Contribution rates
The compulsory medical insurance contribution is set by articles 15-10.1.2 and 15-10.1.2-1 of the Law on Medical Insurance. Employee and employer pay at the same rate.
| Monthly salary | Employee | Employer |
|---|---|---|
| up to 2,500 ₼ | 2% of this part | 2% of this part |
| above 2,500 ₼ | 0.5% of this part | 0.5% of this part |
| Monthly salary | Employee | Employer |
|---|---|---|
| up to 8,000 ₼ | 2% of this part | 2% of this part |
| above 8,000 ₼ | 0.5% of this part | 0.5% of this part |
Private non-oil sector
Under article 15-10.1.2-1 the contribution is 2% on the part of salary up to 2,500 ₼ and 0.5% on the part above. Law 297-VIIQD added this article. Each rate applies to its own part of the salary.
On a 3,000 ₼ salary the employee pays 52.50 ₼ and the employer 52.50 ₼:
From the employee’s pay per month, ₼
Employer cost per month, ₼
State and oil-and-gas sector
Article 15-10.1.2 has the same rates but the threshold is 8,000 ₼: 2% up to 8,000 ₼ and 0.5% above. On a 3,000 ₼ salary the employee pays 60.00 ₼; on 10,000 ₼, 170.00 ₼. In the private sector the same 10,000 ₼ pays 87.50 ₼; the difference comes from the two thresholds.
The 50% private-sector discount has ended
Article 16-4.3 gave the private sector a 50% discount on the contribution, which ran until 1 January 2022. After that date there is no discount and the rates above apply in full.
The medical contribution does not reduce the income tax base. All deductions are on the salary deductions page; income tax and social insurance are explained separately.
Questions and answers
What is the medical insurance contribution in Azerbaijan?
In the private sector 2% on salary up to 2,500 ₼ and 0.5% above. On 3,000 ₼ the employee pays 52.50 ₼.
Who pays compulsory medical insurance?
Both employee and employer, at the same rates. On a 3,000 ₼ salary each pays 52.50 ₼.
What is the medical contribution in the state and oil-and-gas sector?
2% up to 8,000 ₼ and 0.5% above. On 3,000 ₼ the employee pays 60.00 ₼.