Explore our EOR & PEO services in Kazakhstan

As your EOR in Kazakhstan, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.

Your candidate is hired by a PEO in KazakhstanÂ provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.

Almaty

Country Overview

Kazakhstan is a Central Asian country, it is the ninth-largest country in the world, and it covers an area of about 2.7 million square kilometers. It is bordered by Russia to the north, China to the east, Kyrgyzstan, Uzbekistan and Turkmenistan to the south, and the Caspian Sea to the west. The capital and largest city is Astana with a population of over 1.2 million.Â Kazakhstan has a population of around 18.7 million people, with over 130 ethnic groups represented. The official language is Kazakh, but Russian is also widely spoken.The country has a mixed economy, with the majority of its GDP generated by the service sector. The country is also rich in natural resources, particularly in oil and minerals.

General Information

Population: ~19.000.000

Capital City:Â Astana (population: ~1.200.000)

GDP:Â ~$596 billions

GDP per capita:Â ~$30.800

Currency: Tenge (KZT)

Unemployment:Â ~5%

Employer Taxes: 16% – 21%

Employee Taxes: 10%

KAZAKHSTAN EOR SPECIFICS

Employment Contracts in Kazakhstan

All employment contracts in Kazakhstan must be in writing and must include certain information, such as the employee’s job title, salary, working hours, and notice period. Employment contracts are usually for an indefinite period of time, but they can also be for a fixed period. The maximum duration of fixed-term contracts is 3 years, after which it must be converted to indefinite contract, unless the employer and employee agree to renew it.

Employers are required to provide employees with a copy of their employment contract within three days of the employee starting work. If an employee is not provided with an employment contract or if the contract does not meet the legal requirements, the employee has the right to terminate the contract within 3 days of starting work.

Probation Period in Kazakhstan

Probation periods in Kazakhstan usually last no more than 3 months, but they can be extended up to 6 months in certain cases, such as when an employee is being trained for a specific position. During the probation period, an employee has the same rights and obligations as a regular employee, including the right to a salary and to paid leave, but the employer has the right to terminate the employment contract without notice during this period. Probation period can be used by employers to evaluate the employee’s suitability and qualifications for the job. Also, it can be used as a tool to identify training needs and to ensure that the employee has a proper understanding of their duties and responsibilities. This period of evaluation allows employers to ensure that they are hiring the right candidate for the job, and it also allows employees to ensure that the job and the employer are a good fit for them.

Working Hours in Kazakhstan

The Labor Code sets a standard workweek of 40 hours and a maximum of 48 hours per week, which includes the lunch break of at least 30 minutes. Employers have to provide employees with at least one day of rest per week, which is typically Sunday. Any overtime work should be paid at an increased rate, and the maximum number of overtime hours should not exceed 20 hours per week, and 120 hours per year. However, in certain cases, the employee may voluntarily agree to work more than the established working hours.

Vacation Days in Kazakhstan

Vacation days, also known as annual leave, are a legally protected right for employees in Kazakhstan. The Labor Code of Kazakhstan provides that all employees are entitled to at least 24 working days of annual leave for each year of service. This leave can be either paid or unpaid, and the employee should be informed of the terms of the annual leave in advance. Employers grant vacation days, and it is the employee’s responsibility to request them.

Employees are entitled to take their annual leave at a time that is mutually convenient for both the employee and the employer. Employers have the right to schedule vacation periods, but they must ensure that the scheduling of vacations does not interfere with the normal operations of the company.

Sick Leave in Kazakhstan

Employees have paid sick leave for a maximum period of up to 3 months per year. The exact number of days depends on the employee’s length of service, and it ranges from 30 days for employees with less than one year of service, up to 90 days for employees with more than 5 years of service. During this period, the employee will continue to receive their salary and other benefits as usual.

Employers provide employees with paid sick leave, and it is the employee’s responsibility to inform the employer of the illness or injury, and to provide any necessary documentation, such as a medical certificate.

Wages and Salary Payment in Kazakhstan

Companies pay their employees at least once a month, on a specific day that is agreed upon between the employer and the employee. The salary payment day should be set in writing in the employment contract, and the employee should be provided with a pay stub or other written evidence of their salary or wages.

The Labor Code also provides that the minimum wage should be determined by the government, and it is adjusted on an annual basis, as of 2022 the minimum wage is 60000 tenge, approximately $125.00 USD (subject to change based on currency exchange rate). Employers who fail to pay the minimum wage may face fines and penalties.

Public Holidays in Kazakhstan

January 1-2 – New Year.
March 8 – International Women’s Day.
March 22 – Nauryz (Traditional holiday of Spring, ancient New Year)
May 1 – Unity Day.
May 9 – Victory Day.
July 6 – Astana Day.
August 30 – Constitution Day.
December 16 – Independence Day.

Employer Taxes in Kazakhstan

The Social Tax in Kazakhstan is currently at 9.5% and will be increased to 11% in 2025. This tax is payable by employers and applies to both local and expatriate employees, and is calculated based on an employee’s gross remuneration. Employers are responsible for paying this tax on top of the employee’s salary or wages.

Employee Taxes in Kazakhstan

Obligatory pension contributions – 10%

Notice Period in Kazakhstan

When an employee wishes to terminate the contract, they are required to give at least 2 weeks’ notice to their employer. The period may be longer for some categories of employees, such as managers, or for employees who have been with the company for a longer period of time.

An employee may also choose to waive their notice in exchange for compensation from the employer. When an employer wishes to terminate the contact, they are required to give a notice period based on the employee’s length of service. It ranges from 1 week for employees with less than one year of service, up to 3 months for employees with more than 5 years of service. The termination must be made in writing, and the employee should be informed of the reason for the termination. If an employee is unable to work due to an illness or injury, the employer can terminate the contract only after the end of the sick leave period and after providing a notice period.

Termination / Severance in Kazakhstan

In Kazakhstan, employment contracts can be terminated by either the employer or the employee. Employers have the right to terminate the contract with or without notice, but they are required to have a valid reason, such as the employee’s violation of the contract, redundancy, or incapability to continue working. When an employer terminates the contract without a valid reason, the employee may be entitled to compensation.

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