According to the Law of the Republic of Azerbaijan "On Unemployment Insurance", which was enacted on 1 January 2018, insured persons in case of termination of employment relationships with the abolition of the state body or legal entity or the reduction of the number of employees and registered as unemployment in the employment centers, they are entitled to an insurance payment.
Thus, civil servants dismissed in accordance with Article 33.1.2 and 33.1.3 of the Law of the Republic of Azerbaijan "On civil service", and employees of other legal entities, dismissed in accordance with Article 70 (a) and b) of the Labor Code of the Republic of Azerbaijan have the right to receive insurance compensation from unemployment if they registered as unemployed at employment centers and have at least 3 years of insurance period. Insurance period includes the period of compulsory state social insurance contributions for the benefit of the insured before 1 January 2018, and the period for which the insurance premiums are paid after January 1, 2018. If insurance period constitutes more than 12 calendar months during 24 calendar months prior to the date of registration as unemployed, insurance benefits are paid regarding the average monthly salary, and in the amount of minimum payouts in case the insurance period is less than 12 months.
According to the law, the insurance premium is calculated based on the following average rate for the average monthly salary of a citizen, depending on the length of his / her insurance period:
- Insurance period from 3 to 5 years - 50%;
- Insurance period from 5 to 10 years - 55%;
- Insurance period is more than 10 years - 60%.
The insurance premium entitled for the first time is paid in proportion to the following interest rates in accordance with the duration of the unemployment period, but not less than the average monthly wage established by the State Statistical Committee for the previous year, and not less than the minimum insurance payment:
- For the 1st and 2nd months - 100 percent;
- For the 3rd and 4th months - 80 percent;
- For the 5th and 6th months - 70 percent.