Azerbaijan has introduced a revised framework for the calculation and payment of social insurance-based benefits, with the new rules applying from May 1, 2026. Social insurance events that occurred before that date, or started before May 1 and continued afterwards, remain subject to the rules that were in force when the event occurred.
A major change concerns temporary incapacity for work, or sickness benefits. Eligibility generally requires at least six months of social insurance record, while the benefit is now paid at 100% of the calculated earnings regardless of the length of the employee’s insurance record. The previous differentiated rates have therefore been replaced by a single 100% rate. The benefit is calculated for calendar days and, as a general rule, is based on social insurance contributions relating to the four consecutive quarters preceding the month in which the incapacity occurred.
The financing of sickness benefits has also been clarified. The employer finances the benefit for the first 14 calendar days of temporary incapacity, while the remaining period is covered by mandatory state social insurance funds. Where an employee works under employment contracts at both a primary and an additional workplace, each employer calculates and pays its respective portion for the first 14 days, while subsequent payments are based on the employee’s combined eligible earnings. The monthly benefit is also subject to statutory maximum limits.
The revised framework also expands the use of automated benefit assignment where the required information is available through state information systems. This applies to several social insurance benefits, including sickness, pregnancy and childbirth, childcare until the child reaches the age of three, and funeral benefits. Where automated assignment is not possible because the required information is unavailable or incomplete, the employer must submit an application in the prescribed form.
The rules also contain specific provisions for family-related benefits. Pregnancy and childbirth benefits remain payable for the full relevant maternity period even where it overlaps with certain other forms of leave. Childbirth benefits for children born after December 31, 2020 may be assigned on the basis of state birth-registration information, while older cases may be processed upon application under the rules applicable at the time of birth. In addition, the double-rate childcare benefit has been extended to the care of all children with disabilities under the age of three, while funeral benefits may also be assigned automatically on the basis of information available in state systems.
