2008 Rates of Social Insurance for Several Categories of People Corrected

Business Materials 17 December 2007 16:22 (UTC +04:00)

Azerbaijan, Baku /corr. Trend I.Khalilova / The President of Azerbaijan, Ilham Aliyev, issued an order approving the amendments in the Law on the social Insurance. According to the amendments, the rates of the social insurance transfers were decreased for the persons engaged in the entrepreneurship activities without establishing the legal entity. In addition, the amendments envisage the implementation of the single rates for the land owners.

According to the active Law on the social Insurance, the individual entrepreneurs involved in the trade, transport, construction pay some 70% of the minimal monthly wages for the obligatory social insurance and 40% in other spheres. Currently the minimal wage in Azerbaijan totals AZN 50.

According to the amendments, these rates will be decreased up to 50% and 20% relatively. In addition, 6% rates will be applied to the workers of the family farms. Today there are many land owners and the Law on Land contains a special section on the social insurance. Till now, 2% rate has been active for the land owners. The amendments will come into force from 1 January 2008.