TODAY.AZ / Politics

President approves changes in social insurance rates for enterpreneurs

03 June 2020 [17:46] - TODAY.AZ

By Azernews


By Ayya Lmahamad

Azerbaijani President Ilham Aliyev has approved the amendments to the Law on Social Insurance, providing for privileges for business entities engaged in individual entrepreneurship  in the conditions of COVID-19, president’s press service reported on June 2.

According to changes in the law "On Social Insurance", from April 1, 2020 to January 1, 2021 the rate of contributions to compulsory social insurance for individuals engaged in self-employed activities in construction and trade will be 25 percent of the minimum wage, 15 percent - in other areas.

Currently, social security contribution rates are 50 percent and 25 percent, respectively.

Thus, presenelty, persons engaged in trade activities in Baku pay AZN 125 ($73.5) per month for compulsory social insurance. After the changes come into force, they will pay AZN 62.5 ($36.7) 50 percent less.

Moreover, for citizens engaged in other activities (except construction and trade) in Baku, currently the payments for compulsory social insurance amount to AZN 62.5 ($36.7) monthly, under new conditions - AZN 37.5 ($22) or 40 percent less.

Under the document, from 1 January 2021 to 1 January 2026 the rate of mandatory social insurance contributions will be 50 percent of the minimum wage and 25 percent - in other areas.

The following deductions for obligatory social insurance are provided for persons engaged in entrepreneurship individually without employees, until January 1, 2026:

- for presenters, musicians and dancers at weddings and other entertaining events and for persons providing individual photo, audio and video services – 5 percent of the minimum wage;

- for shoemakers, watchmakers, tailors, persons engaged in repair of TV sets, refrigerators and other household appliances, providing services at home – 3 percent of the minimum wage.

In addition, if an individual has an allotment of up to 5 hectares, the payment for social insurance will be made at the rate of 2 percent of the minimum wage for each family member (5 manat), if there is an allotment from 5 to 10 hectares – 6 percent (15 manat per person), more than 10 hectares – 10 percent (25 manat per person).


URL: http://www.today.az/news/politics/194282.html

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