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Mercans CountryIntel ® Uzbekistan Payroll And HR Insights

Mercans offers complete payroll, PEO and HR services in Uzbekistan

Resource-rich, Uzbekistan is strategically located in Central Asia and is the second-fastest growing economy in the CIS. A notable achievement is that Uzbekistan is one of the top 20 countries in the world that have achieved great results in improving their business environment. The country boasts significant reserves of mineral resources. Key benefits of opening business are the low cost of energy (gas and electricity) and the infrastructure in place - roads, electric networks, gas pipelines and 11 international airports. A lot has been done to improve the investment climate and simplify the business environment.

Doing Business in Uzbekistan

A lot has been done to attract more foreign capital including increasing their sovereign credit ratings, rising on the OECD country credit risk classification, new Silk Road connectivity as well as comprehensive structural and regulatory reform. The major industry sectors include education, tourism, ICT, electronics, textiles, food, pharmaceutical, chemicals, machine manufacturing and construction.

Entity Registration and Incorporation Requirements

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

Banking

Banking Hours: 8:00 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 Labor Code ensures that many core labor issues are addressed including employment, probation, gender discrimination, dismissal, retirement and more. Recent amendments seek to grant employees a broader range of rights. Many basic rights are already incorporated in the employment contract.

Main Industries

Automotive, textiles, food processing, machine building, metallurgy, mining

GDP Growth

7.40%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Uzbekistan

Population

35.27 million

Capital

Tashkent

Major Languages

Uzbek

Currency

Uzbekistani Soʻm

Internet Domain

.uz

International Dialing Code

+998

Uzbekistan
Tashkent, UZ
3:40 pm, December 2, 2022
2°C
scattered clouds

Payroll

The average monthly wage includes allowances, bonuses, incentive payments, compensatory payments and also income tax withheld by employers and deductions made to the union fund.

It is acceptable to provide employees with online payslips

Payslip

Employees receive paid annual leave of 15 days

Annual Leave

No set number of sick days for employees in Uzbekistan.

Sick Leave

18 weeks of paid maternity leave. There are no legal provisions regarding paternity leave.

Maternity & Paternity Leave

Employees must be given 14 days notice of termination of their employment.

Employee Termination

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

13th month salary

107,635 UZS per month

Minimum Wage

Overtime pay is calculated at 2x the employee's ordinary rate of pay

Overtime

Employees paid monthly are entitled to 30 days’ pay for two years of employment

Severance Pay

Tax and Social Security

In order to attract foreign capital, there are tax and customs incentives, 21 free economic zones and a business ombudsman institution introduced.

Tax

Both residents and non-residents are subject to tax in Uzbekistan. Residents are taxed on their worldwide income whereas non-residents are only taxed on Uzbekistan-sourced income.

15%

Corporate Income Tax

12%

Personal Income Tax

15%

Sales Tax

15%

VAT

Social Security

Jointly developed by the Ministry of Finance, the World Bank and UNICEF in Uzbekistan, the Single Registry is a management information system developed to enhance the social protection system through reducing barriers in accessing social protection through process digitalization.

12%

Social Security Rate

12%

Social Security Rate for Employers

0%

Social Security Rate for Employees

Employment Law

The Labor Code regulates labor requirements and behaviors, paying attention to employee interests, employers as well as fair and safe labor conditions.

Employment Agreement

Fixed term employment contracts may provide for a mutual obligation of both parties to pay a penalty for any early termination by either party.

Working condition

Supplementary employee benefits include healthcare, gymnasiums, virtual care, mental health training and more.

Leaves

The Labor Code permits the granting of leave in connection with the birth of a child including maternity leave, leave to an employee who adopts a child and leave without pay for childcare up until the age of 3 years.

Employment termination

Termination of an employment contract requires the employer coordinating with the trade union commitment or other representative body of employees and providing other parties with sufficient notice.

14 days

Minimum notice period for terminating an employee

9

Total number of public holidays

40

Working hours per week

2 days

Total number of days for Compassionate & Bereavement Leave

Immigration

A visa-free regime has been established for the entry of tourists from 86 countries around the world. Investors who contribute at least USD$200,000 may be able to enter on an ‘investment visa’. Otherwise, foreign citizens and stateless persons can enter and transit only with entry visas.

Residency permits

There has been talk about the introduction of a procedure to provide residence permits to foreign investors subject to investment, which in the case of real estate acquisition, is for not less than $100,000, $200,000 or $400,000 depending on the specific region. In respect of other investments, it must be for at least $400,000. A residence permit for foreign citizens is issued for a period of five years with possibility of extension.

Work Permit Validity

1 year

Required Documents

A passport that’s valid for at least three months

A copy of the information page of the applicant’s passport

Two color passport photos

A duly completed visa application form

An employment contract with a company based in Uzbekistan

Proof of the applicant’s work history, such as letters of reference from former employers

Proof of accommodations in Uzbekistan, such as a signed copy of a lease

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

Build the best team and hire top talent compliantly in Uzbekistan. Get in touch with Uzbekistan 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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