Salary calculator
Salary calculator 2026: from gross to net pay in Azerbaijan
Enter the monthly gross salary. The calculator shows each deduction with its rate: income tax, social insurance (MDSS), unemployment insurance and compulsory medical insurance. Below them you see the net pay and the employer's total cost.
In manat, whole number
Sector
Up to 2,500 ₼ of pay, 200 ₼ is taken off the income tax base
Rates as of 1 January 2026
Result
Net pay
865.00 ₼
Total cost to the employer
1,189.00 ₼
| Item | Rate | Amount |
|---|---|---|
| Gross salary | 1,000.00 ₼ | |
| Withheld from the employee | ||
| Income tax3% × 800 | Rate: 3% | 24.00 ₼ |
| Social insurance (MDSS)6 + 10% × (1,000 − 200) | Rate: 10% | 86.00 ₼ |
| Unemployment insurance0.5% × 1,000 | Rate: 0.5% | 5.00 ₼ |
| Compulsory medical insurance2% × 1,000 | Rate: 2% | 20.00 ₼ |
| Total deductions | 135.00 ₼ | |
| Net pay | 865.00 ₼ | |
| Paid by the employer on top | ||
| Social insurance (MDSS)44 + 15% × (1,000 − 200) | Rate: 15% | 164.00 ₼ |
| Unemployment insurance0.5% × 1,000 | Rate: 0.5% | 5.00 ₼ |
| Compulsory medical insurance2% × 1,000 | Rate: 2% | 20.00 ₼ |
| Total employer contributions | 189.00 ₼ | |
| Total cost to the employer | 1,189.00 ₼ | |
- A 200.00 ₼ relief is taken off the income tax base (main place of work).
- Compulsory accident and occupational-disease insurance (0.2–2% by risk class) is not included: it depends on the insurance contract.
The calculator is for information only and is not tax advice. Rates as of 1 January 2026. Ask your accountant for an exact calculation.
How it is calculated
The rules HRCaspian HR software uses for the monthly payroll.
01
Income tax
At the main place of work, 200 ₼ is taken off pay of up to 2,500 ₼. In the private non-oil sector the rest is taxed at 3% up to 2,500 ₼, 10% from 2,500 to 8,000 ₼ and 14% above 8,000 ₼. In the oil-gas and state sector: 14% up to 2,500 ₼, 25% above.
02
Social insurance (MDSS)
In the private non-oil sector the employee pays 3% on the first 200 ₼ and 10% above. The employer pays 22% on the first 200 ₼, 15% from 200 to 8,000 ₼ and 11% above 8,000 ₼. In the oil-gas and state sector the employee pays 3% and the employer 22% of the whole salary.
03
Unemployment insurance
In every sector 0.5% is withheld from the employee and the employer pays another 0.5%.
04
Compulsory medical insurance
In the private non-oil sector 2% up to 2,500 ₼ and 0.5% above. In the oil-gas and state sector 2% up to 8,000 ₼ and 0.5% above. The employee and the employer each pay the same amount.
05
Net pay and employer cost
Net pay is the gross salary minus the four deductions. The employer's total cost is the gross salary plus the employer's social, unemployment and medical insurance. Each amount is rounded to the qəpik.
Sources
- State Tax Service, booklet on income tax, MDSS, unemployment and medical insurance on employment income, 2026
- State Tax Service, flyer for the non-state sector, 2026
- Law on Social Insurance, articles 14.3, 14.4 and 15
- Law on Unemployment Insurance
- Law on Medical Insurance, articles 15-10.1.2 and 15-10.1.2-1
Frequently asked questions
How is income tax calculated in 2026?
In the private non-oil sector monthly income is taxed at 3% up to 2,500 ₼, 10% from 2,500 to 8,000 ₼ and 14% above 8,000 ₼. At the main place of work, 200 ₼ is first taken off income of up to 2,500 ₼. For a 1,000 ₼ salary: (1,000 − 200) × 3% = 24 ₼.
What is MDSS and how much is withheld?
MDSS is the compulsory state social insurance contribution that funds pensions and benefits. In the private non-oil sector the employee pays 3% on the first 200 ₼ and 10% above. For a 1,000 ₼ salary that is 6 + 80 = 86 ₼.
What does the employer pay on top of the salary?
The employer pays its own MDSS, unemployment insurance (0.5%) and medical insurance. For a 1,000 ₼ salary in the private non-oil sector that is 164 + 5 + 20 = 189 ₼, so the total cost is 1,189 ₼. Accident insurance is paid separately.
Who gets the 200 manat relief?
An employee at their main place of work whose monthly income is at most 2,500 ₼. Income tax is then charged on income minus 200 ₼. A second job does not get the relief.
How is the oil-gas and state sector different?
Income tax is 14% up to 2,500 ₼ and 25% above. MDSS is 3% for the employee and 22% for the employer on the whole salary. Medical insurance is 2% up to 8,000 ₼ and 0.5% above.
What does the calculator leave out?
It covers a plain monthly salary. Bonuses, overtime, leave pay, sick pay, personal reliefs under the Tax Code and accident insurance are not included. HRCaspian HR software includes all of them in the monthly payroll.
Calculate payroll for the whole company every month
HRCaspian HR software calculates every employee's pay with the same rules, together with timesheets, leave and sick notes. 30 days free.