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Kazakhstan – Employer of Record

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Country Introduction – Kazakhstan

Capital – Nur-Sultan (formerly Astana)
Currency – Kazakhstani Tenge (KZT)
Population – 18.75 Million
GDP – $169.8 Billion
Language – Russian / Kazakh
Major Religions – Islam

Republic of Kazakhstan is a country located in Central Asia. It is bounded on the northwest and north by Russia, on the east by China, and on the south by Kyrgyzstan, Uzbekistan, the Aral Sea and Turkmenistan. The Caspian Sea bounds Kazakhstan on the southwest. Kazakhstan is the largest country in Central Asia and the ninth largest in the world. Between its most distant points, Kazakhstan measures about 1,820 miles. While Kazakhstan was not considered by authorities in the former Soviet union to be a part of Central Asia, it does have physical and cultural geographic characteristics similar to those of the other Central Asian countries.

The capital is Nur-Sultan, formerly Astana. Kazakhstan declared independence on December 16, 1991. Kazakhstan has an abundance of natural resources and minerals. It has the world’s second largest uranium reserves.

The border between Russia and Kazakhstan is the longest continuous land border in the world, 7512.8 km. Lake Balhkash is situated in Kazakhstan, half of Lake Balkhash, one of the largest lakes in the world, consists of fresh water, the other half of the salt water.

Kazakhstan has three Unesco World Heritage sites – the Saryarka plains, a world-famous birdwatching site; Tamgaly, home to 5,000 ancient rock carvings, and the Mausoleum of Khoja Ahmed Yasawi. The mausoleum in the city of Turkistan is incomplete, having been started in 1389, and work halted in 1405.

Interestingly, Kazakhstan’s national drink is fermented horse milk.

Contract of Employment

It is a legal requirement to put all employment contract in writing in local language. The contract must specify the salary, bonuses, allowances, termination period, probation period and any other benefits the employee may be entitled to.

Probation Period

Up to a maximum of 3 months.

Termination

1 month notice must be given in writing.

In the event of redundancy a 2 month notice must be given in writing.

Working Hours

40 hours per week

Overtime

Overtime must be agreed in writing. 2 hours per day as a maximum up to 12 hours per month. Overtime is paid at a rate of 1.5X salary.

Annual Leave

24 calendar days per year.

Sick leave

3 paid sick days per year. For a serious illness this increases to 6 days.

Maternity Leave

Expecting mothers are entitled to 126 days of paid maternity leave. 70 days are taken before the expected birth and 56 days are taken after birth. In the event of multiple child births the leave after birth is extended to 70 days. All leave is paid for by the employer at full the salary rate.

There is no provision for paternity leave.

VAT / GST:

The current VAT rate is 12%. This tax is applicable to the sales value of goods, works, and services, as well as to imports. Exports of goods and international transportation services are taxed at 0% VAT.

Income Tax

10% flat rate

Employer/Employee Contributions

Employer contributions – 20%

Social insurance – 3.5%
OMIC – 2%
OPC – 5%
Social tax – 9.5%

Employee contribution – 11%

OMIC – 1%
OPC – 10%

Public Holidays

There are 12 public holidays in Kazakhstan.

  • 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
  • Kurban-Ait
  • First President’s Day
  • Independence Day (2 days)

Severance Pay

There is no legal provision for severance pay.

Work and Residence Permits (Expatriates)

Nationals of Russia, Belarus, Armenia and Kyrgyzstan are exempt for work permit visa requirements.

Business visa must be obtained prior to travel to Kazakhstan for nationals of all countries except those mentioned above. A business visa can be single, double or multiple entry. The validity of a business visa varies in line with the business visa type.

Work permits must be obtained for skilled employees who intend to live/work in Kazakhstan by the local employer. The work permit is valid from one to three years based on the position of the foreign employee. Documents required to obtain a work permit are;

–  A letter confirming the employer’s invitation for the foreign worker.
–  A notarised copy of the local employer’s current charter.
–  A notarised copy of the work permit.
–  The employer’s power of attorney.
–  Evidence that the employer has no outstanding taxes.
–  Proof of payment for the consular fee.

After the work permit is issued, the employee has to visit the Kazakhstan embassy in their home country and apply for an entry visa. To support the application, the employee must provide the employment contract, CV and proof of accommodations in Kazakhstan.

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