Employer of Record in Azerbaijan

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
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Why companies build teams in Azerbaijan

Lundi supports compliant employment in Azerbaijan for specialist hires — particularly Russian and Turkish-language talent, plus oil/gas-adjacent engineering. Baku concentrates the senior talent. For larger SSC and engineering teams we typically recommend Poland, Georgia, or Turkey.

Languages

Azerbaijani

Payroll Frequency

Monthly, Bi-Monthly

Currency

AZN

Capital City

Baku

Employer Tax Rate

22%

Azerbaijan's professional talent is concentrated in Baku — historically anchored by oil and gas sector employers (BP Azerbaijan, SOCAR, plus international energy services). Growing tech and services sector. Azerbaijani manat (AZN) is the local currency. Employer social contributions are moderate. Strong fit for specialist hires with energy-sector or Russian/Turkish-language requirements. For larger teams Lundi typically recommends Poland, Georgia, or Turkey — deeper international-employer infrastructure and more comparable English-language environment.

Cost of Employment in Azerbaijan

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Azerbaijan

Employer Tax Costs in Azerbaijan

An employer can expect to contribute 22% on top of an employee’s salary in social contributions.

Employee Income Taxes in Azerbaijan

Employees in Azerbaijan are taxed federally from 0% to 14% depending on their income bracket. Social security contributions total 5.5%.

Employee Probation in Azerbaijan

Standard probation periods in Azerbaijan are three months (during which time either party can cancel the contract with three days' notice).

Employee Overtime in Azerbaijan

A normal working day cannot exceed eight hours, and the normal working week is five days, with two days off.

Employee Notice in Azerbaijan

Regardless of their length of service, all employees must give at least one months' notice. Employment contracts can increase employee notice periods up to a maximum of six months. The amount of notice that employers must give employees depends on their length of service

Termination in Azerbaijan

Employeers in Azerbaijan are strict and must be managed in accordance with the Employees Act (Angestellten-Gesetz). The final payment must be delivered at the very latest by the final day of employment, and the resignation of employment agreement should be registered in an electronic information system on the last working day together with the notification to the MLSPP providing details of the role and salary of the employee being terminated.

How Lundi works in Azerbaijan

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.