Summary
Social Security in Azerbaijan consists of pension and invalidity insurance, sickness, maternity and unemployment insurance. Health services do not fall under social security in Azerbaijan.
Details
Contributions
Generally, all foreign employees are subject to social security contributions. The effective contribution rates are 10% for employees and 15% for employers (3% and 22% in the oil and gas sectors – although see below for the exemptions applicable in these sectors). In addition, foreign nationals hired under local employment contracts, and their employers, each have to pay Mandatory Medical Insurance Contributions at around 2% of gross salary, and unemployment insurance of 0.5% each.
Treaties
Azerbaijan has five social security agreements (Turkey, Serbia, Russia, Belarus and Bulgaria) to coordinate the provision of benefits and eliminate double contributions. Most western expatriates in Azerbaijan will be exempt from Azeri social security contributions (see below) and depending on their sending location may not be required to pay social security anywhere.
Exemptions
Foreign employees of businesses in the oil and gas sectors operating under PSAs (Production Sharing Agreements) and HGAs (Host Government Agreements) are exempt from Social Security contributions.
Benefits
The level of benefits available in Azerbaijan is limited and is unlikely to be accessible by foreign nationals without a lengthy period of contributions to the Azeri social security regime.
Social security insights are intended to provide quick and straightforward insights into social security regimes. Always seek professional advice based on actual circumstances before acting.
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