G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Kazakhstan. Your candidate is hired via G-P’ Kazakhstan PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution and Global PEO service enables customers to run payroll in Kazakhstan while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Kazakhstan.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Kazakhstan is a former Soviet state and is located in Eurasia. It is the largest landlocked country in the world, with a land area greater than that of all of Western Europe. Although nearly 19 million people live in Kazakhstan, its population density is among the lowest of any country at only 18 people per square mile.
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
Employment contracts may be for fixed or indefinite terms.
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. An offer letter and employment contract in Kazakhstan should always state the salary and any compensation amounts in Kazakhstani tenge rather than a foreign currency.
Working Hours in Kazakhstan
The work week should generally not exceed 40 hours, and overtime should not exceed 2 hours in one day.
Holidays in Kazakhstan
Kazakhstan celebrates 12 national holidays:
- New Year’s Day (2 days)
- Orthodox Christmas
- Women’s Day
- Nauryz/Spring Equinox (3 days)
- Unity Day
- Victory Day
- Defender’s Day
- Capital Day
- Constitution Day
- First President’s Day
- Independence Day (2 days)
Vacation Days in Kazakhstan
Employees are generally 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 generally 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
Female 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 health care 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
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 one month’s notice. Depending on the reason for termination, a severance payment may also be mandated by law.
Paying Taxes in Kazakhstan
Employees contribute 10% of their wages to social security.
Employers generally must pay a social tax of 9.5% of payroll. This includes the employer’s social security contributions.
Employers are generally responsible for withholding personal income tax.
This information is provided as generally accepted information and is not intended as advisory services.
Establishing a branch office or subsidiary in Kazakhstan to engage a small team is time-consuming, expensive and complex. Kazakhstani labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Kazakhstan. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Kazakhstan PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Kazakhstan, please contact us.