Tajikistan PEO & Employer of Record

Companies seeking to join the Tajik market or engage local or foreign personnel in this nation can take advantage of WeHG’s international PEO and Global Employer of Record services in Tajikistan.

According to the conventional method, a subsidiary must be established in Tajikistan. Yet, our solution enables you to launch operations in Tajikistan in a matter of days, saving you both time and money. In exchange for complete operational control over the candidates’ work, WeHG would hire them on your behalf. Legally speaking, they would therefore be our workers, paid locally, in full compliance, but they would work on your behalf.

Tajikistan fast facts

Population: 9, 750, 065
Land area: 142,326 km²
Capital: Dushanbe
Local currency: TJS (Tajikistani somoni)

GDP per capita: $1,131.183
GDP in currency: $3.6 billion

Tajikistan, officially the Republic of Tajikistan, Tajik Tojikiston or Jumhurii Tojikiston, Tajikistan also spelt Tadzhikistan, country lying in the heart of Central Asia. 

It is bordered by Kyrgyzstan on the north, China on the east, Afghanistan on the south, and Uzbekistan on the west and northwest. Tajikistan includes the Gorno-Badakhshan (“Mountain Badakhshan”) autonomous region, with its capital at Khorugh (Khorog). 

Tajikistan encompasses the smallest amount of land among the five Central Asian states, but in terms of elevation, it surpasses them all, enclosing more and higher mountains than any other country in the region. Tajikistan was a constituent (union) republic of the Soviet Union from 1929 until its independence in 1991. 

Federal labour and employment law applies to:

• banking;
• interprovincial and international transportation;
• broadcasting;
• telecommunications;
• aeronautics; and
• a few other limited areas.

Hiring, Negotiating and Doing Business in Tajikistan

The necessity of a written employment contract

It is preferable to utilize a written contract in Tajiki outlining the conditions of the employee’s pay, perks, and termination obligations. You might also utilize verbal employment agreements. The employment agreement must specify the wage and any other remuneration in Tajik currency (solomoni).

Different forms of engagement: employment, contracting, work with a private entrepreneur

Different forms of engagement: employment, contracting, and work with a private entrepreneur. There’re two types of contracts in Tajikistan which allow job-seekers to choose the most convenient for their career growth:
• Non-Fixed-Term Contracts (labour contracts)
Standard employment contracts are not generally time-restricted. The duration of the Probation Period can be from 3 to 6 months. Legally, companies are up to following the Law for termination which must be submitted in writing one month before the end of the contract. The same timeframe is required for the Notice Period.
• Fixed-Term Contracts (labour and service contracts)
Companies are free to offer fixed-term contracts, which automatically expire on a specific date. There’s no dismissal required to terminate this type of contract. Choosing this type of contract allows the employer to decide whether to renew the contract or not. The maximum duration of this type of contract is 6 months. In addition, if the total duration of the contract does not exceed the maximum of six months, a fixed-term contract may be extended up to two times.

Tajikistan Employment Contract

Types of employment agreements

Labour contract is signed for the following terms:

• indefinite term; 
• fixed term – not less than one year, except the cases envisaged by paragraphs 3, 4 and 5 of this Part; 
• for the fulfilment of obligations of an absent employee, whose job is held in accordance with this Code;
• for implementation of a certain work; 
• implementation of seasonal works

Tajikistan working hours

• The length of daily working time (shift) cannot exceed:
• 8 hours for a regular working environment
• 6 hours for persons with disabilities

In the case of a six-day working week the length of daily work cannot exceed:

• 7 hours – if the weekly norm is 40 hours
• 6 hours – if the weekly norm is 35 hours
• 4 hours – if the weekly norm is 24 hours

Overtime

• It shall be prohibited to work overtime in case of 12-hour shifts and also the works with especially severe and harmful conditions.
• Overtime cannot exceed two days continuously: –
• Two hours for workers with severe or harmful conditions
• four hours for other work
• Overtime for every employee shall not exceed 120 hours a year

Termination of Employment in Tajikistan

1. Labour contracts can be terminated in the following cases:
   • by the mutual agreement of parties
   • by the initiatives of the Employee
   • by the initiatives of the Employer
   • after its expiration
   • in circumstances beyond the control of parties
   • transfer of Employee to another job (position) based on his/her selection or appointment to another position (post), which excludes the possibility of continuation of the labour contract, except in the cases envisaged by the legislation of the Republic of Tajikistan.
2. The labour contract termination is documented by a document issued by the Employer except for the cases when it is terminated due to the death of the Employer or the court declares the Employer – individual entity, home worker and domestic workers to have died or missing.
3. The Employer is obliged to inform the Employee in writing about the termination of the labour contract signed for an indefinite period
4. During the notification period, the Employee has the right to be absent from work not less than one day a week by holding his/her full salary to search for another job. 
5. By the agreement of the parties, the labour contract can be terminated for the outlined reasons before the end of the notification period by providing compensation equal to not less than average daily remuneration for every day remaining until the end of this period. 
6. The Employer is obliged to inform the relevant authorized public entity on labour and employment about the upcoming (expected) dismissal of staff by outlining their speciality, professional degree and salary size within the timelines defined by the legislation of the Republic of Tajikistan.

Notice Period in Tajikistan

• Employees can terminate an employment contract by giving a 2 weeks notice period.
• Employers can terminate an employment contract by either giving a 2 months notice period (in case of liquidation or organizational restructuring) or 1 month’s notice period (in case of lack of qualification or poor performance).

Vacation leave in Tajikistan

There’re 10 Public Holidays in Tajikistan: New Year, International Women’s Day, Nowruz (Persian New Year), Labor Day, Victory Day, Eid al-Fitr (End of Ramadan), National Unity Day, Eid al-Adha (Feast of Sacrifice), Independence Day, and Constitution Day. 

The rest time includes:

• breaks during the working day (rest, meal, in-shift and special rest); 
• breaks between working days (shifts); 
• weekends (regular weekends); 
• non-business holidays; and – leaves

Tajikistan Maternity Leave

According to Labor Code Article 164, women are entitled to maternity leave for a total of 70 calendar days, including the days leading up to and following birth. The time frame may be increased in difficult deliveries by up to 86 days and in cases of giving birth to two or more children, by up to 110 calendar days. Additionally, to maternity leave, there’s a maternity benefit which women are entitled to receive: it’s equivalent to 100% of the average wage of a recipient of the benefit and it includes a total period of maternity leave (notwithstanding of division of leave to pre and post-natal periods).

Tajik Severance Laws

• Fixed-term Labor Contract Termination: a fixed-term labour contract is terminated on the expiration date. This type of contract can be signed again (prolonged for another new period) if the Parties continue their labour relations after the expiry day and none of them requests its termination. Also, such an agreement is deemed to be continued for an indefinite period, if it doesn’t exist in the written form.

In the case of an employee’s substitution or position’s substitution which is kept for the employee, a fixed-term contract is terminated on the date of the return of the employee previously working for this job.

Signed for a certain activity labour contract is terminated after the work is accomplished.

• Fixed-term Labor Contract Early Termination: fixed-term labor contract can be terminated before its expiration for the reasons envisaged in the Tajik Labour Code (Articles 38 and 39). Taking into consideration such cases, employees can be prosecuted on penalty for breach in terms and conditions of the labor contract. In case of the labor contract is terminated before its expiration by the initiative of the employee or due to non-implementation of employment duties by the employee, payment of breach penalty is not provided by the Law.

Tajikistan Tax

• Personal income tax rates
The taxable income of a resident at the main place of work in excess of the amount of personal deduction is taxed at a rate of 12%. The employment income of non-residents is taxable at 20%.
Other taxable income is taxed at a rate of 15% without deductions, except for the social tax for the insured person.
• Corporate – Taxes on corporate income
All Tajik legal entities are subject to corporate income tax (CIT) in Tajikistan. Tajik residents are taxed on their worldwide income. Non-residents are subject to CIT in Tajikistan only on Tajikistan-source income. Non-residents operating through a permanent establishment (PE) are generally subject to the same CIT provisions.
CIT is computed by applying the statutory 18% rate to taxable income (13% for enterprises producing goods and 20% for the activities of financial institutions and mobile companies), which is calculated based on gross income decreased by allowed deductions and losses carried forward from previous periods.

Individuals are required to pay social tax, which is 1% of the salary. The employer is obligated to withhold and make social tax payments assessed on the same tax base at the rate of 25%. Individual entrepreneurs are taxed at the rate of 20% of income.

Health Insurance Benefits in Tajikistan

Talking about social guarantees, the employer has to follow such requirements: 

– provide workers with water and meal; 

– sanitary norms, providing workers with special areas for physical and psychological fatigue management, women’s personal hygiene room, and primary healthcare service points to manage accidents or sickness of employees in the workplace. 

Healthcare arrangement is defined by the Tajik Law and includes medical points, medical and sanitary units, hospitals; public social protection authorities, and institutions. 

Sickness benefit: 60% of earnings is paid with less than five years of work; 70% with five years or more; 100% in case of work injury or occupational diseases. 

Medical benefits: medical services are provided by public health organizations directly. Medical services include general and specialized care, hospitalization, laboratory services, dental care, maternity care, vaccinations, and transportation. Some medical providers require cost-sharing.

Additional Benefits in Tajikistan

Before entering a Tajik working market, take into consideration the main bonuses which are required by the Tajik Law and which you need to keep while searching for job-seekers: public holidays (10), paid annual leave (24 calendar days), additional paid time off for some special groups of employees ( those who work in harsh conditions, disabled employees, and workers under 18). Also, take into account parental leave (information is available upper) and a childcare benefit until the child turns 18 months old. 

General market practice benefits/additional allowances

The Tajik economy depends on employment and remittances from labor migrants. The main problems amongst employers who are entering the Tajik working market are a ”brain drain” and challenges in the local business environment. Still, Tajikistan improves its high-tech startup culture. Tajikistan shows a potential that has to be fulfilled by the growth of human capital, boosting accessibility of financing, and integration into international networks. Globalization provides such small markets with the integrational process which consequences have already become significant amongst countries in Central Asia and are characterized by how local startups can expand into other countries of the wider region, boasting a population of 72 million. Tajikistan, as a part of this economic system, takes an important role in the development of this region and shows a dynamic grassroots digital development.

Tajik Holidays

Non-working days in Tajikistan are defined by the Takik Labour Code (Holidays). Regarding the Law, there’re several types of works that can be carried out during Holidays: public services, urgent repair, reight load and discharge works. The procedure of non-working days determination (hours compensation on the working days) is defined by the Tajik Government.

The calendar of Tajikistan’s public holidays for 2023 is shown below.
• New Year’s Day January, 2
• International Women’s Day March, 8
• Nowruz March, 21 – 24
• Eid al-Fitr Likely the Evening of April, 22
• Labour Day May, 1
• Victory Day May, 9
• Day of Nationality Unity June, 27
• Eid al-Adha Likely Evening of June, 29
• Independence Day September, 9
• Constitution Day November, 6

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.