Law on amendments and supplements to the Law "On Social Insurance" of the Republic of Azerbaijan
The National Assembly of the Republic of Azerbaijan decides:
I. Following amendments and supplements to be made to the Law on "Social Insurance" of the Republic of Azerbaijan (Law Collection of the Republic of Azerbaijan 1997 year, N 5, Article 348; 1999 year, N 11, Article 609; 2000 year, N 11, Article 776; 2001 year, N 9, Article 576, N 12, Articles 733, 736; 2002 year, N 12, Article 706; 2004 year, N 7, Article 505; October 29, 2004 year):
- To add the wording (for the period defined by legislation) to the end of para 5 of the second part of Article 4 and forth para of the first part of Article 6.
- In Article 14:
1) second para of the third part to be in the following wording:
"in the amount of 22 percent of calculated labor payment fund- for elected authorities and all employers"
2) to delete third line of the third part;
3) to replace figure "2" with figure "3" in para ten of the third part;
4) to add the wording as "full payment in accordance to the volume of same payments" after the wording "at the same time with wage payments" in the third sentence of the sixth part;
5) to delete the forth and fifth sentences of sixth part;
6) to consider the seventh part with the eights part;
7) to add the seventh part in the following content :
When mandatory social insurance fees are not paid or its payment is delayed, the debt amount is received in the following manner:
If insurer fails to pay the mandatory state social insurance fees within the timeframe defined by Law, then the respective executive body responsible for management of mandatory state social insurance sends its notification to insurer to pay the debts and applied financial sanctions to mandatory state social insurance calculated and recalculated in accordance to this Law within the 5 day time period;
If insurer fail to pay calculated and recalculated debts and applied financial sanctions to mandatory state social insurance fees within a time frame mentioned in the notification , then respective executive body responsible for management of mandatory state social insurance submits execution document to bank or other credit organization to transfer funds from current, currency and other accounts of insurer to the account of respective executive body responsible for management of mandatory state social insurance in the amount of calculated and recalculated debts and applied financial sanctions to mandatory state social insurance fees;
When fund is available in current and other accounts of insurer the order made by respective executive body responsible for management of mandatory state social insurance is executed by bank or other credit organization from the date of entry of request;
When such order is directed to the currency account of the insurer, then bank or credit organization freezes the currency fund in the account up to 105 percent of the amount shown in the order for the exchange rate officially defined in the National Bank of Azerbaijan Republic for the same day and immediately sends information letter to insurer. The order is executed once the funds is converted into manat by the insurer;
when current, currency and other accounts of the insurer is out of funds or not enough to cover mandatory state social insurance debts and applied financial sanctions, then the decree of the respective executive body responsible for implementing insurance policy is kept at the bank or other credit organization;
If debts and applied financial sanctions to mandatory state social insurance fees are not paid within 90 days from the date of entry of the decree to banks and other credit organization, then decree is returned back and the decree for that debt is not accepted for execution again and these debts and financial functions are received from the insurer through tribunal;
once the decree of the respective executive body responsible for implementing insurance policy on enforcement of payments for mandatory public social insurance fees and applied financial sanctions is submitted to several bank and credit organization and transfers are made from the account of the insurer for the debts and applied financial sanctions to mandatory state social insurance fees to the account of the respective executive body responsible for implementing insurance policy, then respective executive body responsible for implementing insurance policy should ensure immediate refund of deducted funds and recall its decrees made for the same debt and financial sanctions to other banks and credit organizations;
If insurer is not a juridical person, the amount of the fund is levied upon the valid decision of the court.
8) to add the ninth part in the following content:
"International, local, humanitarian organizations of which activities are coordinated with respective executive bodies and development organizations founded by them (employers) donor countries, organization, private companies are exempted from paying mandatory state insurance fees calculated for salary fund formed on the account of funds allocated within the framework of humanitarian organizations. (within execution period of "State Program for improvement living condition and increasing employment of refugees and internally displaced persons" approved by Decree No 298 dated July 1 2004 of the President of Azerbaijan Republic)".
- In Article 21:
1) in para nine of the first part, after the wording "as well" to add the wording " for not executing the decrees of the respective executive power responsible for management of mandatory state social insurance on consequent deduction of payments as considered by the Civil Code from the account of insurer to cover the mandatory social insurance debts and applied financial sanctions"
2) In the second part after the wording "from the account" to add wording as "in accordance to the seventh part of Article 14 of this Law".
II. This Law enters into force since January 1 2005.
Ilham Aliyev
President of Azerbaijan Republic
Baku city, 3 December 2004
N 794
Copyright © 2008
