As you expand globally, there are many common questions you should ask yourself. For example, will you hire a local team or bring in international employees? Should you outsource payroll or establish your own internal payroll? Finally, what kind of supplemental benefits will you provide to keep employees happy in their positions?
G-P can help answer these questions and more with our Employer of Record (EOR) solutions. In addition to helping you establish your Azerbaijan benefits management plan, we can mitigate the risk involved with expanding. You won’t have to learn Azerbaijan’s compensation laws or figure out what statutory benefits to provide. Our team of HR and legal experts will ensure your expansion journey is compliant and easy for greater peace of mind.
Azerbaijan compensation laws
Azerbaijan compensation laws include a mandated minimum wage of AZN 345 per month for unqualified employees (as of January 1, 2023). Your team members are also entitled to overtime pay per your employment contract or any Collective Bargaining Agreement (CBA).
The standard working week is 40 hours over 5 or 6 days. Work on off-days or Saturdays, Sundays, a mourning day, or a public holiday count as overtime.
Guaranteed benefits in Azerbaijan
Azerbaijan has 15 public holidays, 3 of which are multi-day celebrations that employees should receive guaranteed days off for. All employees should also receive at least 21 days of paid vacation, and some specialists or managers should receive 30 days of leave. Another statutory benefit is sick leave, partly covered by State Social Insurance.
There is no limit for sick leave per year. If a professional has been out sick for more than 6 consecutive months due to the same illness or is regularly out sick over a period of 12 months, they must receive an examination by the Medical and Social Expert Commission. If the commission confirms the employee’s inability to work, the employer is allowed to terminate the employee.
The country has an extensive maternity leave policy that includes a total of 126 days of paid maternity leave. The State Social Protection Fund pays for maternity leave equal to 100% of the employee’s gross average monthly earnings over the last 12 months. Fathers can take 14 days of unpaid paternity leave after the birth of a child.
Azerbaijan benefits management
In addition to guaranteed benefits, companies should include other supplemental benefits to their Azerbaijan benefits management plan to drive employee retention. Many employers choose to give bonuses, but the structure varies by company. Others offer private medical insurance to supplement the compulsory medical insurance.
Restrictions for benefits and compensation
The biggest restriction companies face regarding benefits and compensation is the incorporation process. Companies must have a legal entity in Azerbaijan to add employees to their team and give them the right compensation and benefits.
If you don’t have the time or expertise to establish a subsidiary, G-P can help.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.