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
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
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.
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.
The 2015 Kazakhstan Labor Code governs employment relations, addressing aspects like working hours, holidays, rest periods, wages, overtime, and employment relationships.
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.
The standard working hours in Kazakhstan are 40 hours per week or 8 hours per day typically from Monday to Friday.
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.
In Kazakhstan, There is a statutory probation period of up to 3 months.
1 January - 31 December is the 12-month accounting period that businesses in Kazakhstan use for financial and tax reporting purposes.
The payroll cycle in Kazakhstan is usually monthly, with employees being paid by the last working day of the month.
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.
There are no legal provisions for bonus payments.
Employer payroll contributions are generally estimated at an additional 10% on top of the employee salary in Kazakhstan.
In Kazakhstan , the typical estimation for employee payroll contributions cost is around 12%.
Individual income tax in Kazakhstan is calculated according to a flat rate of 10%.
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).
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.
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.
Kazakhstan has 12 mandatory national public holidays in a year.
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.
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.
There is no statutory provision for paternity 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.
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.
Employees can take up to 5 days of unpaid leave for purposes such as marriage, bereavement (of an immediate family member), and exceptional circumstances.
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.
The employer must provide a minimum notice period of one month, or compensate the employee with payment in lieu of notice.
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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