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Social Insurance Fund payments of individual entrepreneurs are being increased
Social Insurance Fund payments of individual entrepreneurs are being increased
Starting next year, the amount of social insurance contributions paid by individuals engaged in entrepreneurship without establishing a legal entity — that is, as sole proprietors — to the State Social Protection Fund (SSPF) will change in Azerbaijan.
This amendment is reflected in the proposed changes to the Law “On Social Insurance” within the 2026 state budget package.
Under the new regulation, the calculation method of SSPF payments for individuals with a Taxpayer Identification Number (TIN) will change. Currently, social insurance contributions for individuals are calculated based on the minimum monthly wage.
The current rule is as follows: 25% of the minimum wage, i.e., 100 manats, is taken as the basis.
In Baku, the full amount (100 manats) is paid; in Sumgayit and Ganja — 90% (90 manats); in other cities — 80% (80 manats); in district centers and settlements — 60% (60 manats); and in rural areas — 50% (50 manats).
From next year, the regional differentiation will be eliminated, and SSPF payments will be calculated based on the individual’s turnover — 2% of turnover. Minimum and maximum limits will apply: the monthly contribution cannot be less than 15% or more than 100% of the minimum wage — meaning it will range between 60 and 400 manats.
In other words, while the minimum contribution was previously 50 manats, it will now rise to 60 manats, and the maximum payment will increase from 100 to 400 manats.
Starting next year, the amount of social insurance contributions paid by individuals engaged in entrepreneurship without establishing a legal entity — that is, as sole proprietors — to the State Social Protection Fund (SSPF) will change in Azerbaijan.
This amendment is reflected in the proposed changes to the Law “On Social Insurance” within the 2026 state budget package.
Under the new regulation, the calculation method of SSPF payments for individuals with a Taxpayer Identification Number (TIN) will change. Currently, social insurance contributions for individuals are calculated based on the minimum monthly wage.
The current rule is as follows: 25% of the minimum wage, i.e., 100 manats, is taken as the basis.
In Baku, the full amount (100 manats) is paid; in Sumgayit and Ganja — 90% (90 manats); in other cities — 80% (80 manats); in district centers and settlements — 60% (60 manats); and in rural areas — 50% (50 manats).
From next year, the regional differentiation will be eliminated, and SSPF payments will be calculated based on the individual’s turnover — 2% of turnover. Minimum and maximum limits will apply: the monthly contribution cannot be less than 15% or more than 100% of the minimum wage — meaning it will range between 60 and 400 manats.
In other words, while the minimum contribution was previously 50 manats, it will now rise to 60 manats, and the maximum payment will increase from 100 to 400 manats.