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Azerbaijan to introduce mandatory health insurance countrywide in 2021 (UPDATE)

Finance Materials 25 December 2020 17:02 (UTC +04:00)

Title changed, details added (first version posted on 12:24)

BAKU, Azerbaijan, Dec.25

By Zeyni Jafarov - Trend:

Those working in the state and oil sectors, non-state and non-oil sectors, individuals performing work (services) on the basis of civil contracts of a legal nature, and individuals engaged in entrepreneurial activity in Azerbaijan will pay the fees for mandatory health insurance from January 1, 2021 in accordance with the law on “Health insurance”, Trend reports on Dec.25 referring to the Azerbaijani State Agency for Mandatory Health Insurance.

Employers and employees working in the state and oil sectors will pay a monthly fee for mandatory health insurance in the amount of 2 percent of the amount up to 8,000 manat ($4,705) of the monthly wage fund and 0.5 percent of the amount over 8,000 manat ($4,705) of the wage fund.

Employers and employees working in the non-state and non-oil sectors will pay a monthly fee for mandatory health insurance in the amount of one percent of the amount up to 8,000 manat ($4,705) of the monthly wage fund and 0.5 percent of the amount over 8,000 manat ($4,705) of the wage fund.

From 2022, employers and employees involved in this sector will pay a monthly fee for mandatory health insurance in the amount of two percent of the amount up to 8,000 manat ($4,705).

A mandatory health insurance fee has been set for individuals who perform services on the basis of civil contracts at two percent of their monthly income up to 8,000 manat ($4,705) and one percent of their monthly income over 8,000 manat ($4,705).

In accordance with the Tax Code, except for the cases of temporary suspension of entrepreneurship or other taxable transactions, a mandatory health insurance fee has been set at four percent of the minimum monthly wage for individuals (individual entrepreneurs, private notaries, members of the bar association) who are tax registered as taxpayers.

The mandatory health insurance fees of other people are paid from the state budget. The phased payment of mandatory health insurance fees has been envisaged through the state budget in 2020 and 2021.

The amount of the insurance fee for each person is 90 manat ($52) in the administrative-territorial units of the mandatory health insurance applied since January 2020; 90 manat ($52) + 90 manat ($52) in administrative-territorial units applied since January 2021 and multiplied by the consumer price index for the country; and 67.5 manat ($39.7) + 67.5 manat ($39.7) in administrative-territorial units applied since April 2021 and multiplied by the consumer price index for the country.

The mandatory health insurance system has been available in the Nakhchivan Autonomous Republic, Mingachevir, Gusar, Khachmaz, Guba, Shabran, Siyazan, Khizi, Gobustan, Ismayilli, Agsu, Shamakhi, Balaken, Gakh, Sheki, Oguz, Gabala, Zagatala, Goychay, Zardab, Kurdamir, Yevlakh and Aghdash districts since January 1, 2020.

Some 36 more cities and districts will join the mandatory health insurance system from January 1, 2021. The population of Baku, Sumgayit, Absheron, Khankendi, Gubadli, Zangilan and Shusha will also be covered by mandatory health insurance from April 1, 2021.

Thus, the mandatory health insurance will be introduced throughout Azerbaijan in 2021.

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