Baku: Starting next year, social insurance premiums will change for those with monthly income of more than 8,000 manats. The rate of compulsory state social insurance contributions deducted from the monthly income of employees working for non-state sector employers not engaged in the oil and gas industry-effective in Azerbaijan since 2019-is set to change, APA reports. This is reflected in the proposed amendments to the Law on Social Insurance, discussed today at a meeting of the Milli Majlis (Parliament) Committee on Economic Policy, Industry, and Entrepreneurship.

According to Azeri-Press News Agency, since January 1, 2019, and for a seven-year period, employees in the non-oil and non-state sector have been paying 3% of their monthly income up to 200 manats, while employers contributed 22%. For monthly income exceeding 200 manats, the employee paid 6 manats plus 10% of the amount exceeding 200 manats, and the employer paid 44 manats plus 15% of the amount exceeding 200 manats.

Under the proposed changes, starting January 1, 2026, the contribution rate for monthly income up to 200 manats will remain unchanged. If the monthly income ranges from 200 manat to 8,000 manat, the insured will pay 6 manat plus 10% of the portion exceeding 200 manat, and the insurer will pay 44 manat plus 15% of the portion exceeding 200 manat as mandatory state social insurance.

From next year, if the monthly income exceeds 8,000 manat, the insured will pay social insurance contributions of 786 manat plus 10% of the portion exceeding 8,000 manat, and the insurer will pay 1,214 manat plus 11% of the portion exceeding 8,000 manat. This will result in a total social insurance contribution rate of 21% for high-income earners.