Approved by the resolution of Board of the State Social Security Fund of the Azerbaijan Republic of July 9, 1997 No. 7/1 the Chairman A. Alekperov

The instruction about rules of collection of fees on compulsory national social insurance

General rules

1. This Instruction determines rules of charge, collection from insurers and insured and accounting of fees on compulsory national social insurance in the State Social Security Fund according to the legislation of the Azerbaijan Republic "About social insurance" and types of responsibility for violation of these rules.

I. Payment types on the national social insurance, conditions and rules of their appointment

2. Types, conditions and rules of appointment and issue of payments for compulsory national social insurance are established by the Provision approved by the Cabinet of Ministers of the Azerbaijan Republic, and also the Constitution of the Azerbaijan Republic, the Labor code of the Azerbaijan Republic, the laws of the Azerbaijan Republic "About social insurance", "About provision of pensions of citizens", etc., Millie's resolutions of Majlis of the Azerbaijan Republic, decrees and orders of the President of the Azerbaijan Republic, resolutions and orders of the Cabinet of Ministers of the Azerbaijan Republic and other regulatory legal acts.

II. Rules of accounting of participants of insurance

3. Account of participants of insurance in bodies of the State Social Security Fund is kept according to the "Rules of accounting of participants of insurance on compulsory national social insurance" approved by the resolution of board of the State Social Security Fund of the Azerbaijan Republic of April 23, 1997 No. 3/1 and registered in the Ministry of Justice by the certificate of June 26, 1997 No. 55.

III. Fee on compulsory national social insurance

4. Fee on obligatory state social the strakhovaniyedenezhny means paid for insurance to bodies of the State Social Security Fund of the Azerbaijan Republic.

Payers on compulsory national social insurance are insurers and insured.

5. Contributions on compulsory national social insurance are assessed on the rates established by the legislation of the Azerbaijan Republic on the salary and the income of the workers of all categories which are determined by the Law of the Azerbaijan Republic "About provision of pensions of the citizens" including who are in the state, freelance, seasonal or temporary employees, and also replacement or working quickly, according to the individual employment contract (contract), engaged in individual procedure in business and labor activity (on the basis of agreements of civil nature), and also working in household under the relevant agreement.

Contributions on compulsory national social insurance are assessed on all payment types of work and the income without deduction of the withheld tax amounts, irrespective of sources of financing and payment documents (the settlement pay-sheet, the cash payment order, personal accounts, etc.), from fee form (value, natural term). For payment work and to the income all types of the salary and types of allowances established by the legislation belong to earnings, award, vacation pay, profit on business activity and other payments. The list of compensations, benefits and the income on which contributions on compulsory national social insurance are not assessed, is approved by the resolution of the Cabinet of Ministers of the Azerbaijan Republic of June 9, 1997 No. 58. On all payment types of work and the income which is not provided in this list contributions on compulsory national social insurance are assessed.

Under compensation the products paid in natural form instead of the salary are provided in natural form. For example, for working in industries of agricultural industry - in the form of fruits, grain, etc., for working at garment factory - in the form of fabric, at caramel factory - in the form of confectionery, on bakeries - in the form of bread, etc. In this case for expression of payment amount of work in cost form the state purchase prices or the prices of the state retail trade are used. The insurers created with participation of the Azerbaijani and foreign legal entities and citizens the contributions on compulsory national social insurance assessed on compensation (income) in currency pay them in foreign currency or in national currency on the official rate for charge.

6. All insurers (except the legal entities who are engaged in production of agricultural products (including industrial method) - all irrespective of form of business the state departments, the companies and the organizations; joint agricultural industries; joint farms, cooperatives, firms, rent companies, joint businesses; the religious organizations (mosques, churches, synagogues, etc.) and the structures (madrasah, schools, institutes, objects which are engaged in trading and business activity, the construction organizations, benevolent societies, etc.) operating under them; the diplomatic and trade missions of the Azerbaijan Republic operating in foreign countries, the companies, joint businesses, firms and their branches, affiliated enterprises, etc. (foreigners according to interstate agreements); the foreign diplomatic and trade missions operating in the territory of the Azerbaijan Republic, international associations, the international non-governmental organizations, the companies, joint businesses, firms and their branches, affiliated enterprises, etc. (foreigners according to interstate agreements); insurance companies, joint-stock companies, limited liability companies, consumer and production cooperation and their unions, companies of consumer cooperation, public associations and their companies; the political parties, municipalities, other insurers who are created and acting according to the legislation of the Azerbaijan Republic - fees on compulsory national social insurance pay in the amount of 27% of the added salary fund.

7. For the legal entities who are engaged in production of agricultural products (including industrial method), the fee on compulsory national social insurance is paid in the amount of 23% of the added salary fund.

The companies which are engaged both production, and conversion of agricultural products, submit 2 reports. One report is constituted on production of agricultural products from 23% - ми, and another - on conversion from 27% - ми by fees on compulsory national insurance

8. Able-bodied members of the family of persons using being in their property, lands, suitable for agricultural industry, except persons forming the legal entities, pensioners and persons working in other industries and paying fee on compulsory national social insurance (including personal subsidiary and other farms at the expense of the received property and allotment) pay fee on compulsory national social insurance for each hectare of the parcel of land in the following sizes from the average monthly salary approved over the country for pension calculation:

on the 1st group of quality of lands - 6%; on the 2nd group of quality of lands - 4%; on 3rd group of quality of lands - 2%; on the 4th group of quality of lands - 1%.

When calculating fee on compulsory national social insurance to persons using being in their property lands, suitable for agricultural industry, allotment of persons which formed the legal entity (for example: members of country farms), the pensioners and persons working in other industries and paying fee on compulsory national social insurance, disabled family members are not considered.

The group of quality of lands is established on the basis of the state act.

Example 1. The family of 6 members has allotment in 9 hectares on the 2nd group of quality. It is the share of 1 family member 1, hectare. One of family members - the pensioner, other juvenile child, third - the teacher of high school paying fee on compulsory national social insurance. In this case the fee shall be expected compulsory national social insurance in the following procedure.

The monthly amount of fee on compulsory national social insurance falling on 1 person for 1 hectare of the parcel of land constitutes 60000 x 4% = 24 manats.

In view of the fact that 3 persons are involved in compulsory national social insurance and 1,5 of hectare of the parcel of land is the share of each of them, the monthly amount of insurance premium constitutes:

24000 x 3 persons = 7200 manats

7200 x 1,5 hectares = 10800 manats.

Example 2. The family of 9 family members has allotment in 5,4 of hectares on 3rd group of quality. 0,6 of hectares is the share of 1 family member. From family members two are juvenile children, 1 - the economist working in management of statistics, another - the member of country farm, both pay fee on compulsory national social insurance. In this case the fee shall be expected compulsory national social insurance in the following procedure.

The fee amount on compulsory national social insurance falling on 1 person for 1 hectare of the parcel of land constitutes 60000 x 2% = 1200 manats.

In view of the fact that 5 family members are involved in compulsory national social insurance and 0,6 of hectares of the parcel of land is the share of each of them, the monthly amount of insurance premium constitutes:

1200 x 5 people = 6000 manats

6000 x 0,6 hectares = 3600 manats.

9. Persons using work of hired employees in household (the housemaid, the governess, the private secretary, the driver, etc.) charge 20 percent of the salary fund in the form of fees on compulsory national social insurance. When using in household of work of workers on the basis of the relevant agreement, in the agreement the name, surname, the worker's middle name, the size of the salary issued to it, date of issue, payment method, etc. shall be clearly entered. Fees on compulsory national social insurance in the amount of 20 percent of accrued payroll are performed by the employer.

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