How will the employee's net salary change?

Will there be changes in the company's expenses?

According to Article 101.1 of the Tax Code, 14% of the salary up to 2500 AZN is subject to income tax, and 350AZN + 25% of the part exceeding 2500AZN is subject to income tax.

In addition to tax deductions from wages, there are also mandatory state social deductions. Social insurance deductions from wages were calculated according to Articles 14.3.1 and 14.3.2 of the Law on Social Insurance as follows:

For employee

For Company

Up to 200 AZN 3%

10% of the amount exceeding 200 AZN

Mandatory medical insurance 2%

Unemployment insurance 0.5%

Up to 200 AZN 22%

15% of the portion exceeding 200 AZN

Mandatory medical insurance 2%

Unemployment insurance 0.5%


However, there were certain exemptions in these calculations for a certain period. Thus, Article 101.1-1 of the Tax Code provides for the exemption of monthly income from hired work of individuals working for taxpayers not engaged in oil and gas activities and belonging to the non-state sector for a period of 7 years from January 1, 2019, and Article 14.4 of the Law on Social Insurance. There were exemptions from monthly income from hired work of insured persons working for insurers not engaged in oil and gas activities and belonging to the non-state sector for a period of 7 years from January 1, 2019. You can familiarize yourself with the calculation of wages for 2019-2025 by accessing the link www.growth.az  that we shared earlier.

Now let's explain both calculation forms in a comparative form with examples:

SalaryFor period 2019-2025From 2026
income taxSSPF
net salarycompany
expense		income tax
SSPFnet salarycompany expense
for employeefor companyfor employee
for company
100008616488918914030220805245
80006613471415411224176644196
6000461045391198418132483147
400026743648456128832298


source: tax code, law on social insurance

Paylaş