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Final Settlement Calculator 2026

AZN
days

Final settlement · total

796.05 ₼

Take-home 692.66 ₼ · deductions 103.39 ₼

Due
on your last day (art. 172.4)
If late
at least 1% of pay for each day (art. 172.5)

Labour Code 2026 · checked 20 Oct · Sources

Service with this employer

AZN

The severance is worked out from this (arts. 77.3, 177). If your pay did not change, it equals your salary.

AZN

The average for the leave compensation is the one used for vacation pay (art. 140.4): the last 12 months’ pay ÷ 12 ÷ 30.4. Bonuses and regular allowances count; one-off payments do not.

How it was worked out

  • Last month’s wage1,000 ÷ 19 × 2 working days105.26 ₼
  • Last month’s wageAlready paid — not counted—
  • Unused leave1,000 ÷ 30.4 × 21 daysone day’s average pay 32.89 ₼690.79 ₼
  • Severance pay
  • Pay instead of notice
  • Total due796.05 ₼
  • Part free of tax and DSMFTax Code art. 102.1.4, Social Insurance Law art. 15
  • DeductionsIncome tax, DSMF, unemployment and medical insurance — on 796.05 ₼−103.39 ₼
  • Take-home692.66 ₼
What is it based on, and what is left out?

The law gives no formula for a part month (art. 172.4 only says when it is due). The calculator uses accounting practice: salary ÷ the month’s working days × the working days you worked. If you have already been paid, tick the box.

Everything is paid on your last day, so the last month’s wage and the compensation are taken as one month’s income and taxed on the salary calculator’s rates. Some budget bodies tax the compensation separately for each work year; no rule that says so was found.

Counting the leave days that are paid

The basic leave of every work year not used by your last day is paid (art. 144.2). Since the Constitutional Court’s decision of 18.02.2026 the additional days are paid the same way — for service, working conditions, children and work in the liberated territories. Education, creative and social leave is not paid (art. 144.3).

Who you are

Total length of service

Children

The Code has no formula for an incomplete year (art. 144.2 says “all work years”). In practice the annual days are divided by 12 and multiplied by the months; the box applies that practice. If unsure, enter the balance of days from your employer’s records.

  • For each work year
  • Total

The count may differ from your records: a contract may give more days, and the leave of some years may have been partly used.

What is paid on each ground

Labour Code

Always paid: the last month’s wage and compensation for unused leave (art. 144.2 — whatever the reason for leaving).

  • Company is liquidated (art. 70 “a”)In addition: severance — 1 / at least 1.4 / 1.7 / 2 times the average monthly pay, by service (art. 77.3). The severance is free of income tax and DSMF.
  • Headcount or staff reduced (art. 70 “b”)In addition: the same severance (art. 77.3). Notice is 2–9 weeks (art. 77.1); with the employee’s consent a lump sum of 0.5–2 times the average monthly pay may replace it (art. 77.4). No tax or DSMF is withheld.
  • Working conditions changed, employee disagrees (art. 68.2 “c”)In addition: severance of at least 2 times the average monthly pay (art. 77.7). It is taxed in the usual way.
  • Change of owner (art. 68.2 “ç”)In addition: severance of at least 3 times the average monthly pay (art. 77.7). It is taxed in the usual way.
  • Incapacity lasting over 6 months (art. 74.1 “c”)In addition: severance of at least 2 times the average monthly pay (art. 77.7). It is taxed in the usual way.
  • Employee has died — to the heirs (art. 74.1 “e”)To the heirs, in addition: severance of at least 3 times the average monthly pay (art. 77.7). No tax or DSMF is withheld.
  • At the employee’s own request (art. 69)No severance. The employee gives one calendar month’s written notice (art. 69.1); in some cases (pension, studies, moving, etc.) the contract can end on the day named in the request (art. 69.3).
  • Another reason (agreement, discipline, probation, etc.)The law gives no separate severance for these cases (agreement, discipline, probation, etc.); an extra payment is possible if the contract provides for it.

What the calculator does not have

  • Art. 74.1 “a” (call-up to military or alternative service): art. 77.7 names it both in the “at least 2×” sentence and in the “at least 3×” sentence — the text does not say which applies, so it is not calculated.
  • Whether unemployment-insurance and medical-insurance contributions are taken from the tax-free severance is not stated in the text; the calculator only leaves out income tax and DSMF.
  • If part of the notice has already been served, the payment in its place is reduced in proportion (art. 77.4) — reduce the amount yourself.
  • An employment or collective agreement may give more (art. 77.6).

Questions

What does the final settlement include?

Everything that must be paid on your last day: the last month’s wage, compensation for unused leave (art. 144.2) and, in the cases the law names, severance (arts. 77.3, 77.7). All of it is due in full on the day you leave (art. 172.4).

How is unused leave paid?

The same way as vacation pay: the last 12 months’ pay is divided by 12, then by 30.4, and multiplied by the days paid (arts. 140.3, 140.4). For example, on a salary of 1,000 AZN for 21 days: 1,000 ÷ 30.4 × 21 = 690.79 AZN (before tax).

Are the additional leave days paid too?

Yes. Art. 144.3 excluded compensation for additional leave (arts. 115–117, 118-1), but the Constitutional Court’s decision of 18.02.2026 suspended that bar: the additional days of all work years are now paid like the basic leave. Education, creative and social leave is still not paid.

How much severance is paid on redundancy?

When a company is liquidated or headcount or staff is cut, severance depends on service with that employer: under 1 year — the average monthly pay, 1–5 years — at least 1.4 times, 5–10 years — at least 1.7 times, over 10 years — at least twice (art. 77.3). On a reduction the employee must be warned 2–9 weeks ahead (art. 77.1).

Is the final settlement taxed?

Tax and insurance contributions are withheld from the wage and the leave compensation as from salary. Severance on liquidation, reduction and death is free of income tax (Tax Code art. 102.1.4) and of DSMF. In the other cases (changed conditions, change of owner) severance is taxed too.

What if the employer pays late?

If the delay is the employer’s fault, at least 1% of pay is owed for each day (art. 172.5). A dispute is settled under the Labour Code’s “Labour disputes” part.