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Population
Azerbaijan has a population of about 10.1 million people (as of 2023). The population is ethnically diverse, with the majority being Azerbaijanis (around 91%). Smaller ethnic groups include Russians, Lezgins, Talysh, and Georgians. Azerbaijan also has a significant urban population, especially in the capital city of Baku.
Capital
The capital of Azerbaijan is Baku, the largest city in the country and one of the most important cities in the Caucasus region. Baku is located on the Caspian Sea and serves as the economic, cultural, and political center of the country.
Economic Strength
Azerbaijan’s economy is heavily based on the oil and gas industry, which accounts for the largest share of GDP and exports. In addition to energy exports, agriculture, services, and the IT sector are other important sectors of the economy. In recent years, Azerbaijan has undertaken major infrastructure projects to diversify its economy and reduce its dependence on fossil fuels.
Culture
Azerbaijan has a rich and diverse culture influenced by its position at the crossroads of Europe and Asia. Music, particularly Mugham, a traditional Azerbaijani musical form, as well as dance and poetry, play central roles in cultural life. The country is predominantly Muslim, but there is a long tradition of tolerance towards other religions and cultures. Carpet weaving and copper craftsmanship are also important cultural expressions.
Currency
The official currency of Azerbaijan is the Azerbaijani Manat (AZN). One Manat is divided into 100 qəpik. The Manat is kept stable and regulated by the Central Bank.
Health Insurance and Social Security System
Azerbaijan has a public healthcare system funded by the government, though private health insurance is also available. The public healthcare system provides basic services, but the quality of care is better in urban areas than in rural regions. The social security system covers pensions, maternity benefits, unemployment benefits, and work accident insurance. Contributions to social security are made by both employers and employees.
Employer Costs
Employers in Azerbaijan are required to contribute to social security, with contributions amounting to around 22% of the gross salary. This includes contributions for pensions, unemployment insurance, and healthcare. Additionally, taxes and other mandatory charges apply depending on the industry and legal regulations.
Salary and Bonuses
Salaries in Azerbaijan vary by industry and qualifications. The statutory minimum wage is about 300 AZN per month (around 150 euros). Many companies pay additional bonuses, especially in sectors like oil and gas and international companies. However, these bonuses are not legally required and depend on employee performance and the company’s economic situation.
Payroll
Payroll in Azerbaijan must account for deductions for income tax, social security contributions, and other legally mandated charges. The income tax ranges between 14% and 25%, depending on the salary level. Employers are responsible for calculating and remitting these contributions to the relevant authorities.
Public Holidays
Public holidays in Azerbaijan include New Year’s Day (January 1), Republic Day (May 28), Independence Day (October 18), and Victory Day (May 9). There are also religious holidays such as Nowruz (Spring Festival) and Islamic holidays like Eid al-Adha (Gurban Bayram) and Eid al-Fitr (Ramadan Bayram), which vary according to the lunar calendar.
Working Hours
The regular working hours in Azerbaijan are 40 hours per week. There are legal provisions for overtime, which must be compensated additionally. Overtime is limited to 2 hours per day, except in emergencies or special circumstances.
Vacation
Employees in Azerbaijan are entitled to at least 21 paid vacation days per year. Additional vacation days may be granted based on seniority or for certain professions. Public holidays are also considered paid leave.
Sick Leave
In the event of illness or accident, employees are entitled to sick leave. The first days of sick leave are usually paid by the employer, after which the state social security system takes over. The duration of payments and the percentage of the salary paid during sick leave depend on the length of the illness.
Termination/Severance
Azerbaijani labor law regulates terminations and provides for notice periods that vary depending on the employee’s length of service. Employees are entitled to severance pay in the case of wrongful dismissal. The amount of severance depends on the length of service and individual employment conditions. In certain cases, such as company restructuring, contractual severance payments are also provided.