Social insurance

What is social insurance?

Social insurance is a form of insurance aimed at compensating individuals for lost wages, income or additional expenses, as well as preventing their loss.

Social insurance is in the form of compulsory state insurance and voluntary (additional) insurance. Compulsory state social insurance premium is the amount paid to the insurer for insurance. With the occurrence of a social insurance event, the insured has the right to receive an insurance payment from the insurance company.

The social insurance event includes the following:

Reaching retirement age;

Determination of disability;

Losing the head of the family;

Pregnancy and childbirth;

The birth of a child;

Child care;

Death;

The need for sanatorium treatment;

Temporary disability (for a period determined by law).

Temporary disability benefits and the right to receive maternity benefits apply to persons with at least 6 months of social insurance experience. In both cases, the maximum monthly amount of benefits may not exceed 25 times the minimum amount of the labor pension in accordance with Article 6-1 of the Law of the Republic of Azerbaijan “On Labor Pensions”.

Rights of insurers

Participate in all forms of social insurance;

Independently choose an insurer organization to carry out voluntary (additional) social insurance;

Require compliance with social insurance rules and voluntary (additional) social insurance contracts.

Obligations of insurers

To pay social insurance premiums to the insurer within the established period;

To keep records of social insurance premiums and report to the body (institution) determined by the relevant executive authority not later than the 20th of the following month after the end of each quarter;

In case of non-activity during the reporting period, to submit a certificate on absence of activity to the body (organization) determined by the relevant executive authority in accordance with the procedure established by the Tax Code of the Azerbaijan Republic not later than the deadline for submission of the report;

To perform other duties provided by the legislation.

Rights of the insured

To receive information reflected in the personal account of the relevant body that carries out individual registration in the state social insurance system at the place of residence or work;

To receive a copy of the information provided by the insurer for personal registration from the insurer in the relevant body carrying out individual registration in the state social insurance system;

In case of disagreement with the information reflected in the personal account, to apply to the relevant body or insurer carrying out individual registration in the state social insurance system to clarify this information;

In case of change of information reflected in the personal account, to apply to the relevant executive authority or insurer, which carries out individual registration in the state social insurance system;

Require the insurer to insure them under compulsory state social insurance;

Independent selection of the insurer for voluntary (additional) social insurance;

Require timely payment of social insurance payments;

Obtain information from the insurer or insurer about his insurance record when determining social insurance payments. 

Obligations of the insured person

Timely payment of social insurance premiums;

To submit documents confirming the occurrence of the social insurance event to the insurer or the insurer;

To register with the relevant executive authority that carries out individual registration in the state social insurance system;

At the request of the relevant executive authority that carries out individual registration in the social insurance system, to submit information that must be entered into his / her personal account in accordance with the legislation;

Mandatory state social insurance premium rates

For the insured who are not active in the oil and gas sector and in the private sector - only 25% of the monthly income (6 manat + 10 percent of the part over 200 manat insured, 44 percent + 15 percent of the part over 200 manat from the insurer)

On entrepreneurial activity - 25 percent of the minimum monthly wage in construction and trade, 15 percent in other areas:

100 percent in the city of Baku;

90 percent in Sumgayit and Ganja cities;

80 percent in other cities;

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

in rural areas in the amount of 50 percent.

Withholding from the source of payment for those working under civil law contracts (except for individual entrepreneurs) - in the amount of 25 percent of their income;

For private notaries - in the amount of 25 percent of ten times the minimum monthly salary

Deducted from the source of payment for legal entities and individuals paying royalties - in the amount of 15 percent of the calculated royalties;

Members of the Bar, independent auditors, independent accountants - in the amount of 10 percent of income (excluding expenses);

Individuals using agricultural land (except for those who work in other fields and pay compulsory state social insurance) and able-bodied family farms (persons with I and II degrees of disability, as well as children under 18 years of age with disabilities) Compulsory state social insurance premium for each family member (persons under the age specified in Article 7 of the Law of the Republic of Azerbaijan “On Labor Pensions”) is calculated at the following rates of the minimum monthly wage, depending on the area of ​​land:

Up to 5 hectares - in the amount of 2 percent;

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

In case of more than 10 hectares - in the amount of 10 percent;

Voluntary (additional) social insurance

Citizens of the Republic of Azerbaijan, stateless persons, foreigners, all departments, enterprises and organizations have the right to voluntary (additional) social insurance.

Voluntary (additional) social insurance contract

Voluntary (additional) social insurance is carried out on the basis of a social insurance contract concluded between the insurer and the insurer (made). The social insurance contract shall specify the rights and obligations of the parties, the amount of social insurance premiums and social insurance payments, the insured event, the liability of the parties, as well as other conditions agreed by the parties.

What is personal accounting?

To organize and maintain information on each insured in order to ensure labor pension and other social protection rights in accordance with the legislation of the Republic of Azerbaijan.

Electronic services in the field of individual registration in the state social insurance system are implemented through the centralized electronic information system of the Ministry of Labor and Social Protection.

In the state social insurance system, an individual account with a permanent (unchangeable) social insurance number is opened for each insured person during the registration period.

The rights of the body carrying out individual registration in the state social insurance system are as follows:

Require the employer and the insured to provide timely and accurate information required by law;

To check the accuracy of the information provided by the employer on personal accounting;

To issue the first written warning to the guilty officials of the employer violating the rules of individual accounting, and in case of further violations of the law to apply measures of responsibility in accordance with the legislation.

The responsibilities of the body carrying out individual registration in the state social insurance system are as follows:

To ensure timely and accurate entry of information provided by the employer and the insured into personal accounts, their reliable storage and protection;

Explain to the Insured the rules for submitting personal account information upon his / her request.