Azerbaijan talks new rules on payment of social insurance fees to number of employees

Society Materials 19 December 2022 11:46 (UTC +04:00)
Elchin Mehdiyev
Elchin Mehdiyev
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BAKU, Azerbaijan, December 19. New rules on payment of social insurance fees to a number of employees can be established in Azerbaijan, Trend reports on December 19.

The relevant bill has been put up for discussion at a meeting of the Parliament’s Committee on Economic Policy, Industry and Entrepreneurship.

In order to develop in a technology park the areas of information and communication technologies based on modern scientific and technological achievements, to attract highly qualified specialists and personnel, as well as to ensure the inflow of highly qualified professional hired labor forces into this area, it was proposed to provide benefits for paying fees on compulsory state social insurance.

For this purpose, a bill on amendments to the law of the Republic of Azerbaijan "On social insurance" has been prepared.

The proposals envisage several amendments to the substance and content of relevant provisions of the law, including the addition of Article 14.8 to the law "On social insurance". So, from January 1, 2023, a resident of a technopark, its contractor and subcontractor who concluded a direct contract with the contractor, as well as individuals attracted by these persons for the purposes of this activity, should receive benefits on compulsory state social insurance for 10 years in the amount of four times the minimum monthly wage, depending on their choice or income from employment.

Article 14 of the law reflected the procedure for calculating contributions for compulsory state social insurance paid at the expense of the insurer and the insured person.

According to the new article 14.8, a resident of a technology business incubator operating in a technology park, its contractor and subcontractor, who entered into a direct contract with the contractor, should pay fees on compulsory state social insurance to individuals involved for the purpose of this activity in two different options at their choice.

In the second sentence of the proposed article, the insured person envisaged by this article should inform the insurer in writing about his choice annually by January 15 and until the end of the calendar year, this choice shouldn’t change.

If during the subsequent calendar year the insured person doesn't provide written information about his choice in the specified period, the insurer may apply the choice of this insured person made in the previous year, and in relation to the new employer from the specified category, his choice shown in the application for the conclusion of the contract will be applied during the year.