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Hire and manage employees in Azerbaijan

As your Employer of Record (EOR) in Azerbaijan, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
July 16, 2025
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Quick facts

Azerbaijan, located at the crossroads of Eastern Europe and Western Asia, has a growing economy primarily driven by its oil and gas industry. The country has invested heavily in infrastructure and modernization, and its employment laws reflect a blend of traditional and modern practices. The labor market is highly regulated, offering strong protections for employees.

Employment Contracts

Employment contracts in Azerbaijan are signed digitally through the Unified Labour and Employment Subsystem (EMAS) using electronic signatures. Contracts can be either indefinite or fixed-term, with the common practice being temporary contracts of up to one year. If a fixed-term contract is not terminated on time, it is automatically extended. After five years, a temporary contract converts into an indefinite one.

Probation Period

The maximum probation period in Azerbaijan is 3 months, though for contracts lasting less than 6 months, the probation period cannot exceed 2 weeks. There are no probation periods for certain categories of workers.

Working Hours

The standard workweek is 40 hours, with 8 hours per day across five days. Employees are entitled to weekends off, and overtime pay applies as per the labor laws.

Vacation Days

Employees are entitled to a minimum of 21 calendar days of paid annual leave. Managers receive 30 calendar days. Additionally, employees with longer work experience are entitled to extra vacation:

  • 2 days for 5-10 years of service.
  • 4 days for 10-15 years.
  • 6 days for more than 15 years.

Unused vacation is compensated upon termination, and vacation pay must be provided no later than 3 days before the start of the leave.

Sick Leave

Employees who are unable to work due to illness must inform their employer and provide a medical certificate to qualify for sick leave compensation. Sick pay depends on the employee's work experience:

  • 60% of salary for employees with less than 8 years of experience.
  • 80% for 8-12 years.
  • 100% for over 12 years.

The employer covers sick pay for the first 14 days, after which social insurance takes over. Sick leave is available for up to 1 year, after which, if a disability is confirmed, the employment contract can be terminated.

Wages and Salary Payment

Wages can be paid once or twice a month depending on company policy. Salaries must be set in Azerbaijani manats (AZN) under the EMAS system, with possible exceptions for foreign currencies expected in the future. The minimum wage is 345 AZN (approximately $200 USD).

Public Holidays

Azerbaijan recognizes 19 public holidays, including:

  • January 1-2: New Year
  • March 20-24: Novruz Holiday
  • May 9: Victory Day over Fascism
  • May 28: Independence Day
  • December 31: Solidarity Day of World Azerbaijanis

Employer Taxes

Employers in Azerbaijan are responsible for several social insurance contributions:

  • State Social Insurance: 22% of salary up to 200 AZN, and 15% for amounts above.
  • Unemployment Insurance: 0.5% of salary.
  • Compulsory Health Insurance: 2% of salary up to 8,000 AZN, and 0.5% for amounts above.

Employee Taxes

Employees pay the following:

  • Personal Income Tax: 14% on income exceeding 8,000 AZN.
  • State Social Insurance: 3% on salary up to 200 AZN, and 10% for amounts above.
  • Compulsory Health Insurance: 2% on salary up to 8,000 AZN, and 0.5% for amounts above.
  • Unemployment Insurance: 0.5% of salary.

Notice Period

During the probation period, the notice period is 3 days for both the employer and employee. After the probation period, the standard notice period for an employee resignation is 1 month, although in specific cases (retirement, relocation, harassment), the employee can resign with just 1 day notice. Employers must provide notice for various termination reasons, including redundancy and misconduct, with specific legal requirements depending on the situation.

Termination and Severance Pay

  • During probation: No severance pay is required.
  • Mutual agreement: Employers and employees can agree on termination terms, including severance pay, depending on negotiations.
  • Expiration of a fixed-term contract: No severance is required unless otherwise agreed.
  • Redundancy: Employers must pay severance, typically equal to one month’s salary per year of service.
  • Other cases: Severance may apply for terminations due to unjust dismissal, disability, retirement, or relocation.
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Frequently
Asked
Questions

What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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