According to the World Bank, Azerbaijan’s economy recently grew by 2.2 percent, its best performance since 2014. Given the recent increase in private consumption, the poverty rate is estimated to have fallen in 2019. Inflation remained low in 2020. Azerbaijan’s vast oil reserves attract foreign investment into the country’s economy, reveals a 2021 EY Report; however, owing to the rapid development of the non-oil sector, the share of oil and gas investments in total foreign direct investments has gradually decreased compared with earlier years. Azerbaijan’s business environment score improves moderately, but the country remains at the bottom of the regional ranking, as the pace of reform is slower than in other east European countries. In 2020, Azerbaijan was ranking #34 in the World Bank’s Ease of Doing Business index (Sources: Bloomberg, World Bank and EY).
A trusted professional employment organization with in-depth knowledge of the Azerbaijani market, XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Baku or any other city in Azerbaijan, regardless of the size of your organisation or your industry. Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the Azerbaijani authorities.
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Azerbaijani Manat AZN
Minimum wage in Azerbaijan is 250 AZN.
Daily working hours in Azerbaijan cannot exceed eight hours. Normal weekly working hours cannot exceed 40 hours.
At least 21 calendar days of paid base vacation must be granted to employees
Sick pay during the first 14 days of absence is paid by the employer
Women are entitled to 126 days of maternity leave, starting 70 days before due date and ending 56 days after. In case of multiple births, maternity leave can be extended to 14 additional days after the birth.
Fathers can take up to 14 days leave while their partners are on maternity leave.
An employer is required to send a notification to the employee prior to termination of an employment agreement in the following cases:
Redundancy of employees/staff; Alteration of working conditions; and Failure of an employee to pass the probation period.
The duration of the notice period during redundancy is exclusively based on the employee’s seniority. The notice periods are:
An employee can terminate an employment contract by notifying the employer in writing one calendar month in advance of termination. (Deloitte)
A probation period with a maximum duration of three months is allowed under the Labor Code, except in specific cases defined by the law. (Deloitte)
The standard VAT rate is 18%.
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XML International, one of the best workforce solutions and employer of record services providers for Azerbaijan, supports the set-up and the management of your international workforce for all your activities in Azerbaijan. Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams in Azerbaijan. We give you all the keys to handle you staff in Baku or any city in Azerbaijan. XML’s knowledge of Azerbaijani labour laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in Azerbaijan, navigate all the local complexities and avoid pitfalls.
Among our top priorities, compliance with the Azerbaijani employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in Azerbaijan is aligned with the Azerbaijani tax and social security rules and the latest immigration processes, including visas and work permits.
Here is the list of our core services supporting your activities in Azerbaijan.
Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion into Azerbaijan or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Azerbaijani market.
They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in Azerbaijan without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in Azerbaijan.
XML provides you with everything you need to start doing business in Azerbaijan or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in Azerbaijan in a cost-effective way.
Get started now and make the most of business in Azerbaijan today!
XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.