Baku: Azerbaijan is set to change the rate of compulsory state social insurance contributions for employees earning more than 8,000 manats per month, starting next year. This adjustment, which affects employees in the non-oil and non-state sectors, was reflected in a proposed amendment to the Law on Social Insurance discussed during a session of the Milli Majlis.
According to Azeri-Press news agency, since January 1, 2019, employees in these sectors have been contributing 3% of their monthly income up to 200 manats, with employers contributing 22%. For incomes exceeding 200 manats, employees have been paying 6 manats plus 10% on the amount over 200 manats, while employers contributed 44 manats plus 15% on the excess.
The amendment, effective January 1, 2026, stipulates that contributions for monthly incomes up to 200 manats will remain unchanged. For incomes between 200 and 8,000 manats, employees will continue to pay 6 manats plus 10% on the excess, and employers will contribute 44 manats plus 15% on the excess.
For incomes exceeding 8,000 manats, starting next year, employees will pay 786 manats plus 10% on the amount over 8,000 manats, while employers will contribute 1,214 manats plus 11% on the excess. This will result in a total social insurance contribution rate of 21%.
Following discussions, the draft law was voted on and passed on its third reading.