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Hiring in Kazakhstan
When negotiating terms of an employment contract and offer letter with an employee in Kazakhstan, it may be useful to keep the following in mind.
Employment contracts in Kazakhstan
It is legally required to put a written employment contract in place in Kazakhstan, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. Employment contracts may be for fixed or indefinite.
An offer letter and employment contract in Kazakhstan should always state the salary and any compensation amounts in Kazakhstani tenge rather than another currency.
Working hours in Kazakhstan
The work week should generally not exceed 40 hours, and overtime should not exceed 2 hours a day.
Holidays in Kazakhstan
Kazakhstan celebrates 12 national holidays:
- New Year’s Day
- Orthodox Christmas
- Women’s Day
- Nauryz/Spring Equinox
- Unity Day
- Victory Day
- Defender’s Day
- Capital Day
- Constitution Day
- Kurban-Ait
- First President’s Day
- Independence Day
Vacation days in Kazakhstan
Employees are entitled to a minimum of 24 days of paid annual leave. Vacation compensation should be paid at least 3 days before the employee goes on leave.
Kazakhstan sick leave
Employees are entitled to employer-paid sick leave. Sick leave payment is determined by multiplying the average daily earnings by the number of working days attributable to the period of illness. Earnings are taken into account for the last year or for the time actually worked.
Maternity/paternity leave in Kazakhstan
Expecting employees are generally entitled to 70 calendar days of employer paid leave before the birth and 56 days after the birth, or 70 days for a multiple birth.
Fathers are generally entitled to unpaid paternity leave.
Health insurance in Kazakhstan
Kazakhstan has moved towards a single-payer, universal healthcare system that is partially funded through the government’s budget and partially by employers and employees.
As of 2020, employers are required to contribute 2% of payroll. Employees are also required to contribute 2% of their wage as of 2021.
Kazakhstan supplementary benefits
Some common employee benefits in Kazakhstan are:
- Housing allowance
- Transportation allowance
- Company car
- Education allowance
Bonuses
Annual bonuses are common in Kazakhstan.
Termination/severance in Kazakhstan
Probationary periods of up to 3 months are permitted.
Employment contracts may be terminated by the employer for specific reasons as outlined in the Kazakhstan Labor Law. The employee must be notified in writing and must be given at least 1 month’s notice. Depending on the reason for termination, a severance payment may also be mandated by law.
Paying taxes in Kazakhstan
As of Jan. 1, 2024, some tax indicators in Kazakhstan changed. The monthly calculation index increased to KZT 3,692 (previously KZT 3,450), and the minimum wage also increased to KZT 85,000.
- Employee taxes: The maximum tax to the pension fund of 10% is now KZT 425,000 (previously KZT 350,000). The maximum tax on medical insurance (2%) is now KZT 17,000.
- Employer taxes: The maximum employer tax (social contribution 3.5%) is now KZT 20,825 (previously 17,150). The maximum employer tax (medical insurance 3%) is now KZT 25,500.
- Pension: The mandatory pension contribution for employers is 1.5% of the employee’s salary.
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading Global Growth Platform™. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
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