Minimum Wage
The minimum wage in the Republic of Azerbaijan in 2026 is 400 AZN per month. This is the lowest gross salary an employer is legally required to pay.
Paying below the minimum wage is strictly prohibited under Article 175 of the Labour Code.
Deductions in the Private Sector
Income Tax — Private Sector
| Gross salary | Formula |
|---|---|
| 0 – 2,499 AZN | (Gross − 200) × 3% |
| 2,500 – 7,999 AZN | 75 + (Gross − 2,500) × 10% |
| 8,000 AZN and above | 625 + (Gross − 8,000) × 14% |
The first 200 AZN is tax-exempt (for the 0–2,499 AZN bracket).
SSPF Employee Contribution — Private Sector
| Gross salary | Formula |
|---|---|
| 0 – 199 AZN | Gross × 3% |
| 200 – 7,999 AZN | 6 + (Gross − 200) × 10% |
| 8,000 AZN and above | 786 + (Gross − 8,000) × 10% |
Compulsory Health Insurance (CHI) — Employee, Private Sector
| Gross salary | Formula |
|---|---|
| 0 – 2,499 AZN | Gross × 2% |
| 2,500 AZN and above | 50 + (Gross − 2,500) × 0.5% |
Unemployment Insurance — Employee, Both Sectors
Gross × 0.5% (flat rate)
Deductions in the Public Sector
Income Tax — Public Sector
| Gross salary | Formula |
|---|---|
| 0 – 2,500 AZN | (Gross − 200) × 14% |
| Above 2,500 AZN | 350 + (Gross − 2,500) × 25% |
The first 200 AZN is tax-exempt (for the 0–2,500 AZN bracket).
SSPF Employee Contribution — Public Sector
Gross × 3% (flat rate)
CHI — Employee, Public Sector
| Gross salary | Formula |
|---|---|
| 0 – 8,000 AZN | Gross × 2% |
| Above 8,000 AZN | 160 + (Gross − 8,000) × 0.5% |
Employer Contributions (Both Sectors)
In addition to the gross salary, the employer pays from its own funds:
| Contribution | Rate |
|---|---|
| SSPF (employer share) | Gross × 22% |
| Unemployment insurance (employer) | Gross × 0.5% |
| CHI (employer share) | Gross × 0.5% |
Super Gross = Gross + SSPF (22%) + unemployment (0.5%) + CHI (0.5%) — the total cost to the employer per employee.
Calculation Example — Private Sector, 1,000 AZN Gross
Take-home pay (net):
| Deduction | Calculation | Amount |
|---|---|---|
| Gross salary | — | 1,000 AZN |
| Income tax | (1,000 − 200) × 3% | − 24 AZN |
| SSPF (employee) | 6 + (1,000 − 200) × 10% | − 86 AZN |
| CHI (employee) | 1,000 × 2% | − 20 AZN |
| Unemployment insurance | 1,000 × 0.5% | − 5 AZN |
| Net salary | 865 AZN |
Super Gross (total employer cost):
| Cost | Calculation | Amount |
|---|---|---|
| Gross salary | — | 1,000 AZN |
| SSPF (employer) | 1,000 × 22% | + 220 AZN |
| Unemployment (employer) | 1,000 × 0.5% | + 5 AZN |
| CHI (employer) | 1,000 × 0.5% | + 5 AZN |
| Super Gross | 1,230 AZN |
Frequently Asked Questions
What is the minimum wage?
In 2026, the minimum wage in Azerbaijan is 400 AZN per month.
What is the difference between private and public sector?
In the private sector, income tax is 3% and 10% for most salary ranges; the public sector applies 14% and 25%. SSPF employee contributions in the public sector are a flat 3%, while the private sector uses a progressive scale.
How much is SSPF?
In the private sector, the employee share ranges from 3% to 10% depending on salary. The employer share is 22% in both sectors.
What is Super Gross?
Super Gross is the total cost to the employer per employee — Gross + SSPF (22%) + unemployment insurance (0.5%) + CHI (0.5%).
How is salary calculated for part-time work?
At half-time, the minimum salary would be 200 AZN (50% of 400 AZN).