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Global Payroll Team
Written by Global Payroll Team
Last updated May 1, 2026
Expert Reviewed
Turkmenistan map

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Mercans offers complete payroll, PEO and HR services in Turkmenistan

Despite periodic efforts to attract foreign investment, tight state control over the economy, limited transparency, and a challenging business environment continue to affect market entry and operations in Turkmenistan. The country remains heavily dependent on natural gas and related sectors, while foreign investors should pay close attention to local registration, labor, tax, and immigration rules.

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Doing Business in Turkmenistan

Turkmenistan remains a highly regulated market for domestic and foreign companies. Depending on the type of business, registration and approvals may involve multiple authorities rather than a single online registration system. Businesses should also be aware of continuing state regulation, practical compliance challenges, and sector-specific restrictions.

Entity Registration and Incorporation Requirements

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

Banking

Banking Hours: 9:30 am to 5:30 pm from Monday to Friday.

Working Week

The standard working week is generally 40 hours, commonly structured across five working days.

Labor Law

Labor issues are governed by the Labor Code of Turkmenistan, the Social Welfare Code, and a number of other regulations.

Main Industries

Natural gas, oil, petroleum products, textiles, food processing

GDP Growth

6.3%

Dates & Numbers

dd/mm/yyyy

Official State Name

Turkmenistan

Population

7.06 million

Capital

Ashgabat

Major Languages

Turkmen

Currency

Turkmenistan manat

Internet Domain

.tm

International Dialing Code

+993

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Turkmenistan
Ashgabat, TM
8:07 pm, May 3, 2026
28°C
scattered clouds
30 %
Wind Gust: 0 mph
Clouds: 40%
Sunrise: 6:08 am
Sunset: 7:58 pm

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Payroll

Turkmenistan uses employer withholding for payroll taxes and social contributions. Employers are generally required to withhold and remit individual income tax and other mandatory payroll-related deductions on behalf of employees. The flat personal income tax rate remains 10%.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports should be retained in line with applicable labor, tax, and accounting recordkeeping requirements

Reports

Employees receive paid annual leave of 30 calendar days

Annual Leave

Temporary incapacity for work is recognized by law and social protection rules, subject to certification and applicable benefits rules

Sick Leave

Maternity leave is governed by the Labor Code and related state allowance rules. There is no general statutory paternity leave provision in the Labor Code

Maternity & Paternity Leave

Employers are generally required to provide 2 months’ notice in redundancy or liquidation cases, while other cases may have shorter notice periods

Employee Termination

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

13th month salary

1,410 TMT per month

Minimum Wage

Overtime pay is regulated by the Labor Code and must be compensated at an increased rate

Overtime

In redundancy, liquidation, and certain other cases, severance pay is generally at least the employee’s average salary, with additional retained average pay possible for a limited period

Severance Pay

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Tax and Social Security

Residents are generally taxed on their worldwide income while non-residents are taxed in Turkmenistan only on income derived from Turkmenistan sources.

Tax

The general personal income tax rate is 10% and applies broadly to employment income and other taxable income. Employers are responsible for payroll withholding on employment income.

20%

Corporate Income Tax

10%

Personal Income Tax

15%

Sales Tax

15%

VAT

Social Security

Pension insurance and related payroll contributions are payable for local employees. Employers are responsible for withholding and remitting the applicable amounts.

22%

Social Security Rate

20%

Social Security Rate for Employers

2%

Social Security Rate for Employees

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Employment Law

The employer is required to observe the labor laws, conditions of the employment contract as well as any collective agreement applicable.

Employment Agreement

Workers must be provided with an employment contract at the start of their employment alongside the social, medical and other services connected with their provision of work. This contract sets out the basic mutual rights and obligations of the parties involved.

Working condition

The normal official workday is eight hours. Night work, shifts, and working-time arrangements are regulated by the Labor Code and the production calendar.

Leaves

Employees automatically receive annual basic leave of 30 calendar days per year. Certain categories of employees are entitled to longer annual leave or additional leave under the Labor Code.

Employment termination

If neither party demands termination of a fixed-term employment contract and the employee continues to work after the expiration of the agreement, the employment contract becomes indefinite.

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2 months

Minimum notice period for terminating an employee

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varies

Total number of public holidays

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40

Working hours per week

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As provided

Total number of days for Compassionate & Bereavement Leave

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Immigration

Foreign nationals generally need a visa and supporting invitation documentation to enter Turkmenistan for business or employment-related purposes, unless a specific exemption applies. Turkmenistan has also adopted legislation to introduce electronic visas, but employers should confirm the current practical procedure before travel.

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Residency permits

Stays of more than three days generally require registration with the State Migration Service of Turkmenistan. Non-compliance with immigration and registration requirements can lead to penalties or other consequences.

Work Permit Validity

Common visa validity can range up to 12 months depending on the category and entry type granted

Required Documents

A duly completed visa application form

Proof of identity

A passport that is valid for at least six months beyond the relevant invitation or visa period

A copy of the first page of the passport, signed by the applicant where required

A recent passport photograph

A letter of invitation from a business registered in Turkmenistan

Proof of payment of the visa registration fee

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

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

    What is an Employer of Record (EOR) in Turkmenistan and how does it support foreign companies?

    An Employer of Record in Turkmenistan allows international companies to hire employees locally without setting up a legal entity. The EOR becomes the official employer, managing employment contracts, payroll, tax filings, benefits, and compliance with Turkmenistan labour laws while the client focuses on daily business operations.

    Why should businesses use an EOR instead of establishing a legal entity in Turkmenistan?

    Using an EOR in Turkmenistan enables fast and cost-effective market entry. It eliminates the need for local company registration, reduces administrative expenses, and ensures full compliance with employment and tax regulations, allowing companies to operate efficiently and legally.

    How does payroll outsourcing in Turkmenistan ensure compliance with labor and tax regulations?

    Payroll outsourcing in Turkmenistan ensures accurate salary processing, timely tax deductions, and correct social security contributions according to local regulations. The service helps businesses meet all legal reporting and payment requirements under the Turkmen Labour Code and tax laws.

    Can an Employer of Record in Turkmenistan hire employees and manage work permits for international companies?

    Yes. An EOR in Turkmenistan can hire both local and expatriate employees, handle work permit and visa applications, and ensure compliance with immigration, employment, and tax regulations. This enables international companies to expand their teams quickly and legally.

    What are the main benefits of using EOR and payroll services in Turkmenistan for global expansion?

    Key benefits include fast market entry without entity setup, reduced administrative costs, full compliance with Turkmen labour and tax laws, access to local HR and payroll expertise, and flexible workforce management that supports business growth in Turkmenistan.

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