Employer of Record and Payroll Services in Kazakhstan 
Mercans-owned legal entity
We have our own legal entity to protect your business from risk and provide you and your employees with a distinctive experience.
We have our own legal entity to protect your business from risk and provide you and your employees with a distinctive experience.
Services available
- Employer of record
- Contractor management
- Global payroll
- In-country payroll
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
-10°C
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.
Corporate Income Tax
Personal Income Tax
Sales Tax
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.
Social Security Rate
Social Security Rate for Employers
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
Build the best team and hire top talent compliantly in Kazakhstan. Get in touch with Kazakhstan payroll outsourcing & PEO specialists for a free consultation!