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Mercans CountryIntel ® Kazakhstan Payroll And HR Insights

Mercans offers complete payroll, PEO and HR services in Kazakhstan

The ninth largest country in the world, Kazakhstan has the 12th largest proven oil reserves and 14th largest natural gas reserves in the world. It is the world’s largest producer of uranium and the country’s industrial sector is very reliant on mining and mineral processing. With a robust transport and communications infrastructure, the country’s prosperity is due to stable growth in all sectors of the economy and political stability.

Doing Business in Kazakhstan

With vast natural resources, Kazakhstan presents significant business opportunities such as mining, education, agriculture, infrastructure and finance. Kazakhstan counts China as a key export partner. The country has the highest literacy rate (100%) in the region and has a highly skilled, cost effective workforce.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Kazakhstan is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.

Banking

Banking Hours: 9:00 am to 6:00 pm from Monday to Friday

Working Week

The standard working week is from Monday to Friday from 9:00 am - 6:00 pm

Labor Law

The main pieces of legislation relating to employment include the Kazakhstan Constitution and the Labor Code. Labor issues regulated by the Ministry of Labor and Social Protection.

Main Industries

Oil, coal, iron ore, manganese, chromite, lead, zinc, copper, titanium, bauxite, gold, silver

GDP Growth

4.00%

Dates & Numbers

yyyy/dd/mm

Official State Name

Republic of Kazakhstan

Population

19.12 Million

Capital

Nur-Sultan

Major Languages

Kazakh

Currency

Kazakhstani Tenge

Internet Domain

.kz

International Dialing Code

+7

Kazakhstan
Nur-Sultan, KZ
3:45 pm, December 2, 2022
-16°C
few clouds

Payroll

Minimum wage has risen alongside minimum pension and these rates are set to be revised regularly due to high inflation.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for 7 years

Reports

Employees receive paid annual leave of 24 days

Annual Leave

Employees receive paid sick leave of 6 days

Sick Leave

18 weeks of paid maternity leave while there is no provision in the law for paternity leave

Maternity & Paternity Leave

Employees must be provided 30 days notice of termination

Employee Termination

There are no provisions mandated by law regarding the 13th month salary

13th month salary

60,000 KZT per month

Minimum Wage

Overtime payment is calculated at the rate of 1.5x the employee's ordinary rate of pay for only 2 hours of overtime

Overtime

There are no provisions in the law regarding severance pay

Severance Pay

Tax and Social Security

Employment wages are subject to income tax as well as mandatory pension fund contributions, social tax and social insurance contributions.

Tax

Employment wages are subject to income tax.

20%

Corporate Income Tax

10%

Personal Income Tax

12%

Sales Tax

12%

VAT

Social Security

Pension fund contributions are deducted from the employee’s gross wages and withheld. Social tax and social insurance contributions are the responsibility of the employer.

5.5%

Social Security Rate

3.5%

Social Security Rate for Employers

2.0%

Social Security Rate for Employees

Employment Law

Independent contractors may be subject to different rules, as compared to employees. Contractors are not entitled to compensation payments or minimal paid vacation and they are also subject to different termination processes.

Employment Agreement

A written employment contract is required which must contain details of the parties, job description, the contract term as well as the rights and responsibilities of each party.

Working condition

Under the Labor Code, working hours cannot exceed 40 hours per week with limited working hours for those younger than 18 years of age. Where the work is dangerous or there are harmful or hazardous conditions, the maximum number of hours is 36 hours per week.

Leaves

Employees have the right to sick leave and sick pay. Such leave cannot be longer than two months. In addition to annual vacation, leaves of absence can also be taken without pay, for study, maternity or to care for a child under the age of three.

Employment termination

Notice periods vary. At least one month’s notice must be provided to an employee prior to termination where dismissal is due to liquidation or downsizing. Where there is a decrease in production output that results in worsening economic conditions, then 15 business days notice is required. Where termination is done on grounds specified in the Labor Code, notice is not required.

30 days

Minimum notice period for terminating an employee

12 days

Total number of public holidays

40

Working hours per week

2 days

Total number of days for Compassionate & Bereavement Leave

Immigration

Business visas, for which there are three categories, are issued to foreign nationals who travel for short term business purposes. A single entry visa is issued for 90 calendar days while multiple-entry business visas may be issued for a maximum of 180 calendar days.

Residency permits

An employee who transfers from a foreign corporate entity to work for a related entity in Kazakhstan is required to obtain a work visa (which is issued on the basis of a work permit). This is typically for a term of up to three years.

Work Permit Validity

1 year

Required Documents

A letter confirming the employer’s invitation to the foreign worker

A notarized copy of the employing company’s current charter

A notarized copy of the employee’s work permit

The employer’s power of attorney

Written evidence that the employer has no outstanding taxes

Proof of payment of the consular fee

Compliant, reliable, error-free and touchless payroll in Kazakhstan

Build the best team and hire top talent compliantly in Kazakhstan. Get in touch with Kazakhstan payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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