Country Guide
Employer of Record in Azerbaijan
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Employer Taxes
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Expanding to Azerbaijan? EOR Services Can Help You Hire Globally, Pay Locally, and Expand Effortlessly
We serve as your Employer of Record in Azerbaijan, we offer a reliable, streamlined, and cost-efficient solution for sourcing, employing, and managing local and foreign talent.  When contemplating expanding your business on a global scale, INS Global’s EOR services can enhance your operational efficiency and ensure compliance with all relevant regulations in Azerbaijan. Employer of Record services allow you to effortlessly recruit and manage employees without needing to establish a local entity, all while expertly navigating the intricacies and expenses of international expansion.Â
With INS Global’s premium Employer of Record services accessible in Azerbaijan and spanning more than 160 countries worldwide, you can expertly manage a diverse and globally dispersed workforce from virtually anywhere in the world.Â
Want to have a Team in Azerbaijan TODAY?
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Why Choose an Employer of Record in Azerbaijan Over Company Incorporation?
By acting as the authorized employer, our Employer of Record in Azerbaijan takes on full responsibility for all HR-related functions on your behalf. This efficient process enables you to enter new markets in as little as a week, effectively reducing the time and costs associated with growing your business overseas.Â
Working with an Azerbaijani Employer of Record:
- Saves setup timeÂ
- Lowers overhead costsÂ
- Ensures legal complianceÂ
- Allows you to focus on your business goalsÂ
PEO/EOR vs Company Incorporation
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
5 Advantages of Using an Employer of Record in Azerbaijan
Legal Compliance Assurance
Azerbaijani Employer of Record services with in-depth knowledge of local employment laws can assist you in recruiting and overseeing an international workforce while ensuring strict legal compliance. This proactive approach helps you avoid costly fines and penalties.Â
Lower Expansion Costs
Partnering with an Employer of Record or Professional Employer Organization in Azerbaijan facilitates global growth while significantly reducing expansion expenses. By avoiding the necessity of creating a new entity in the region, you can scale your operations without a substantial increase in overhead costs.Â
Focus on Growing Your Company
An Employer of Record in Azerbaijan takes on the full spectrum of HR-related responsibilities, streamlining your operations and freeing you to concentrate entirely on the international expansion of your business.
Expand Effortlessly
Creating a new company in Azerbaijan can be a protracted process with many complications, often spanning from weeks to months. In contrast, teaming up with a local Employer of Record in Azerbaijan expedites the expansion process, enabling you to enter the Azerbaijani market in less than a week.Â
Manage Your HR Online
INS Global provides a professional way for you to manage your diverse, international workforce online via a modern tool. With a revolutionary cloud-based HR platform, you can easily remotely monitor all your employees.Â
How Does an Employer of Record In Azerbaijan Work?
INS Global’s Employer of Record in Azerbaijan allows your company to expand abroad in just 4 simple steps.  Â
1
We work with you to form a unique expansion plan suited to local regulations.Â
2
Our organization provides the legal entity required to recruit and manage staff.Â
3
We handle the HR-related tasks you require, such as hiring, contract management, and payroll processing to ensure compliance.
4
Your employees focus on your operational goals while we take care of the rest.Â
What is the Difference between PEO and Employer of Record Services in Azerbaijan?
PEO and Employer of Record services in Azerbaijan represent different ways to enjoy many of the same services, with key differences in how those services are provided. Â
A PEO (Professional Employer Organization) handles a wide range of human resources tasks, including payroll management, tax handling, and contract administration. It operates as a strategic HR partner that supports your workforce requirements.Â
An EOR (Employer of Record) shares similarities with a PEO but possesses the legal authority to hire and manage employees on your behalf, simplifying the entire process.Â
With a PEO, the employment contract is made directly between you and the overseas employee, while the PEO firm assists with HR tasks. Conversely, with an Employer of Record, you maintain control over the employment contract, but it is legally formed between the Employer of Record and the employee, adding an extra layer of protection.Â
INS GUIDES
Check Our Labor Law Guides
Labor Law in Azerbaijan
Employment Contracts in Azerbaijan
- Professional employment in Azerbaijan should come with an official letter of employment.Â
- Employers can have a probation period of 3 months in their contracts. Â
- The employment contract should specify its nature and describe the employee’s role.Â
- An employer can end the contract early if the employee violates the conditions of their employment contract.Â
- Employees are entitled to 3 days’ notice during their probation period.Â
- The standard notice period for most workers is set at 2 months.Â
- Severance pay is required for employees in Azerbaijan if they have been employed for more than a year. If the employee has been made redundant, a minimum of 3 months’ pay is required. If they are being let go for other reasons, they are required to receive 1.4 months’ pay for service under 5 years. Â
- This increases to 1.7 months’ pay for service between 5 and 10 years. Over 10 years, the severance pay is 2 months’ pay.Â
Working Hours in Azerbaijan
- Full-time employees generally work 8 hours per day, 40 hours per week.Â
- Part-time employees work 20 hours per week.Â
- Employees are entitled to a higher hourly rate for overtime. This is generally 200% of the normal hourly rate.Â
- e severance pay is 2 months’ pay.Â
Types Of Leave
Annual Leave in Azerbaijan
- Azerbaijan has 17 official national holidays.Â
- Employees are entitled to a minimum of 21 days of paid vacation.Â
- Employees get 2 days of additional leave per year if they have been working for the company for more than 5 years. An additional 4 days for 10 – 15 years of service.Â
Sick Leave in Azerbaijan
- Employees are entitled to 14 days of paid sick leave.Â
- Sick leave is dependent on the employment contract for each company and employee. Â
- Additional time can be taken, but the employer is not required to pay for that leave.Â
Maternity / Paternity Leave in Azerbaijan
- According to Azerbaijani law, female employees are entitled to 126 days of paid leave.Â
- Maternity leave should be taken 70 days prior to the birth of the child and 56 days after.Â
- Maternity pay is calculated based on the average pay over the last 12 months.Â
- Pregnant women with children under the age of 3 cannot be terminated.Â
- Male employees are entitled to 14 days of unpaid leave following the birth of their child.Â
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Tax Laws in Azerbaijan
- Employers in Azerbaijan are responsible for withholding all taxes and social contributions.Â
- Employers contribute 22% towards social security, 0.5% towards unemployment, and 2% towards medical insurance. This totals 24.5%.Â
- Employees contribute 3% towards social security, 0.5% towards unemployment, and 2% towards medical insurance. This totals 5.5%.Â
- The VAT rate in Azerbaijan is set at 18%. Â
- Corporate income tax is set at 20% of the company’s net profit.Â
- Microbusinesses with a turnover below 200,000 AZN qualify for a 75% relief from taxation.
Contact Us Today
Frequently Asked Questions
faqs
Opening a local company in every market is one option, but collaborating with a local Employer of Record in Azerbaijan is simpler and most cost-efficient. Employer of Records come with local expertise and simplify hiring and managing staff on your behalf.Â
An Employer of Record in Azerbaijan handles all kinds of HR-related tasks such as payroll processing, tax compliance, employment negotiation, social security deductions, and more.Â
Establishing a new company abroad can take anywhere from a few months to a year, but with INS Global’s Employer of Record services, you can find staff and expand to new markets in as little as a week.Â
Employer of Record services streamline your expansion plan, and the costs are linked to a percentage of your employee‘s salary.Â
Certainly, working with an Employer of Record in Azerbaijan is an efficient and cost-effective solution that streamlines your expansion plans while keeping a close eye on costs.Â
Salaries are processed on a monthly basis for full-time employees, while part-time workers may receive weekly or bi-monthly payments. Employers are responsible for withholding taxes and social security contributions.Â
While recruitment in Azerbaijan comes with a range of costs, INS Global simplifies remote recruitment, hiring, and staff management, reducing the costs of managing an international workforce.Â
Absolutely, an Employer of Record in Azerbaijan can recruit and hire employees from all regions in Azerbaijan. Additionally, INS Global‘s Employer of Record can help recruit in over 100 countries around the world so you can pursue every opportunity without worrying about payroll integration.Â
Modifications to employment contracts require mutual agreement. An Azerbaijani Employer of Record ensures compliance with local labor laws.Â
Yes, employers in Azerbaijan are responsible for deducting all taxes and social contributions from employee salaries every month.Â
INS Global can help companies of all shapes and sizes. This means that they can help recruit and manage workforces of any size.Â
Severance pay is required for employees in Azerbaijan if they have been employed for more than a year. If the employee has been made redundant, a minimum of 3 months‘ pay is required. If they are being let go for other reasons, they are required to receive 1.4 months‘ pay for service under 5 years. This increases to 1.7 months‘ pay for service between 5 and 10 years. Over 10 years, the severance pay is 2 months‘ pay.Â
In Azerbaijan, you can hire employees for both in-person and remote opportunities, this reduces cost while expanding abroad. Â
Yes! Our recruitment experts have extensive experience in finding top talent globally. We provide support in recruiting, hiring, and managing your workforce, regardless of your location.Â
Azerbaijan observes 17 public holidays, and most employees are entitled to a paid day off. Working on these holidays involves a higher hourly rate. However, these dates can change depending on the year as some are religious holidays as well.Â
Employers must adhere to local labor laws and regulations to avoid costly penalties and fines that can quickly add up. Collaborating with an experienced Employer of Record in Azerbaijan ensures local compliance for a seamless expansion.Â
Absolutely! INS Global facilitates the recruitment and management of an international workforce remotely, making hiring both Azerbaijani citizens and foreigners quick and easy.Â
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.