azerbaijan has considerably invested in education; most notably in science and technology. This has led to a growing number of qualified professionals available for employment.

Azerbaijan is well known for its favourable business climate, with the government actively promoting foreign investment and economic diversification.


Fundamental Aspects of Employment in Azerbaijan

Written contracts are a legal requirement for Azerbaijan employees. While the law does not make it mandatory for contracts to be in the Azerbaijani language, it is common practice.

Probationary Period in Azerbaijan

In Azerbaijan, the standard probation period is up to 3 months.

Working hours in Azerbaijan

Standard working hours are set for employees over the age of 18 at no more than 8 hours a day and 40 hours per week, with a working week set at five working days.

Overtime in Azerbaijan

Any overtime is typically compensated with additional pay or time-off in lieu, as determined by the employment contract or collective agreement.The maximum allowable overtime is usually limited to 4 hours per day and 180 hours per year.

Navigating Key Aspects of Payroll in Azerbaijan

Azerbaijan has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Azerbaijan

1 January - 31 December is the 12-month accounting period that businesses in Azerbaijan use for financial and tax reporting purposes.

Payroll Cycle in Azerbaijan

The payroll cycle in Azerbaijan is usually bi-monthly, with employees being paid intervals between payouts cannot exceed 16 days..
2.20 AZN p/h

Minimum Wage in Azerbaijan

The minimum wage for employees in Azerbaijan is typically 2.20 AZN per hour, amounting to ~345 AZN per month for a typical 40 hour work week.

Minimum wages and salaries in Azerbaijan

As of 2023, the minimum wage in Azerbaijan is AZN 345 per month.

Bonus Payments in Azerbaijan

A 13th salary is not a requirement in Azerbaijan. Employers can pay it as a benefit or bonus for their employees.

Comprehensive Overview of Employment Taxes in Azerbaijan

Understanding the tax obligations for both employers and employees is crucial when operating in Azerbaijan's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Azerbaijan.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 22.00% on top of the employee salary in Azerbaijan.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Azerbaijan, the typical estimation for employee payroll contributions cost is around 5.5 - 11.5 %.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Azerbaijan's individual income tax ranges from 0% to 14% with progressive rates. Initially, there's a distinction in tax rates between private sector and oil/gas sector employees for 7 years, after which they both converge to the same rate as the oil/gas sector.

Tax Rate Income Bracket

Pension in Azerbaijan

Some employers provide employees with retirement plans or pension schemes to supplement the mandatory state-provided pensions.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Azerbaijan tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Azerbaijan

When it comes to terminating employment in Azerbaijan, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

The major grounds of employment termination in Azerbaijan include:

  • Initiation by either one of the parties involved in the contract
  • Change in ownership
  • Mutual consent
  • Change in terms and conditions
  • Employment contract expiration
  • Cases relating to violations of job description
  • Prison sentence for employee

Notice Period

In Azerbaijan regardless of tenure, employees are required to provide a minimum of one month's notice. However, the contractual notice period can be extended up to six months. The employer's standard notice period is also contingent upon the employee's length of service, as followed:

  • 2 years service or less: 6 weeks’ notice
  • Between 2 to 5 years’ service: 2 months’ notice
  • Between 4 to 15 years’ service: 3 months’ notice
  • Between 15 to 25 years’ service: 4 months’ notice
  • More than 25 years’ service: 5 months’ notice.

Severance Pay

Employees terminated due to redundancy are entitled to a minimum of 3 months' severance pay. Severance pay, in general, varies based on the length of the employee's tenure:

  • 1 years’ service or less: 1 month salary
  • Between 1 to 5 years’ service: 1.4X the monthly salary
  • Between 5 to 10 years’ service: 1.7X the monthly salary
  • More than 10 years’ service: 2X the monthly salary

Annual Leave Entitlements and Company Policies in Azerbaijan

The annual leave entitlement in Azerbaijan is 21 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Azerbaijan

There are 13 public holidays in Azerbaijan.

Holiday Date

Paid Time Off in Azerbaijan

Maternity Leave in Azerbaijan

Paternity Leave in Azerbaijan

Sick Leave in Azerbaijan

Parental Leave In Azerbaijan

Azerbaijan's Benefits Built Into Playroll

Competitive benefits package in Azerbaijan

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Azerbaijan's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Azerbaijan

Make your benefits package in Azerbaijan a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Short-Term Sickness Insurance
  • Long-Term/Disability Insurance
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Azerbaijan

Playroll allows you to provide localized benefits for employees in Azerbaijan within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Azerbaijan create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Azerbaijan

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Azerbaijan.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

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