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Azerbaijan Compensation & Benefits

Any global expansion includes many questions that you have to answer. For example, will you hire a local team or bring in foreign employees? Will you outsource your payroll or complete your own internal payroll? Finally, what kind of supplemental benefits will you provide to keep employees happy in their positions?

Globalization Partners can help answer these questions and more through our Employer of Record platform. In addition to handling your Azerbaijan benefit management plan, we can manage all the risk. You won’t have to learn Azerbaijan’s compensation laws or figure out what statutory benefits to provide. We’ll work hard to make your expansion easier so that you can grow your company with complete peace of mind.

Azerbaijan Compensation Laws

Azerbaijan compensation laws include a mandated minimum wage of 116 manat per month. The minimum wage last changed in 2017, so you should watch for any updates in the future. Your employees are also entitled to overtime pay per your employment contract or any collective bargaining agreement (CBA). The standard working week is 40 hours over five or six days. Work on off-days or Saturdays, Sundays, a mourning day, or a public holiday should count as overtime.

Guaranteed Benefits in This Country

Azerbaijan has 11 public holidays, two 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 covered by State Social Insurance. Employees can take sick leave within reasonable limits but can get dismissed after four months.

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 should get 14 days of unpaid paternity leave after the birth of a baby.

Your Azerbaijan Benefit Management Plan

After you add guaranteed benefits to your Azerbaijan benefit management plan, you should include other supplemental benefits that will encourage greater employee retention. Many employers choose to give bonuses, but the structure varies by company. Others offer private medical insurance to supplement the limited free care currently provided by the government.

Restrictions for Benefits and Compensation

The biggest restriction you’ll face regarding benefits and compensation is the incorporation process. You must have a legal entity in Azerbaijan to add employees to your team and give them the right compensation and benefits. If you don’t have the time or expertise to establish a subsidiary, Globalization Partners can help. Our Azerbaijan compensation and benefit outsourcing services will ensure that your employees receive the right benefits without the hassle.

Globalization Partners Can Help Your Expansion

Globalization Partners wants to be an extension of your team. If you’re planning an expansion to Azerbaijan,┬ácontact us today┬áto learn more about how our Azerbaijan benefit and compensation outsourcing services can help your company.