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 - 50 percent of the minimum monthly salary in the construction field, 25 percent in other fields:

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;
• Individuals who use the land suitable for agriculture in their property (except those who work in other fields and pay compulsory state social insurance fees) and family peasant
• households who are able-bodied (except for persons with a disability due to 61-100 percent impairment of body functions and persons with a disability under the age of 18) from the age of 15 to the age limit defined by Article 7 of the Law of the Republic of Azerbaijan "On Labor Pensions"), the mandatory state social insurance fee for each family member is calculated according to the minimum monthly wage rates, depending on the area of the land:
  
  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);
• With the exception of individuals specified in Article 14.5.1-1 of the Law of the Republic of Azerbaijan "On Social Insurance", the mandatory state social insurance fee is calculated for each month, at the same time as payments for wages and other income, but no later than the 15th of the following month. the full amount is paid only by non-cash settlement.

When receiving the compulsory state social insurance fee "Receipt for the payment of a fixed amount on simplified tax and mandatory state social insurance fee" by natural persons specified in Articles 14.5.1-1.1 - 14.5.1-1.9 of the Law of the Republic of Azerbaijan "On Social Insurance", " "On social insurance" is paid by natural persons specified in Article 14.5.1.1-10 of the Law of the Republic of Azerbaijan when 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.