Work and Wages

This page was last updated on: 2022-11-10

Minimum Wage

According to the Constitution of the Republic of Azerbaijan, everyone has the right to get salary that is not lower than the minimum wage without any discrimination. The minimum wage in Azerbaijan is the lowest level of monthly wages for unskilled labour and services, taking into account economic and social conditions. The minimum wage is determined at the national level. It is updated and set by the Presidential Order. Minimum wage is calculated on a monthly basis. Nevertheless, the collective agreement may provide for a higher minimum wage.

Monthly wage of an employee who has worked as per monthly norm of working time and performed his/her functions cannot be less than the state specified minimum wage. Bonuses and allowances, extra payments to additional work including those for overtime work, other payments are not included in the minimum wage.

Violation of rules about minimum wage is an administrative offence. The punishment is fine ranging from 1000 to 1500 AZN. The employee has the right to complain to the Labor Inspection or to sue (within a month and for financial claims - within a year from the day when the employee learned about the violation of his/her right).

Sources: §35 of the Constitution; §155, 292, 296 of the Labor Code; §192.3 of the Code on Administrative Offences

For more information on minimum wages, please refer to the section on minimum wages.

Regular Pay

Salary is the daily or monthly payment by the employer in cash or in kind for the employee’s performed work (rendered service), specified by the employment contract, as well as allowances, bonuses and other benefits. The relevant law on payment of wages is Labour Code.

The work of employees is calculated by the hour, at piece rates or other systems of remuneration. Wages are paid in the amount specified by the employment contract, but not less than the amount calculated based on the tariff (official) rate by collective agreements. The Labour Code also provides for higher compensation to the workers engaged in heavy work, work with harmful or hazardous working conditions or in unfavorable climate.

According to the Labour Code, wage must be paid at least twice a month with an interval of not more than 16 days. Wages for employees whose salaries are calculated over a one year period must be paid at least once a month.

The collective agreement or the employment contract may establish other terms of payment. In the case of the coincidence between the weekend or a non-working holiday and the day specified for payment of wages, wages must be paid on the previous working day.

In accordance with the Labour Code, in the case of arrears in payment, employer must also pay compensation in the amount of 1% of the remuneration for each day of delay or it is resolved in the order of labour disputes. This procedure does not apply to cases when delaying payment of wages is a result of error by the bank or another employer or due to bank's bankruptcy.

Employers are further required to notify a worker about the components of wage due in the corresponding period, the amount and grounds for deductions including information about the aggregate sum due for payment.

Wage payment is made in cash at the workplace or through bank transfer or money order if worker has given consent for that. Wages must be paid in monetary form and in legal tender, i.e., the Manat. By adult worker’s consent, employer may provide a certain percentage of wages in kind (by consumer or household goods, except alcoholic drinks (for minors - and energy drinks), tobacco products, narcotic drugs, psychotropic substances and other items excluded from the civil turnover), which cannot exceed 20% of the monthly remuneration.

Deductions from an employee’s wages can be made only for cases specified by legislation or with the written consent of the employee or by executive documents. By the order of the employer, only the following deduction are made from the salary of the employee:

  1. taxes, payments for social insurance, other compulsory payments specified by law;
  2. amounts by the executive documents;
  3. compensation of the damage by the fault of the employee's (not exceed average monthly earnings), except in case of full financial responsibility);
  4. vacation pay in cases of leave in advance and discharge before the end of working year;
  5. amount given to an employee for travel or other expenses which was not spent;
  6. sums that were overpaid to the employee (due to an accounting error);
  7. sums for purchase of goods for utility purposes, that were not used and not returned in time;
  8. membership fees to the trade union.

Excessive wages and sums that is granted as a result of an incorrect application of the relevant law (except accounting errors) are not allowed to be deducted. A certain part of wages by the employee's statement may be deducted to pay for bank loans, credits, communal expenses and other personal debts on worker’s consent.

The total amount of deductions at each payment of wages cannot exceed 20 percent, and in the cases where the worker is subject to more than one attachment order, the maximum total deduction is 50 percent of the wages. These restrictions is not used in cases of correctional work, alimony for minor children, and redress of wrong because of criminal activity or death of breadwinner, and restitution of injury caused to health of another person.

Employers are under obligation to pay full wages to workers in a timely manner. Violation of the law in the calculation and payment of wages, except for defects admitted as a result of mathematical calculations, is punishable by a fine ranging from 700 to 1500 AZN.

Sources: §154-159, 172-176 of the Labor Code; §192.4 of the Code on Administrative Offences

Regulations on Work and Wages

  • Конституция Азербайджанской Республики 1995 г. / Constitution of the Republic of Azerbaijan 1995
  • Трудовой кодекс Азербайджанской Республики 1999 г. (в ред. от 17.05.2016) / Labour Code of the Republic of Azerbaijan 1999 (version 17.05.2016)
  • Кодекс Азербайджанской Республики об административных проступках 2015 г. (в ред. от 24.06.2016) / Code on Administrative Offences of the Republic of Azerbaijan 2015 (version 24.06.2016)
  • Распоряжение Президента Азербайджанской Республики «О повышении минимальной ежемесячной заработной платы» от 31.08.2013 №3112 / Order of the President of the Republic of Azerbaijan «About raising of the minimum monthly wage» 31.09.2013 №3112

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