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How are social and medical insurance contributions calculated from the salary?
How are social and medical insurance contributions calculated from the salary?
According to Article 12 of the Law of the Republic of Azerbaijan “On Social Insurance” and Article 15-2.1 of the Law “On Medical Insurance,” citizens of the Republic of Azerbaijan and stateless persons working under an employment contract are considered insured persons.
If the monthly income of such a person, subject to social insurance contributions, is 200 AZN or less, a 3% social insurance fee is deducted from that amount. If the income exceeds 200 AZN, 6 AZN plus 10% of the amount exceeding 200 AZN is withheld.
From the employer’s side, social insurance contributions are calculated as follows: 22% of the employee’s income up to 200 AZN, and 15% of the portion exceeding 200 AZN.
Additionally, unemployment insurance contributions are calculated and paid as follows: By the insurer (employer): 0.5% of the calculated payroll fund, By the insured (employee): 0.5% of the employee’s salary.
It is also established that mandatory medical insurance contributions are deducted at the rate of 2% on the portion of the employee’s salary up to 8000 AZN, and 0.5% on the portion exceeding 8000 AZN.
You can obtain information about taxes and other deductions from your salary using the salary deduction calculator.
According to Article 12 of the Law of the Republic of Azerbaijan “On Social Insurance” and Article 15-2.1 of the Law “On Medical Insurance,” citizens of the Republic of Azerbaijan and stateless persons working under an employment contract are considered insured persons.
If the monthly income of such a person, subject to social insurance contributions, is 200 AZN or less, a 3% social insurance fee is deducted from that amount. If the income exceeds 200 AZN, 6 AZN plus 10% of the amount exceeding 200 AZN is withheld.
From the employer’s side, social insurance contributions are calculated as follows: 22% of the employee’s income up to 200 AZN, and 15% of the portion exceeding 200 AZN.
Additionally, unemployment insurance contributions are calculated and paid as follows: By the insurer (employer): 0.5% of the calculated payroll fund, By the insured (employee): 0.5% of the employee’s salary.
It is also established that mandatory medical insurance contributions are deducted at the rate of 2% on the portion of the employee’s salary up to 8000 AZN, and 0.5% on the portion exceeding 8000 AZN.
You can obtain information about taxes and other deductions from your salary using the salary deduction calculator.