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Country hiring guide

Hiring in Azerbaijan 🇦🇿

Oil-driven economy diversifying, with a growing non-oil and tech workforce. Employer on-costs run ~22-25% on top of gross salary. Here is what to know before your first Azerbaijan hire.

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OverviewFacts & statsEmployer costsLeaveTermination
Capital cityBaku
CurrencyAzerbaijani manat (AZN)
LanguagesAzerbaijani
Population~10.3 million
Payroll frequencyMonthly; no mandatory 13th salary
VAT standard rate18% (VAT/EDV)
Employer burden*~22-25% of gross
TGTC flat EOR fee$699/mo · Tier C
Overview

Employing in Azerbaijan

Employment in Azerbaijan runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.

Minimum wage

  • AZN 400/month (2025)

Payroll cycle & extra pay

  • Monthly salary payments
  • No mandatory 13th salary

Public holidays

  • ~15 paid public holidays

Onboarding & probation

  • Probation up to 3 months
  • Written contract required
Employer costs

What you pay on top of salary

Employer on-costs in Azerbaijan run ~22-25% of gross salary. Employer pays 22% social insurance (15% above AZN 8,000) plus small levies.

Employer contribution*Rate
Social insurance (DSMF)22% up to AZN 8,000; 15% above
Unemployment insurance0.5%
Compulsory medical insurance2% up to AZN 8,000; 0.5% above

Passed through at cost

These statutory costs are paid at cost on top of TGTC's flat $699/mo fee, so you always see the real employer cost, not a marked-up percentage.

Employee-side taxes

Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.

Types of leave

Statutory leave in Azerbaijan

Annual leave

  • Minimum 21 calendar days paid

Maternity & parental leave

  • 126 days paid (70 before, 56 after)
  • State Social Protection Fund pays

Sick leave

  • Paid sick leave via social fund*

Other leave

  • Additional leave by service length
Employment termination

Ending employment in Azerbaijan

Notice

  • 2 weeks minimum; rises with service
  • Up to 9 weeks after 10 years

Severance

  • 1 month, rising to 2 months by tenure

Probation

  • Up to 3 months; 3 days notice

Contractor risk

  • Misclassification risk; strict labour code

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Hire in Azerbaijan without setting up an entity

TGTC employs your hire in Azerbaijan on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $699 per month.

Get a Azerbaijan quote