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Azerbaijan reveals who is exempt from paying mandatory health insurance fees

Finance Materials 12 January 2021 09:58 (UTC +04:00)
Azerbaijan reveals who is exempt from paying mandatory health insurance fees

BAKU, Azerbaijan, Jan.12

By Zeyni Jafarov - Trend:

The process of collecting fees for mandatory health insurance from employers and employees working in the state and oil sectors, individuals performing work (services) on the basis of civil law contracts and individuals engaged in entrepreneurial activities has begun in Azerbaijan in accordance with Article 15-10 of the country’s law ‘On medical insurance’ from January 1, 2021, the Agency for Mandatory Health Insurance (MHI) told Trend.

According to the agency, other persons, safe of the aforementioned persons, are exempt from paying mandatory health insurance fees until January 1, 2024.

Currently, the fees of these persons are paid from funds provided by the state budget. Such persons include a category of the population that does not work under a labor or civil law contract, and also does not engage in entrepreneurial activity.

The agency also said that the law ‘On medical insurance’, according to the Migration Code of Azerbaijan, doesn’t apply to foreigners and stateless persons temporarily or permanently residing in Azerbaijan, except for military personnel of urgent active military service, detainees and persons sentenced to a temporary and life imprisonment (save of district-type correctional institutions).

Employers and employees in the state and oil sectors for mandatory health insurance will be charged a monthly fee of 2 percent of up to 8,000 manat ($4,710) and 0.5 percent of over 8,000 manat of the monthly wage fund.

For individuals performing services on the basis of civil contracts, a mandatory health insurance fee is set at 2 percent of their monthly income up to 8,000 manat and 1 percent of their same income over 8,000 manat.

(1 USD = 1.7 AZN on Jan.12)

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