How to hire and pay employees in Kazakhstan

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Kazakhstan Facts and Stats

Currency

Kazakhstani Tenge is the official currency of Kazakhstan. Its currency symbol is KZT.

Employer Costs

Estimated at 21% of employees salary.

Languages

Kazakh is the official language of Kazakhstan.

Population

The population of Kazakhstan is 19.8 Million.

Payroll frequency

Employees are paid monthly.

Hiring

Grow your team in Kazakhstan

No entity, no problem

To start growing your team in Kazakhstan, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.

Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Kazakhstan

Hiring employees in Kazakhstan offers a mix of advantages and challenges. The country provides access to a growing and diverse talent pool, with many professionals skilled in sectors like oil and gas, mining, and IT. Labor costs are generally lower compared to Western countries, offering cost-effective staffing solutions. Additionally, Kazakhstan’s strategic location at the crossroads of Europe and Asia provides valuable logistical and business advantages. Similarly, many professionals, especially in larger cities like Almaty and Nur-Sultan, are fluent in English, Russian, or both. However, employers must navigate a complex regulatory environment and labour laws, which can be challenging for foreign companies. There may also be concerns about varying levels of infrastructure development across the country, which could impact business operations.

Why Kazakhstan is good for remote workers

Kazakhstan’s strategic location between Europe and Asia provides time zone advantages for businesses operating across these regions, facilitating better overlap in working hours for international teams. Moreover, the country has a well-developed digital infrastructure in major urban centres, supporting efficient remote work setups. These factors make Kazakhstan a compelling choice for companies looking to expand their remote workforce with skilled professionals.

Start growing your remote workforce now

Employer Costs
Social Security Contributions:10%.
Medical Insurance:1%.
Professional Training Fund:1%.
Unified Social Tax:9%.
Benefits

Mandatory Benefits

PTO.

Pension.

Employment Insurance.

Social Security.

Employment

Probation

There is a mandatory probation period of 3 months in Kazakhstan.

Emerald Technology can onboard employees in Kazakhstan within 48 hours.

Restrictive Covenants

In Kazakhstan, restrictive covenants in employment contracts are permissible but must adhere to certain legal standards to be enforceable. The main types of restrictive covenants include:
Non-Compete Clauses:
Scope: Must be reasonable in terms of geographic scope, duration, and the type of activities restricted. Generally, non-compete clauses should not exceed 1 year in duration.
Compensation: Employees should receive compensation for the non-compete period to ensure fairness.
Non-Solicitation Clauses:
Clients and Customers: Employees may be restricted from soliciting the company’s clients or customers for a specified period after leaving the company.
Employees: Employees may also be prohibited from soliciting current employees to join a competing business.
Confidentiality Agreements:
Scope: Employees are restricted from disclosing confidential or proprietary information obtained during their employment. This covenant usually extends indefinitely as long as the information remains confidential.

Insurance
01.

Health Insurance:

The Mandatory Health Insurance system in Kazakhstan was established in 2020 in order to provide universal health coverage for all residents to make accessibility and quality of healthcare services more enhanced. All citizens and legal residents are required to enroll on this system which covers numerous services such as outpatient care, inpatient care, preventive services, emergency services and medications. Employees contribute 1% of their gross salary and employers contribute 3% of the employee’s gross salary.

02.

Social Security Contributions:

In Kazakhstan, social security contributions are managed by the State Social Insurance Fund and the Mandatory Pension Fund and the contributions cover unemployment support, pension benefits, disability benefits, survivor benefits and health insurance. It is mandatory for all employees to contribute 10% of their gross salary to the Mandatory Pension Fund and the employers contribute 13% of the employee’s gross salary.

Leave Policy
01.

Maternity Leave:

In Kazakhstan, female employees are entitled to 126 calendar days of maternity leave, which includes 70 days before the expected delivery date and 56 days after childbirth. During this period, employees receive maternity benefits from the Social Insurance Fund, which is typically calculated based on their average earnings.

02.

Paternity Leave:

There is no mandatory obligation for employers to provide paternity leave.

03.

Parental Leave:

Employees can request unpaid parental leave until the child turns 3 years old.

04.

Sickness Leave:

In Kazakhstan, employees are entitled to sick leave with partial pay starting from the 4th day of illness. For the first three days, sick leave is unpaid. From the 4th to the 30th day, employees receive a benefit of 60% of their average salary, and from the 31st day onward, the benefit increases to 80%. Payments are made through the Social Insurance Fund.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Kazakhstan within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Notice Periods:

There is a mandatory 1 month notice period in Kazakhstan.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance Pay:

All employees are entitled to 30 days full salary as severance pay if they are subject to contract termination.

Time off

Statutory Time off

Full time employees in Kazakhstan are entitled to 24 days of paid annual leave.

Public Holidays

  • New Year’s Day.
  • Eastern Orthodox Christmas.
  • International Women’s Day.
  • Nauryz Holiday.
  • Unity Day.
  • Defender of the Fatherland.
  • Victory Day.
  • Eid Al Adha.
  • Day of the Capital.
  • Constitution Day.
  • Republic Day in Kazakhstan.
  • Kazakhstan Independence Day.
Emerald Technology can onboard employees in Kazakhstan within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage:

437.50 KZT per hour.

02.

Working Time and Overtime:

The standard working week in Kazakhstan is 40 hours – 5 days of 8 hours. Overtime is paid at 150% of the regular hourly rate for hours worked beyond the standard 40-hour workweek. Overtime on rest days or public holidays is paid at 200% of the regular hourly rate.

03.

Salary Payments:

Employees are usually paid monthly.

04.

Bonuses in kazakhstan:

  • Up to 3,200,000: 10%,
  • 3,200,001 to 8,000,000: 15%,
  • 8,000,001 to 20,000,000: 20%,
  • Above 20,000,000: 25%,
05.

Income Tax:

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