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Mercans offers complete payroll, PEO and HR services in Kyrgyzstan

A trade hub in the Central Asian region, Kyrgyzstan has created numerous free economic zones for the import, storage, production and sale of goods without taxes or custom duties. Kyrgyzstan has one of the fastest growing working populations in the world, thanks to the country’s high birth rate. While agriculture is strong, other key industries include textiles, hydro energy and tourism. However, at present time, a high degree of caution is advised due to the potential for civil unrest, threat of terrorism and high levels of crime.


Doing Business in Kyrgyzstan

A visa free regime is in place in order to create favorable conditions for tourism and business. Free economic zones afford special customs privileges for importing and exporting companies. Outside of the free economic zones, there are also a number of export promoting and facilitating schemes and the government has also undertaken a number of steps to streamline trade procedures.

Entity Registration and Incorporation Requirements

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


Banking Hours: 8:00 am to 4:00 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 piece of legislation affecting employment is the Labor Code which regulates labor rights, the management of work and the overseeing of employment disputes.

Main Industries

Small machinery, textiles, food processing, cement, shoes, lumber, refrigerators

GDP Growth


Dates & Numbers


Official State Name

Kyrgyz Republic


6.70 million



Major Languages



Kyrgyz som

Internet Domain


International Dialing Code


Bishkek, KG
1:28 pm, June 14, 2024
temperature icon 26°C
broken clouds
Humidity 37 %
Wind Gust: 9 mph


The minimum wage has been revised to increase effective January 2022.

It is acceptable to provide employees with online payslips


Payroll reports must be kept for 5 years


Employees receive paid annual leave of 30 days

Annual Leave

Employees are entitled to paid sick leave

Sick Leave

Employees are entitled to 18 weeks of paid maternity leave and there is no legal provision for paternity leave in Kyrgyzstan

Maternity & Paternity Leave

Employers are required to provide 3 days notice of termination of employment

Employee Termination

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

13th month salary

1,970.00 KGS per month

Minimum Wage

Overtime pay is set at 0.5x the employee's ordinary rate of pay for the first 2 hours of overtime


Employees are entitled to 12 months’ severance pay.

Severance Pay


Tax and Social Security

Citizens who are tax residents are taxed on their worldwide income but not residents and foreign workers are taxed only on Kyrgyzstan source income only. A flat rate of 10% is applied to most types of individual income. The social insurance system is further supported by new social assistance and labor market policies.


The tax burden on repatriation of profits by foreign investors has been reduced to conform to the tax rate for domestic investors.


Corporate Income Tax


Personal Income Tax


Sales Tax



Social Security

In addition to the health sector contingency plan, the government has increased policy packages to stimulate the economy and simplified procedures for unemployment benefit payments and provide greater temporary financial support for families with children under 16 years of age.


Social Security Rate


Social Security Rate for Employers


Social Security Rate for Employees


Employment Law

There are plans to increase the pensions and wages of public sector employees.

Employment Agreement

The basis of the employment relationship between worker and employer is based on the employment contract signed.

Working condition

Over the last few years including the COVID-19 pandemic, there has been less action by the government to protect jobs, workers and incomes. However, there have been some positive measures such as the prohibition of dismissal of workers and employees except for good reasons and some work arrangements are being adapted.


The working conditions typically take no account of workers with family responsibilities and include practices such as irregular working hours, systematic recalling from leave, negative attitude due to sickness of employees or their children and disregard of the needs of nursing mothers and parents with small children.

Employment termination

The employment contract is governed by the Labor Code and termination is possible by either party. However, if the parties agree to a service contract, this is governed by the Civil Code wherein termination is possible on the grounds of agreement between the parties, because of a court decision or force majeure.


3 days

Minimum notice period for terminating an employee



Total number of public holidays



Working hours per week


2 days

Total number of days for Compassionate & Bereavement Leave



Foreign workers of legal entities based in Kyrgyzstan, whether fully or partially owned by foreign companies, are subject to local laws and regulations. Such workers have the right to work and choose their trade provided they have appropriate supporting documentation. Employers may hire foreign nationals on the basis of employment permits. Those who stay and work temporarily are issued work permits provided their employer places a security deposit in a bank account specifically created by the migration authority to cover transportation costs of the foreign worker.


Residency permits

A fee is applied for employment or work permits, which is collected by the migration authority. Foreign worker quotas are set and approved by the government annually approximately four months before the start of the calendar year.

Work Permit Validity

1 year

Required Documents

A completed visa application form

A passport

One passport-size color photo

A letter inviting the individual to the Kyrgyz Republic

Payment of relevant visa fees

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

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