Kyrgyzstan – Employer of Record
Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Kyrgyzstan. Your candidate is hired via Globalization Partners’ Kyrgyzstan 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 Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Kyrgyzstan 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 Kyrgyzstan.
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. Globalization Partners allows you to harness the talent of the brightest people in 150 countries around the world, quickly and painlessly.
Kyrgyzstan is a small, mountainous, landlocked country located in Central Asia. The Silk Road passes through Kyrgyzstan, making it historically and important stop on the trade route. 6 million people live in Kyrgyzstan, 4 million of whom speak Kyrgyz which is now the primary government language; the remainder speak Russian.
When negotiating terms of an employment contract and offer letter with an employee in Kyrgyzstan, it may be useful to keep the following in mind:
Kyrgyzstan celebrates 11 national holidays:
- New Year’s Day
- Orthodox Christmas
- Homeland Defenders Day
- International Women’s Day
- Nowruz (Iranian or Persian New Year)
- Labor Day
- Constitution Day
- Victory Day
- Orozo Ait
- Independence Day
- Kurban Ait
Working Hours in Kyrgyzstan
In general, the work week is 40 hours: 5, 8-hour days.
Vacation in Kyrgyzstan
Employees are generally entitled to 4 weeks of paid annual leave, which can be taken all at once or 2 weeks at a time.
Sick Leave in Kyrgyzstan
In general, employees are entitled to paid sick leave.
Maternity/Paternity Leave in Kyrgyzstan
Female employees are entitled to 136 calendar days of maternity leave, 70 days to be used before the birth and 56 calendar days after the birth. Women are paid through the state social insurance.
Employees may also be eligible for unpaid maternity leave until the child reaches 18 months of age, and this can be increased by an additional 18 months. Any relative of the child is generally entitled to take this leave or to work part time or at home during maternity leave.
Termination/Severance in Kyrgyzstan
Probationary periods are limited to 3 months, or for managers and similar positions, 6 months. Either party can terminate employment during the probationary period by giving 3 days’ written notice.
Employees holding indefinite term contracts may be terminated based on the grounds stated in the labor code. The written notice period is dependent on the cause for termination.
Employees are generally entitled to a severance payment, the amount of which is dependent on the reason for termination.
Taxes in Kyrgyzstan
Employees must contribute 10% of their wages to social security.
Employers contribute 17.25% of wages as follows:
- 15% to the pension fund
- 2% to the compulsory medical fund
- 0.25% to the healthcare fund
Health Insurance in Kyrgyzstan
Kyrgyzstan provides free, primary health care to all citizens. Hospital care requires a co-payment.
Employment Contracts in Kyrgyzstan
In general, fixed-term contracts should not be for more than 5 years.
It is legally required to put a written employment contract in place in Kyrgyzstan, 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 Kyrgyzstan should always state the salary and any compensation amounts in Kyrgyzstani Som rather than a foreign currency.
This information is provided as general accepted information and is not intended as advisory services.
Why Globalization Partners
Establishing a branch office or subsidiary in Kyrgyzstan to engage a small team is time-consuming, expensive and complex. Labor law in Kyrgyzstan has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Kyrgyzstan. 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 Kyrgyzstan PEO and Global Employer of Record Platform provides you peace of mind so that you can focus on running your business.
If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Kyrgyzstan, please contact us.