
As is known, the deadline for calculating social security contributions for individual entrepreneurs at the current rates expires on January 1, 2026.
As reported by Yeniavaz.com, citing the State Tax Service, amendments to the Law "On Social Insurance" are being proposed in this regard.
According to the current law, individual entrepreneurs pay social security contributions equal to 50 percent of the minimum wage in the construction sector and 25 percent in other sectors (trade, catering, translation services, accounting, etc.). Regional coefficients are also applied (100 percent in Baku, 90 percent in Sumgayit and Ganja, 80 percent in other cities, 60 percent in administrative-territorial units and settlements that are the administrative centers of district administrative-territorial units, and 50 percent in rural areas).
The Tax Service reports that, according to proposed amendments to the Law on Social Insurance, individual entrepreneurs will pay social security contributions at a rate of 2% of their turnover starting next year. In this case, the minimum contribution will be 15 percent of the minimum wage, or 60 manat, and the maximum will be one minimum wage, or 400 manat.
For reference, if this proposal is adopted into law, individual entrepreneurs with a higher monthly turnover will pay higher social security contributions.
For example, according to the current law, the monthly social security contribution for an individual entrepreneur operating in the service sector in Baku with a monthly turnover of 20,000 manat is currently 100 manat. However, after the adoption of the proposed amendment, an individual entrepreneur with a monthly turnover of 20,000 manat will be required to pay 400 manat per month.
Elnur Ali
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