en
Who is eligible for unemployment insurance benefits and how much is paid? CONDITIONS, RULES
Who is eligible for unemployment insurance benefits and how much is paid? CONDITIONS, RULES
Unemployment Insurance Benefit – is a payment provided to an employee who has lost their job, serving as a temporary source of income. This payment is made in accordance with the *Law on Unemployment Insurance* and aims to compensate for lost wages.
Who is eligible for unemployed status? How is the insurance benefit amount determined, and for what period is it granted? Accountant Farid Zalov explains these and other questions.
Who Qualifies for Unemployed Status?
The unemployment insurance benefit is granted only to individuals who were officially employed under a labor contract and dismissed on legal grounds. Insured persons whose employment relationship was terminated on specific grounds and who are registered in accordance with Article 5 of the *Law on Employment* are entitled to receive the unemployment insurance benefit. The list of such persons is specified in Article 13.1 of the *Law on Unemployment Insurance*:
- when a government body or legal entity is dissolved;
- when the number of employees or civil servants is reduced;
- upon expiry of the labor contract;
- when the ownership of the enterprise changes;
- when reinstatement occurs by court decision;
- upon return to work after discharge from active military service.
To register as unemployed, citizens must apply to the local offices of the State Employment Agency under the Ministry of Labor and Social Protection of the Population or to DOST centers. If no suitable vacancy is offered within 5 working days, the individual is officially registered as unemployed. Once registered, the person must submit an application to receive the unemployment insurance benefit. This application is reviewed within 10 days, and a decision is made. The unemployment insurance benefit is calculated from the 1st day of the month following the approval of the individual employment program.
Conditions for Granting the Benefit
According to paragraph 1 of Article 73 of the Labor Code, a fixed-term labor contract is terminated upon expiration. Paragraph 2 states that if the term of such a contract expires during the worker’s justified absence (due to illness, business trip, vacation, or other cases where the workplace and average wage are retained under Article 179 of the Code), and the worker has been duly notified as per paragraph 1, termination may take place on the day the employee returns to work.
In accordance with subparagraph 13.2.3 of Article 13 of the *Law on Unemployment Insurance*, in the case provided for in subparagraph 13.1.3, employable persons with at least 24 months of insurance service within the last 36 consecutive calendar months under a fixed-term labor contract (excluding paid public works organized by the relevant authority under the *Law on Employment*) are entitled to receive the minimum insurance payment amount, as defined in Article 16 of the Law, three months after being registered as unemployed. Article 16 provides that the minimum insurance payment is equal to the minimum monthly wage set by the relevant executive authority. For 2025, the minimum unemployment insurance benefit is set at 400 AZN.
In other words, a person who becomes unemployed due to the expiry of their labor contract and is granted unemployed status may receive 400 AZN per month for a period of 3 months.
In cases of enterprise closure, staff reduction, and other specified circumstances, persons with unemployed status are paid the benefit for 6 months. According to Article 13 of the Law, the right to the benefit arises when dismissal occurs:
- due to change of ownership (paragraph “ç” of part 2 of Article 68 of the Labor Code);
- due to liquidation of the enterprise (paragraph “a” of Article 70);
- due to reduction in the number of employees or staff positions (paragraph “b” of Article 70);
- upon being called up for military or alternative service (paragraph “b” of part 1 of Article 74);
- upon exercising the right to return to the previous job after discharge from active military service (paragraph “ə” of part 1 of Article 74);
- upon liquidation of a government body (in accordance with the *Law on Civil Service);
- upon reduction in the number or staff positions of civil servants (in accordance with the *Law on Civil Service*).
If such persons have more than 12 months of service within the last 24 months, they are granted the benefit for 6 months.
According to Article 14.1 of the *Law on Unemployment Insurance*, for persons specified in subparagraph 13.2.1, the benefit is calculated at 50% of their lost average monthly wage, regardless of insurance service length. Article 17 states that the first-time benefit is paid proportionally to the duration of unemployment, but not less than the minimum benefit, as follows:
- first 2 calendar months – 100%;
- 3rd–4th calendar months – 80%;
- 5th–6th calendar months – 70%.
If the worker’s insurance service is less than 12 months, the minimum benefit—400 AZN per month—is paid for 6 months. The benefit amount cannot exceed the previous year’s national average monthly wage or be less than the minimum benefit. According to the State Statistics Committee, the average nominal monthly wage of salaried employees in 2024 was 1,007.5 AZN, and the minimum benefit for 2025 is 400 AZN.
In addition, a 5% supplement is added to the benefit for each child under 18 years old under the unemployed person’s care. If both spouses receive the benefit, only one is entitled to the supplement.
If a person dismissed for one of the following reasons applies again, they are granted the minimum benefit for 3 months:
- enterprise closure or staff reduction;
- change of ownership;
- reinstatement by court decision;
- return from military service.
Persons whose labor contract expired are not entitled to payment upon reapplication.
Persons Not Eligible for Unemployment Insurance
The unemployment insurance benefit is not granted to:
- individual entrepreneurs (as they are not considered employees under a labor contract);
- persons with land shares (owners of peasant/farmer households) – considered property owners or users, and therefore not classified as unemployed;
- self-employed persons (working on their own behalf) – not in an employment relationship;
- persons working under a fixed-term contract without the required insurance service;
- students who have never worked – no labor contract or service requirement met;
- persons working illegally (without a labor contract);
- social assistance recipients who have not been employed or are incapable of work – covered by other social protection mechanisms;
- individual insurance payers (entrepreneurs, notaries, lawyers).
Unemployment Insurance Benefit – is a payment provided to an employee who has lost their job, serving as a temporary source of income. This payment is made in accordance with the *Law on Unemployment Insurance* and aims to compensate for lost wages.
Who is eligible for unemployed status? How is the insurance benefit amount determined, and for what period is it granted? Accountant Farid Zalov explains these and other questions.
Who Qualifies for Unemployed Status?
The unemployment insurance benefit is granted only to individuals who were officially employed under a labor contract and dismissed on legal grounds. Insured persons whose employment relationship was terminated on specific grounds and who are registered in accordance with Article 5 of the *Law on Employment* are entitled to receive the unemployment insurance benefit. The list of such persons is specified in Article 13.1 of the *Law on Unemployment Insurance*:
- when a government body or legal entity is dissolved;
- when the number of employees or civil servants is reduced;
- upon expiry of the labor contract;
- when the ownership of the enterprise changes;
- when reinstatement occurs by court decision;
- upon return to work after discharge from active military service.
To register as unemployed, citizens must apply to the local offices of the State Employment Agency under the Ministry of Labor and Social Protection of the Population or to DOST centers. If no suitable vacancy is offered within 5 working days, the individual is officially registered as unemployed. Once registered, the person must submit an application to receive the unemployment insurance benefit. This application is reviewed within 10 days, and a decision is made. The unemployment insurance benefit is calculated from the 1st day of the month following the approval of the individual employment program.
Conditions for Granting the Benefit
According to paragraph 1 of Article 73 of the Labor Code, a fixed-term labor contract is terminated upon expiration. Paragraph 2 states that if the term of such a contract expires during the worker’s justified absence (due to illness, business trip, vacation, or other cases where the workplace and average wage are retained under Article 179 of the Code), and the worker has been duly notified as per paragraph 1, termination may take place on the day the employee returns to work.
In accordance with subparagraph 13.2.3 of Article 13 of the *Law on Unemployment Insurance*, in the case provided for in subparagraph 13.1.3, employable persons with at least 24 months of insurance service within the last 36 consecutive calendar months under a fixed-term labor contract (excluding paid public works organized by the relevant authority under the *Law on Employment*) are entitled to receive the minimum insurance payment amount, as defined in Article 16 of the Law, three months after being registered as unemployed. Article 16 provides that the minimum insurance payment is equal to the minimum monthly wage set by the relevant executive authority. For 2025, the minimum unemployment insurance benefit is set at 400 AZN.
In other words, a person who becomes unemployed due to the expiry of their labor contract and is granted unemployed status may receive 400 AZN per month for a period of 3 months.
In cases of enterprise closure, staff reduction, and other specified circumstances, persons with unemployed status are paid the benefit for 6 months. According to Article 13 of the Law, the right to the benefit arises when dismissal occurs:
- due to change of ownership (paragraph “ç” of part 2 of Article 68 of the Labor Code);
- due to liquidation of the enterprise (paragraph “a” of Article 70);
- due to reduction in the number of employees or staff positions (paragraph “b” of Article 70);
- upon being called up for military or alternative service (paragraph “b” of part 1 of Article 74);
- upon exercising the right to return to the previous job after discharge from active military service (paragraph “ə” of part 1 of Article 74);
- upon liquidation of a government body (in accordance with the *Law on Civil Service);
- upon reduction in the number or staff positions of civil servants (in accordance with the *Law on Civil Service*).
If such persons have more than 12 months of service within the last 24 months, they are granted the benefit for 6 months.
According to Article 14.1 of the *Law on Unemployment Insurance*, for persons specified in subparagraph 13.2.1, the benefit is calculated at 50% of their lost average monthly wage, regardless of insurance service length. Article 17 states that the first-time benefit is paid proportionally to the duration of unemployment, but not less than the minimum benefit, as follows:
- first 2 calendar months – 100%;
- 3rd–4th calendar months – 80%;
- 5th–6th calendar months – 70%.
If the worker’s insurance service is less than 12 months, the minimum benefit—400 AZN per month—is paid for 6 months. The benefit amount cannot exceed the previous year’s national average monthly wage or be less than the minimum benefit. According to the State Statistics Committee, the average nominal monthly wage of salaried employees in 2024 was 1,007.5 AZN, and the minimum benefit for 2025 is 400 AZN.
In addition, a 5% supplement is added to the benefit for each child under 18 years old under the unemployed person’s care. If both spouses receive the benefit, only one is entitled to the supplement.
If a person dismissed for one of the following reasons applies again, they are granted the minimum benefit for 3 months:
- enterprise closure or staff reduction;
- change of ownership;
- reinstatement by court decision;
- return from military service.
Persons whose labor contract expired are not entitled to payment upon reapplication.
Persons Not Eligible for Unemployment Insurance
The unemployment insurance benefit is not granted to:
- individual entrepreneurs (as they are not considered employees under a labor contract);
- persons with land shares (owners of peasant/farmer households) – considered property owners or users, and therefore not classified as unemployed;
- self-employed persons (working on their own behalf) – not in an employment relationship;
- persons working under a fixed-term contract without the required insurance service;
- students who have never worked – no labor contract or service requirement met;
- persons working illegally (without a labor contract);
- social assistance recipients who have not been employed or are incapable of work – covered by other social protection mechanisms;
- individual insurance payers (entrepreneurs, notaries, lawyers).