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$249/month
$49/month
2% of gross salary / month
Azerbaijan is a developing country between Russia and Iran, known for its abundant oil and natural gas. The former Soviet state gained independence in 1991 and has earned the nickname “Land of Fire” for its natural gas-burning fire on a mountain in Absheron. Despite the pandemic affecting tourist activity in 2020, year-on-year international visitors have surged by 102%. Azerbaijan’s GDP is set to rise by 28%, reaching almost 9 billion euros, owing to its tourism sector alone. The average monthly wage in Azerbaijan totals AZN 925 (approximately $544), and many people work well into retirement. If you are ready to adopt a workforce in Azerbaijan, now is the right time to hire in the country.
Hire in Azerbaijan, and pay employees through our platform or app.
Our Azerbaijan EOR solution is the most affordable on the market.
Fast Azerbaijan onboarding, hire in as little as 24 hours.
We draft compliant Azerbaijan labor contracts.
We manage all Azerbaijan mandatory benefits.
It doesn’t stop with Azerbaijan — we hire employees globally.
An Azerbaijan employer of record, or EOR, can help businesses establish and expand their workforce in the region. An EOR works with foreign companies that are unable to establish or register a business in a country where they would like to hire employees. The EOR in Azerbaijan represents your company, acts on your behalf as a legal entity, and can undertake various HR tasks, including onboarding, offboarding, and overseeing employee contracts. The purpose of an Azerbaijan EOR is to maintain compliance with the labor laws in the country so you can hire the best talent without the risk of fines or lawsuits.
It’s easy to get confused with the terms “EOR” and “PEO.” A PEO is known as a professional employer organization, and they don’t have the same legal capacity as an EOR. Sometimes, a PEO is suited to a business that is looking for an HR service to manage administrative tasks. While both a PEO and an EOR can administer benefits and manage payroll, the former cannot act independently and is not considered a legal entity. An EOR can take over tax requirements and adherence to employment regulations, helping to make important staff decisions.
Unless you speak the national languages of Azerbaijani, Russian, and Armenian and are familiar with the local labor laws, it’s better to hire an Azerbaijan EOR who will guide you every step of the way. An EOR in Azerbaijan aids international businesses that want to hire employees quickly without the cost or hassle of setting up a registered entity. The EOR is well-versed in the local languages, culture, and, most importantly, the employment rules and regulations. They can negotiate contract terms and conditions on your behalf, and they manage various HR operations within the confines of the law. Not only will your workforce be operational efficiently, but your company will save on the costs of hiring multiple services or registering their own business in the country.
Horizons stands out as a Azerbaijan EOR through:
An Azerbaijan EOR is responsible for keeping you compliant with the national labor laws. They help businesses hire employees, and they act on your behalf by securing employment contracts, negotiating benefits, and assisting with a confident and satisfied workforce. Discover the following services provided by a professional EOR in Azerbaijan:
The Labor Code of the Republic of Azerbaijan was adopted by the Law of Azerbaijan Republic on February 1, 1999. It constitutes the regulations that businesses must abide by when hiring employees, drawing up contracts, and administering benefits. A closer look at local labor law can safeguard the company and its employees.
Most employees in Azerbaijan sign a permanent contract or a standard employment agreement. Here, there is no end date to the agreement, but it requires consistent and clear communication concerning employee benefits, termination procedures, severance, and wages. The minimum wage in Azerbaijan is AZN 345 per month.
Another common type of contract is a fixed-term contract, in which staff work for a predetermined period. This can include temporary or contract workers.
All contracts must be presented in written form and signed by the employee. It is preferable to create an employment contract in the national language of Azerbaijani, although this is not a mandatory requirement. All new employees, whether on a permanent or fixed-term contract, must receive a probation period of 3 months.
No probationary period.
At completion of the project.
Not applicable
Typically up to 3 months
30 days (minimum and maximum allowed by labor law)
Not explicitly required unless specified in the contract or collective agreement.
Typically up to 3 months
30 days (minimum and maximum allowed by labor law)
Not explicitly required unless specified in the contract or collective agreement.
The standard workweek in Azerbaijan is 5 days at 8 hours per day. According to Art. 89 of the Labour Code of Azerbaijan, a work week must not exceed 40 hours. All workers must receive at least 2 days of rest per week. If employers require a 6-day workweek, they must keep track of the total number of hours worked, which cannot exceed 7 days.
150% of the standard hourly rate
200% of the standard hourly rate
200% of the standard hourly rate
Azerbaijan upholds the following international and traditional public holidays:
| Date | Holiday name |
|---|---|
| 1 Jan 2025 | New Year’s Day |
| 2 Jan 2025 | New Year’s Holiday |
| 20 Jan 2025 | Martyrs’ Day |
| 8 Mar 2025 | Women’s Day |
| 2 Mar – 24 Mar 2025 | Nowruz |
| 30 Mar – 1 Apr 2025 | Ramazan Bayramı Holiday |
| 9 May 2025 | Victory Day over Fascism |
| 28 May 2025 | Republic Day |
| 5 Jun – 8 Jun 2025 | Qurban Bayramı |
| 15 Jun 2025 | Day of National Salvation of the Azerbaijani People |
| 26 Jun 2025 | Azerbaijan Armed Forces Day |
| 8 Nov 2025 | Victory Day of the Republic of Azerbaijan |
| 9 Nov 2025 | State Flag Day of Azerbaijan |
| 12 Nov 2025 | Constitution Day |
| 17 Nov 2025 | National Revival Day |
| 31 Dec 2025 | World Azerbaijanis Solidarity Day |
The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:
no leave entitlement
21 days of paid leave annually
21 days of paid leave annually
21 days of paid leave annually
Employees in Azerbaijan are entitled to 14 days of sick leave per year. For workers protected by state social insurance, they can extend their leave within reasonable limits provided a medical certificate is issued. If the employee cannot return to work after 4 months, their contract may be terminated unless they sustained an injury on duty or have taken maternity leave.
(percentage of regular wages owed to the employee)
no leave entitlement
14 days of paid leave annually
14 days of paid leave annually
14 days of paid leave annually
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
Unpaid (unless specified in the employment contract or under special circumstances)
In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.
All pregnant women have the right to 126 days of maternity leave, fully paid by the State Social Protection Fund. They can take 70 days off before the arrival of their baby and the remaining 56 days thereafter.
Azerbaijani workers must receive at least 21 days of yearly leave, which is mandatory. For high-level positions, including management and specialists, annual leave is extended to 30 days in the country. However, employees do not receive the benefit of annual leave for their first year of working with the company.
The termination of an employment contract in Azerbaijan must follow strict legal practices to protect the rights of workers. Employers who fail to adhere to these regulations can face hefty penalties, including fines.
If an employee’s position has become redundant, they must receive 3 months’ full pay upon terminating their contract.
Some of the most common reasons to end an employment contract include:
Employees generally receive a severance of two months’ salary if their contract is terminated due to medical reasons or changes in employment conditions. Workers must be paid their unused leave when a contract ends.
Social security contributions are primarily for the purpose of funding pensions, social insurance, and other social benefits. These contributions are mandatory and are used to fund the social security system, which provides benefits such as pensions, disability benefits, and various other social insurance benefits.
Employers are required to make social security contributions for all employees, including foreign employees, at the same rates as for local employees.
Azerbaijan has social security agreements with some countries to avoid double payment of social security contributions. These agreements typically allow foreign workers to remain covered under their home country’s social security system while working in Azerbaijan, and vice versa.
The individual income tax system in Azerbaijan is structured to ensure that both residents and non-residents contribute to the nation’s revenue based on their earnings.
For residents, they pay around 14% to 25% depending on their income. Non-residents are taxed at a flat rate of 14% on their Azerbaijan-sourced income.
Health insurance in Azerbaijan primarily revolves around the mandatory health insurance system, which aims to provide comprehensive healthcare coverage to all citizens and residents. Contributions are shared between employers and employees, ensuring that a wide range of medical services are accessible and affordable.
MHI covers a wide range of medical services, including primary care, specialized care, emergency services, surgeries, diagnostic services, and essential medicines.
In addition to mandatory health insurance, residents can opt for private health insurance plans. These plans offer additional services and benefits not covered by MHI, such as private hospital care, advanced treatments, and wider choice of healthcare providers.
The Azerbaijan Labor Code has a payment cycle in which a monthly salary is paid in two parts: one as an advance and the second as the remaining salary. These payments must be made within 16 days of each other.
Annual salaries are paid monthly.
Azerbaijani employees are not entitled to a 13-month salary, but employers generally offer bonus pay as an incentive based on job roles.
Medical insurance is a statutory benefit as of January 2021.
In Azerbaijan, social security contributions became mandatory as of January 2019. Employers contribute 2% of an income of AZN 200, or for amounts above AZN 200, a contribution of AZN 44 + 15% of the sum above AZN 200 is required.
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An EOR in Azerbaijan is knowledgeable about local labor laws, and they will closely follow these regulations when assisting businesses with various employment and HR processes. These include mandatory benefits, paying the minimum wage, administering payroll, and presenting a signed and sealed contract of employment. Because the Azerbaijan EOR is located in the country, they are recognized as a legal entity and are held responsible for compliance with the Labor Code of the Republic of Azerbaijan.
An EOR in Azerbaijan will streamline administrative HR tasks, hire employees faster, and guide you on labor laws. They will break down the language and cultural barriers that make it challenging to find the perfect match for the job role and corporate culture. For many international businesses interested in hiring in Azerbaijan, the prospect of registering a business and learning the labor laws makes it impractical and far too expensive. Using an EOR will connect you to talented employees with the skills and experience to match the position.
Holiday Schedule in Azerbaijan [2025]
