Employer of Record in Kazakhstan

Guide to Hiring Employees in Kazakhstan

Your guide to hiring employees in Kazakhstan, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Kazakhstan
Employer Of Record In Kazakhstan

Capital City

Nur-Sultan

Currency

Kazakhstani tenge

 (

)

Timezone

GMT +6

Payroll Frequency

monthly

Tax Year

1 January - 31 December

Employer Tax

10.00%

Languages

Kazakh

Russian

How to Hire Employees In Kazakhstan

Hiring in Kazakhstan for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Kazakhstan in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Kazakhstan.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Kazakhstan’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Kazakhstan fosters a welcoming business environment, providing a conducive atmosphere for both local and international companies. In addition, a plethora of tax breaks and subsidies are readily available, further incentivizing businesses to thrive and contribute to the economic landscape.

Outsourcing to Kazakhstan offers substantial cost savings for businesses. Studies indicate significant financial benefits, often reducing expenses by a substantial margin when hiring Kazakhstani professionals.

Kazakhstan's linguistic landscape, featuring Kazakh and Russian as official languages, provides a bilingual advantage for international businesses. With English gaining prominence in global business communication, the bilingual proficiency in Kazakhstan facilitates seamless communication and collabouration, making it an attractive option for outsourcing tasks.

Kazakhstan is strategically located between Europe and Asia which makes it an attractive location for businesses with global reach.

Employment and Labor Laws in Kazakhstan

Businesses can only operate smoothly in Kazakhstan if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Kazakhstan below, to avoid any compliance issues.

Employment Contract Requirements

The 2015 Kazakhstan Labor Code governs employment relations, addressing aspects like working hours, holidays, rest periods, wages, overtime, and employment relationships.

  • Detailed job description, outlining duties and responsibilities
  • Commencement date (including employment duration for fixed-term contracts)
  • Defined working hours and frequency/date of payment
  • Salary and payment terms should be clearly documented, ensuring compliance with the local currency (Kazakhstani Tenge) and payment frequency.

Onboarding Process

We can help you get a new employee started in Kazakhstan quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Kazakhstan

The standard working hours in Kazakhstan are 40 hours per week or 8 hours per day typically from Monday to Friday.

Overtime in Kazakhstan

Any overtime work necessitates a written agreement between the employee and employer. The maximum allowable overtime is capped at 2 hours per day (1 hour for hazardous tasks) and 12 hours per month. Compensation for overtime is calculated at 150% of the regular pay rate.

Probation Period in Kazakhstan

In Kazakhstan, There is a statutory probation period of up to 3 months.

Employer of Record in Kazakhstan

An Employer of Record (EOR) acts as the legal employer for workers in Kazakhstan, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Kazakhstan is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Kazakhstan's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Kazakhstan's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Kazakhstan's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Kazakhstan's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Kazakhstan

Fiscal Year in Kazakhstan

1 January - 31 December is the 12-month accounting period that businesses in Kazakhstan use for financial and tax reporting purposes.

Payroll Cycle in Kazakhstan

The payroll cycle in Kazakhstan is usually monthly, with employees being paid by the last working day of the month.

Minimum Wage in Kazakhstan

The minimum wage for employees in Kazakhstan is typically 531.25 KZT per hour, amounting to ~ 85,000 KZT per month for a typical 40 hour work week.

Bonus Payments in Kazakhstan

There are no legal provisions for bonus payments.

Employment Taxes in Kazakhstan

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 10% on top of the employee salary in Kazakhstan.

Tax TypeTax Rate
Social Insurance (Should not exceed 3.5% of seven times the minimum monthly wage).3.5%
Medical Insurance (Contributions must not surpass ten times the minimum monthly wage).3%
Social Tax9.5%
Obligatory Professional Pension (Applicable only for employees working in harmful conditions).5%

Employee Payroll Tax Contributions

In Kazakhstan , the typical estimation for employee payroll contributions cost is around 12%.

Tax TypeTax Rate
Health Insurance2%
Pension10%

Individual Income Tax Contributions

Individual income tax in Kazakhstan is calculated according to a flat rate of 10%.

Income BracketTax Rate
0 - 85,000 KZT0%
85,001 KZT And above10%

Pension in Kazakhstan

Employees are required to contribute 10% of their gross salary to an individual pension account. This is a defined contribution system, and the funds are managed by the Unified Accumulative Pension Fund (UAPF).

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Kazakhstan tailored to your needs.

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Work Permits & Visas in Kazakhstan

In Kazakhstan, work permits and visas are essential for employers hiring foreign talent. The process involves submitting applications, paying fees, and meeting various requirements, including labor market assessments and quotas. The key visa types include Type A (for skilled specialists), Type B (for technical workers), Type C (for investors), and Type D (for temporary workers). Employers must ensure compliance with Kazakhstan's labor regulations when sponsoring foreign employees and must be prepared for visa renewals, as work permits are typically valid for one year.

Annual Leave & Company Policies In Kazakhstan

Mandatory Leave Entitlement in Kazakhstan

The annual leave entitlement in Kazakhstan is 24 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Kazakhstan

Kazakhstan has 12 mandatory national public holidays in a year.

HolidayDate
New Years Day2 January - 3 January
Eastern orthosox christmas7 January
International Women's Day8 March
Nauryz Holiday21 March - 23 March
Unity DayMay 1
Defender of the Fatherland8 May
Victory Day9 May
Eid Al AdhaJune, specific date changes annually
Day of the Capital6 July
Constitution Day30 August
Republic Day in Kazakhstan25 October
Kazakhstan Independence Day18 December

Paid Time Off in Kazakhstan

In Kazakhstan, employees are entitled to a minimum of 24 calendar days of paid vacation, with extra days for those in hazardous conditions. The annual leave is calculated in calendar days, excluding public holidays that coincide with scheduled annual leave, irrespective of work schedules.

Maternity Leave In Kazakhstan

Mothers are entitled to 126 days of paid maternity leave, with 70 days before the due date and 56 days (or 70 for multiple births) after birth. In difficult deliveries, an extra 14 days may be added. For mothers in nuclear test areas, the leave is 160 days, split into 90 days before due date and 70 days after birth, fully paid by the employer at 100% regular salary.

Paternity Leave In Kazakhstan

There is no statutory provision for paternity leave in Kazakhstan.

Sick Leave In Kazakhstan

Employees have a paid sick leave entitlement of 3 days per year, which may extend to 6 days in the case of severe illness.

Parental Leave In Kazakhstan

After the maternity leave period, women have the option to take unpaid parental leave until the child reaches the age of 3 years. This leave is available to either parent and allows them to retain their job position.

Other Leave

Employees can take up to 5 days of unpaid leave for purposes such as marriage, bereavement (of an immediate family member), and exceptional circumstances.

Employment Termination and Severance Policies in Kazakhstan

Termination Process in Kazakhstan

Fixed-term contracts can be ended by employers due to business, personal, or worker's misconduct reasons, requiring written notice and explanation. Both employer and employee must provide written notice for agreement termination.

Notice Period in Kazakhstan

The employer must provide a minimum notice period of one month, or compensate the employee with payment in lieu of notice.

Severance in Kazakhstan

In Kazakhstan, all terminated employees are eligible for severance pay, which amounts to 30 days of salary.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Kazakhstan

Questions and Answers

What Is an EOR in Kazakhstan?

An Employer of Record (EOR) in Kazakhstan is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Kazakhstan without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Kazakhstan Without an Employer of Record?

Yes, you can hire in Kazakhstan without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Kazakhstan.

How Much Does It Cost To Employ Someone In Kazakhstan?

The cost of employing someone in Kazakhstan includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Kazakhstan. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Kazakhstan?

As of January 1, 2024, Kazakhstan's minimum wage rates are:

  • 531.25 KZT p/h KZT per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Kazakhstan?

An EOR simplifies payroll management in Kazakhstan by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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