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Kazakhstan’s Employer of Record

Run your business seamlessly with NH Consulting as we help you go beyond borders to manage your international payroll and hire new talent in Kazakhstan.

Capital

Astana

Currency

Kazakhstani Tenge

Languages

Kazakh, Russian

Population

19.13 million

GDP growth

4.1%

GDP world share

0.2%

Payroll frequency

Monthly

Working hours

40 hours/ week

Employer of record in Kazakhstan

In case if the list of your top concerns when expanding to Kazakhstan or employing workers in this country includes a lack of speed or local expertise, an employer of record may help you achieve your global growth objectives.

With the help of an international PEO, or an employer of record, you will be able to quickly hire and onboard workers in Kazakhstan (often in as little as two weeks) without having troubles about the cost and risk of establishing a local entity.

Local HR experts can help you manage your international employment needs, so, we advise you to learn about the hiring, employment, payroll and benefits requirements for workers in Kazakhstan and our employer of record service.

Hiring in Kazakhstan

It is necessary for an employer to enter into an employment contract, which can either be signed for an indefinite period or temporary. It is possible to write contracts in the Kazakh language. Responsibilities, benefits, salary, working time, and immunities are stated in it. They ordinary use Russian-English version. It is compulsory to list all money-related details in Tenge Currency. The perfect employees for your company can be hired with the help of NH Consulting team of experts. The constitution of Kazakhstan is the basis of all the labor laws. The Law on the Occupation of the Population (1998), the Law on the State Service (1999), the Law on Collective Labor Disputes and Strikes (1996), the Law on Employment of Population (2001) are important hiring laws.

NH Consulting experts will help you ensure that your hiring process is compliant with the local laws.

Employment in Kazakhstan

You’ll need to know some standard regulations to commence business operations in Kazakhstan as well as understand and penetrate the local culture to get potential candidates for employment. You can get the best recruitment services from NH Consulting EOR solutions in Kazakhstan. Some of the mandatory labor entitlements that you must keep in mind while employing in Kazakhstan are listed below.

Employees in Kazakhstan usually work five eight-hour workdays a week (standard 40 hours workweek), while employees between the age of 16 and 18 work no more than 36 hours a week.

According to Article 41 of Kazakhstan, overtime is possible only with the employees’ consent. It is legal to work overtime two hours maximum on a single calendar day in Kazakhstan. A worker gets 150% of the original payment for working overtime.

January 1 and 2

New Year’s Day

January 7

Orthodox Christmas

March 8

International Women’s Day

March 21 to 24

Nauryz Celebration

May 3

Unity Day

May 7

Defender’s Day

May 10

Victory Day

6 July

Capital City Day

July 5 and 6

Constitution Day

July 20

Kurban Ait

December 1

First President’s Day

December 16 and 17

Independence Day

24 days of annual leave must be given to all the employees working in Kazakhstan. Additional holidays are also possible in case of an emergency, but have to be discussed with the employer first.

Every employee has the right to get three days of sick leave (six days for chronic illness). The monthly reimbursement rate is the basis of the sickness allowance rate.

A total of 126 days of maternity leave (70 days before and 56 days after the delivery of the baby) must be provided according to Article 99 of the labor laws in Kazakhstan, as well as additional leave without pay in some cases.

Usually, all of the employees’ leave tends to be used. If not, full payment or another holiday must be provided, depending on the occasion.

Any employee gets a compensation in case of working on a holiday. He can cash out unused holidays.

Labor rules of Kazakhstan state that no discrimination of an employee based on race, job, status, sex, origin, religion, nationality, age, and beliefs is possible.

Protection of the information held by companies is assured by the 2020 personal protection law in Kazakhstan. Privacy in the communication is also granted to all the citizens.

Employment contracts in Kazakhstan

It is possible to sign an employment contract for an indefinite term, for definite period or to fill it in for temporarily absent employees in Kazakhstan.

Contractors are employees working independently on different contracts. Their taxes are paid and their work is managed independently. Orders, instructions as well as different perks for working full time are received by full-time employees from the employer.

Advantages of Hiring Full-time Employees

These are loyalty, knowledge and legal freedom. Firstly, working exclusively for your company makes full-time employees loyal and committed to your organization. Dependence of their individual success on the performance of your firm makes them work harder.

Secondly, the organization keeps a full-time employee’s skills and knowledge.

Thirdly, the terms of the contract and entitlements are determined by the contract at the moment of hiring full-time employees and can’t be changed without mutual decision of the both parties.

International companies that have no local liaison offices can have difficulties with drawing out detailed employment contracts that are complete in all respects and comply with the employment contract law in Kazakhstan, but templates of employment contracts assuring a compliant hiring and onboarding of the employees are included in NH Consulting comprehensive EOR solution for Kazakhstan. NH Consulting experts can give you more information about hiring the best Kazakhstan talent on both a contractual and full-time basis.

Payroll & Taxes in Kazakhstan

A minimum income tax percentage of 10% must be paid by all the citizens of the country and a sum ranging from 10 to 20% by foreigners.

Every year it is March 31

The companies working in Kazakhstan pay the tax at the rate of 20%. It is obligatory for all forms of companies and industries to pay the administration.

Interest income tax is 15%, dividends percentage tax is 15%.

A social tax of 11% and property tax of 1.5% which is calculated and paid yearly is levied by Kazakhstan.

A minimum sales tax of 12% for most of the products and services available must be paid by all the consumers living in the country of Kazakhstan.

Any contribution to the social security fund is required from employees in Kazakhstan, as a certain sum for social security has already been allotted in the contract agreement by employers.

Taxes to the Social Security fund ranging from 3% to 5% and taxes to social insurance fund at the rate of 3.5% must be paid by all the employers working in the jurisdiction of Kazakhstan at the end of every fiscal year.

Termination & Probation in Kazakhstan

Probationary Period in Kazakhstan

According to Article 15 of the labor laws in Kazakhstan, the probation period is needed to test employee’s dedication and conformance to the organization. However, employment contract must state a probation period that doesn’t exceed three months. During this period, the employee can be terminated by the employer with a written application stating a proper reason. Our experts will tell you more about the probation laws in Kazakhstan.

Termination of employment Kazakhstan

According to Article 54 of the Labor Laws, at least one month’s notice must be provided by employers before termination of the employment contract. The employment contract can also be canceled by an employee with a written notice. All the allowance under articles 73 and 74 of the labor laws must be provided to an employee.

NH Consulting experts will help you ensure that your expansion endeavors adhere to the laws regarding probation and termination in Kazakhstan.

EOR Solution in Kazakhstan

Your business will be assisted in expanding and getting traction quickly by NH Consulting EOR solution for Kazakhstan. The smooth processing of salaries and benefits of your remote team without requiring an entity setup will be ensured.