How is the salary calculated?

There are 5 types of labor deductions. These are:

  1. Income tax
  2. SSPF seizures
  3. Unemployment deductions
  4. Trade union membership fees
  5. Compulsory health insurance

 The company that hires the employee for additional payroll deductions also makes SSPF payments on behalf of the employee.
Salary calculation is divided into 2 parts:

  1. Non-oil and gas and private sector
  2. Public and oil and gas sector 

The application of compulsory health insurance in the regions (deduction from labor) is regulated by the Cabinet of Ministers Resolution No. 136 of April 10, 2020. You can get acquainted with the relevant decision.
You can 
download the excel document for salary calculation here


Non-oil and gas and private sector
At the expense of the employee

At the expense of the company

  Income tax

  0 up to 8000AZN salary
14% more 8000AZN of the salary

 SSPF retention 
 6 AZN up to 200 AZN salary, 10% of the upper part of 200 AZN   salary

 Unemployment insurance 
 0.5% of salary

 To the trade union 
 Definite%

 Compulsory health insurance 
2% up to 8000 AZN, 0.5% of the part above 8000 AZN

  No income tax is levied

 


 SSPF retention 
 44 AZN up to 200 AZN salary, 15% of the upper part of 200 AZN     salary

 Unemployment insurance 
 0.5% of salary

 To the trade union 
 Definite%

 Compulsory health insurance 
2% up to 8000 AZN, 0.5% of the part above 8000 AZN




Oil and gas and the public sector

At the expense of the employee

At the expense of the employee 

 Income tax 
If the salary (taxable) is up to 2500 AZN (salary-200) * 14%
If the salary (taxable) is more than 2500 AZN 350+ (salary-2500) * 25%

SSPF allocation is 3% of salary

Unemployment insurance 0.5%

Trade union  determined %

Compulsory health insurance
2% up to 8000 AZN, 0.5% of the part above 8000 AZN

  Income tax is not calculated 



SSPF allocation is 22% of salary

Unemployment insurance 0.5%

Trade union  determined %

Compulsory health insurance
2% up to 8000 AZN, 0.5% of the part above 8000 AZN