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Capital City
Tashkent
Currency
Uzbekistani Sum
(
лв
)
Timezone
GMT +5
Payroll Frequency
monthly
Tax Year
1 January- 31 December
Employer Tax
12.10%
Languages
Uzbek
Capital City
Tashkent
Currency
Uzbekistani Sum
(
лв
)
Timezone
GMT +5
Payroll Frequency
monthly
Tax Year
1 January- 31 December
Employer Tax
12.10%
Languages
Uzbek
Labor costs in Uzbekistan are generally lower compared to many Western countries. This can lead to significant cost savings for businesses, especially when hiring skilled professionals.
Many professionals in Uzbekistan are fluent in English and other languages, making communication with international teams smooth.
Uzbekistan boasts a diverse and talented workforce with individuals skilled in various fields, including IT, engineering, design, and customer service.
Uzbekistan is emerging as a hub for tech talent. The country has a growing number of IT professionals with expertise in software development, data science, and other tech-related fields.
Businesses can only operate smoothly in Uzbekistan 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 Uzbekistan below, to avoid any compliance issues.
The employment relationships in Uzbekistan are governed by the Labour Code of the Republic of Uzbekistan, enacted in 1996. An employment contract in Uzbekistan should include the following key elements:
We can help you get a new employee started in Uzbekistan 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.
Regular working hours is set at a maximum of 40 hours. For a six-day workweek, the daily working duration must not surpass seven hours, while for a five-day workweek, it is limited to eight hours per day.
Employees can work up to four extra hours for two days in a row and up to 120 hours in a year. Overtime pay, set at 200% of the regular pay, applies for hours beyond the standard 40 hours per week.
The probationary period for regular employees is limited to three months in Uzbekistan. For key positions such as heads of organizations, their deputies, chief accountants, and heads of distinct divisions within organizations, the probationary period is extended to six months.
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1 January- 31 December is the 12-month accounting period that businesses in Uzbekistan use for financial and tax reporting purposes.
The payroll cycle in Uzbekistan is usually monthly, with employees being paid by the last day of the month.
The minimum wage for employees in Uzbekistan is typically 6,125 UZS per hour, amounting to ~980,000 UZS per month for a typical 40 hour work week.
In Uzbekistan, the labour code does not include a mandatory provision for a 13th-month pay.
Employer payroll contributions are generally estimated at an additional 12.1% on top of the employee salary in Uzbekistan.
In Uzbekistan , the typical estimation for employee payroll contributions cost is around 6%.
The income tax in Uzbekistan is levied at a flat rate of 12%.
Employers contribute 12% to the Unified Social Fund and 0.1% to Individual Pension Accounts. Workers can receive an old-age pension if they are men aged 60 with at least 25 years of service or women aged 55 with at least 20 years of service. Some workers may qualify for a pension at a reduced age or with less service time, depending on their category.
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The annual leave entitlement in Uzbekistan is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
The local government annually decides whether holidays that fall on the weekend will be forfeited or shifted to a working day. Religious holidays, which are determined by the lunar cycle, are labeled as 'tentative' until their confirmation closer to the holiday date.
Employees are entitled to a minimum of 15 days of paid vacation per year after completing six months of continuous employment. The paid leave entitlement may be extended for minors and employees engaged in challenging and hazardous occupations.
Eligible employees are entitled to up to 126 days of paid maternity leave "70 days before the birth and 56 days after. For multiple or complicated births, the leave is extended to 70 days. During this time, the employee receives a social security benefit equal to their regular salary.
Uzbekistan's labor laws do not provide a statutory entitlement to paternity leave.
In Uzbekistan, there is no limit on the total number of sick leave days per year, but the number of paid sick days is restricted to 30 calendar days annually. If an employee is unwell for an extended period, the sick leave can be prolonged by a special medical commission for an additional 30 calendar days.
Uzbekistan's labor laws allows for parental leave until a child reaches the age of two, which can be utilized by the child's father, grandparents, or other relatives who are the actual caregivers. This leave is unpaid, but during this period, the caregiver may receive state social insurance benefits.
When an employee adopts a child, they are entitled to 56 days of paid leave. If the employee adopts multiple children, the entitlement increases to 70 days of paid leave.
The termination process in Uzbekistan depends on the employment or collective agreement, the type of contract, and the reason for termination. Economic layoffs or terminations due to long-term disability require approval from the Employee Insurance Agency (UWV). Here are the grounds for which an employer can terminate a contract:
In Uzbekistan, the notice period for termination varies based on the reason:
Severance pay in Uzbekistan, under the new code, is determined based on the length of service with the employer and cannot be less than the average monthly wage. The severance pay rates are as follows:
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.
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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