Kazakhstan
Table of Contents
Kazakhstan PEO & Employer of Record
WeHG provides an International PEO and global Employer of Record service in Kazakhstan to companies willing to enter the Kazakhstan market or hire local/expat employees in this country.
Traditional approach requires establishing a subsidiary in Kazakhstan. However our solution allows you to start the operations in Kazakhstan within days hence save time and money. WeHG will recruit candidates on your behalf, while you retain full operational control over their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.
Kazakhstan fast facts
Population, million: 18,776,707
Land area: 2.725 million km²
Capital: Nur-Sultan
Local currency: Kazakhstani tenge (KZT)
GDP per capita:$ 11250.00
GDP in currency:$ 38.7 billion
Legislation of the Republic of Kazakhstan on the legal status of foreigners is based on the Constitution of the Republic of Kazakhstan and determines, in accordance with it, the basic rights and duties of foreigners, the procedures for their entry into the Republic of Kazakhstan, stay and movement within its territory and departure from the Republic of Kazakhstan.
Hiring, Negotiating and Doing Business in Kazakhstan
Necessity of written employment contract
An employment contract must be in writing.
Different forms of engagement: employment, contracting, work with private entrepreneur
The employer from Kazakhstan can hire foreign citizens on the basis of a valid work permit. The number of work permits issued cannot exceed the annual quota for attracting foreign labor, established annually by the Government of Kazakhstan.
Kazakhstan Employment Contract
Types of employment agreements
There are two main types:
– for an indefinite period;
– fixed-term contract.
Kazakhstan working hours
40 hours per week.
Overtime
Mothers are entitled to 140 days of paid leave, or 155 / 180 days in the case of multiple births or complications with childbirth. Leave can be taken during and post pregnancy.
Vacation leave in Kazakhstan
Workers are entitled to paid leave of 24 business days per year. Worker may accumulate vacation, but it is desirable that this amount does not exceed 48 days, as prohibited by the legislation, as an employee cannot work without vacation for more than 2 years.
Kazakhstan Maternity Leave
Mothers are entitled to 70 calendar days before childbirth, and 56 days after.
Kazakhstan Severance Laws
There are 25 ways to dissmis employment contract by employer’s will. However, almost all may influence worker negatively and almost all reasons treated as unfair worker’s behavior.
There is no severance payment from employer side, notice period – 1 month.
The most comfortable way to terminate employment – by worker’s will or by mutual agreement.
Kazakhstan Tax
An individual’s income in Kazakhstan is taxed at a flat rate of 10% (dividend income taxed at 5% unless specifically exempted).
Social tax is payable by hirers in respect of worker’s (both locals and expatriates) at 9.5% on top of the worker’s gross salary.
Health Insurance Benefits in Kazakhstan
Foreigners need to apply for a voluntary health insurance policy to receive medical assistance.
Additional Benefits in Kazakhstan
Giving employees benefits should include more than just the statutory benefits required by law. Your employees should also receive additional benefits that will encourage them to stay in their positions longer. Some of the more common supplemental benefits include:
- Housing allowance
- Transportation allowance
- Company car
- Education allowance
Kazakhstan Holidays
Public holidays
- New Year
- International Women’s Day
- Nauryz holiday
- Kazakhstan’s People Solidarity Holiday
- Defenders’ day
- Victory Day
- Capital Day
- Constitution Day of the RK
- First President Day
Why Choose WeHireGlobally
WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.
FAQ Kazakhstan
The Employee shall work a 40 hours five day work week (Monday – Friday), with an 8 hour working day, which commences at 9.00 a.m. and ends at 6.00 p.m. with one hour off for lunch.
Public holidays
- New Year
- International Women’s Day
- Nauryz holiday
- Kazakhstan’s People Solidarity Holiday
- Defenders’ day
- Victory Day
- Capital Day
- Constitution Day of the RK
- First President Day
An individual’s income in Kazakhstan is taxed at a flat rate of 10% (dividend income taxed at 5% unless specifically exempted).
Social tax is payable by employers in respect of employees (both locals and expatriates) at 9.5% on top of the employee’s gross remuneration.
Starting from 1 January 2020, employer’s OMIC are increased to the rate of 2%. All employers, including branches and representative offices, should pay OMIC for all their employees, including Kazakhstan citizens and foreigners holding Kazakhstan residence permit, or citizens of member countries of the Eurasian Economic Union. The monthly income accepted for calculating deductions and contributions should not exceed ten times the minimum monthly wage (in 2019, the calculation of income is not more than KZT 425,000). Until 2019, the maximum limit was 15 times the minimum monthly wage.