The rate of compulsory state social insurance contributions deducted from the monthly income of employees working for non-state sector employers not engaged in the oil and gas industry—effective in Azerbaijan since 2019—is set to change, APA reports.
This is reflected in the proposed amendments to the Law on Social Insurance, discussed today at a meeting of the Milli Majlis (Parliament) Committee on Economic Policy, Industry, and Entrepreneurship.
Since January 1, 2019, and for a seven-year period, employees in the non-oil and non-state sector have been paying 3% of their monthly income up to 200 manats, while employers contributed 22%. For monthly income exceeding 200 manats, the employee paid 6 manats plus 10% of the amount exceeding 200 manats, and the employer paid 44 manats plus 15% of the amount exceeding 200 manats.
According the project, starting January 1, 2026, the contribution rate for monthly income up to 200 manats will remain unchanged. If the monthly income is only from 200 manat to 8,000 manat, the insured will pay 6 manat + 10% of the part from 200 manat to 8,000 manat, and the insurer will pay 44 manat + 15% of the part from 200 manat to 8,000 manat as mandatory state social insurance.
From next year, if the monthly income exceeds 8,000 manat, the insured will pay social insurance contributions of 786 manat + 10% of the part exceeding 8,000 manat, and the insurer will pay 1,214 manat + 11% of the part exceeding 8,000 manat. Thus, the social insurance contribution rate in this case will be 21% in total.
