What is the compulsory state social insurance fee?

Compulsory state social insurance fee is money paid to the insurer for insurance.

In compulsory state social insurance, the insurance premium (fee) is determined as a percentage of wages (income) and is paid at the expense of the insured and the insured.

Taking into account the provisions of Article 14.4 of this Law, compulsory state social insurance premiums on income from employment is paid at the following rates:

insurance premium paid by the insurer - 22 percent of the calculated labor remuneration fund and other incomes involved in compulsory state social insurance;

insurance premium paid by the insured - 3 percent of the employee's salary and other incomes involved in compulsory state social insurance.

Compulsory state social insurance premiums are paid from the monthly income from salaried work of insured persons who do not operate in the oil and gas sector and work in insurance companies belonging to the non-state sector at the following rates for a period of 7 years from January 1, 2019:

Compulsory state social insurance premiums for insured persons who receive income from activities not related to salaried work are paid at the following rates:

For entrepreneurial activity until January 1, 2026, contributions are calculated based on percentages of the minimum monthly wage as follows:

100 percent in Baku city;

90 percent in the cities of Sumgayit and Ganja;

80 percent in other cities;

60 percent in administrative territorial units and settlements that are the administrative center of district administrative territorial units;

50 percent in rural areas.

For individuals engaged in the types of activities provided for in Article 14 of the Law of the Republic of Azerbaijan "On Social Insurance" on an individual basis (without involving hired workers):

• conducting weddings, parties and other events, playing instruments, dancing, flirting, joking and other similar activities - in the amount of 5 percent of the minimum monthly salary;
• activity in the field of individual photo, audio-video services (except for photo studios) - in the amount of 5 percent of the minimum monthly salary;
• shoemaker, cobbler - in the amount of 3 percent of the minimum monthly salary;
• repair of watches, televisions, refrigerators and other household appliances - in the amount of 3 percent of the minimum monthly salary;
• housekeepers in private residences and apartments, care services for the sick, the elderly and children, nannies, private drivers, household cleaners, gardeners, cooks, watchmen, and physical persons (waiters) who provide services to customers in catering facilities - in the amount of 3 percent of the minimum monthly salary;
• activity of painting workshops - in the amount of 3 percent of the minimum monthly salary;
• Individuals engaged in hairdressing activities - in the amount of 3 percent of the minimum monthly salary;
• Individuals engaged in tailoring activities - in the amount of 3 percent of the minimum monthly salary;
• For those cultivating their own agricultural land (excluding those already paying contributions from other fields) and able-bodied members of peasant farms (except persons with 61–100% disability and children with disabilities aged 15 up to pension age):
• 
  in the case of up to 5 hectares - in the amount of 2 percent;

          from 5 to 10 hectares - in the amount of 6 percent;

          if it is more than 10 hectares - in the amount of 10 percent;

• Taxpayers who carry out passenger and cargo transportation with motor vehicles that have received the "Distinction mark" in the manner determined by the Tax Code of the Republic of Azerbaijan - in the amount of 6 percent of the minimum monthly salary.
• The amount of the monthly social insurance fee for natural persons engaged in the types of activities provided for in Article 14.5.1-1 of the Law of the Republic of Azerbaijan "On Social Insurance" (except for those specified in Article 5.1-1.9 of the Law of the Republic of Azerbaijan "On Social Insurance") determined by applying the following coefficients:
  
  In the city of Baku (including villages and settlements) - 2.0;
  
  In Absheron region, Sumgait and Ganja cities - 1.5;
  
  In other cities and regions – 1.0.
• with deduction from the source of payment for those working with contracts of a civil legal nature (except for individual entrepreneurs) - in the amount of 25 percent of their income;
• for special notaries - in the amount of 25 percent of ten times the minimum monthly salary;
• for legal and natural persons who pay author's royalties, with deduction from the source of payment - in the amount of 15 percent of the calculated royalties;
• members of the bar association, independent mediators, independent auditors, independent accountants - in the amount of 10 percent of their income (excluding expenses);
• For members of the Bar Association, independent mediators, auditors, and accountants (except those listed in Article 14.5.1-1) – 10% of income (net of expenses) until January 1, 2026. Contributions are calculated monthly and paid in full by non-cash means no later than the 15th of the following month.

For individuals listed in Articles 14.5.1-1.1 to 14.5.1-1.9 and 14.5.1 1.11, contributions are paid upon receiving the receipt for fixed tax, mandatory social insurance, and compulsory medical insurance until January 1, 2026.

For individuals under Article 14.5.1.1-10, contributions are paid upon receiving the “Distinction Mark.”

For the purposes of the Law of the Republic of Azerbaijan "On Social Insurance", the criteria of activity in the oil and gas field and the non-state sector are determined by the body (institution) determined by the relevant executive authority.