EWS helps you to hire an international workforce quickly and compliantly, without setting up a legal entity locally. If you’d like to get in touch about our employer of record solution in Uzbekistan, click here
Introduction – Uzbekistan
Capital – Tashkent
Currency – Uzbekistani So’m (UZS)
Population – 34.23 Million
GDP – $57.71 Billion
Language – Uzbek
Major Religions – Islam
Uzbekistan, officially Republic of Uzbekistan is a country located in Central Asia. It lies mainly between two major rivers, the Syr Darya (ancient Jaxartes River) to the northeast and the Amu Darya (ancient Oxus River) to the southwest, though they only partly form its boundaries. Uzbekistan is a double land-locked nation. There are only two such countries in the world, the other one being Liechtenstein in Europe.
Uzbekistan is home to five different UNESCO World Heritage sites. The country is also the world’s second-largest cotton exporter and fifth largest producer. Other exports include gold, oil, and natural gas as well as uranium. Interestingly, handshakes are only acceptable as a greeting between two men. An Uzbek woman is greeted by bowing to her with your right hand placed over your heart.
Contract of Employment
In Uzbekistan written employment contract are required by law. The employment agreements should include all the terms of employment, the compensation and benefits along with the terms for ending employment.
Fixed terms agreements must outline any limitations such as the duration of the agreement. A fixed term agreement can only be signed once, any extension would be considered an indefinite agreement.
Indefinite agreements should outline the final months payment and the payment of unused annual leaves, in the event of a mutual agreement to end the employment. The agreement should also outline the terms in the event of a dismissal.
Probation Period
Up to a maximum of 3 months.
Termination
The mutually agreeable notice period in employment contracts is generally 1 month.
Termination periods vary depending on the reason:
– 2 months notice if the employment agreement is being terminated due to redundancy.
– 2 months notice if there is a change in ownership which results in termination.
– 2 weeks notice if the termination is due to health reasons or due to lack of qualification/ability to perform the role.
– 3 days notice for gross misconduct.
Payments in lieu of notice can be made.
Working Hours
40 hours per week, Monday to Friday.
Overtime
Any hours worked over 40 hours per week is considered overtime and has to be agreed upon in the employment contract. The overtime rate is 2x the normal rate of pay.
Annual Leave
An employee is entitled to 15 days of annual leave once the employee has completed 6 months of continuous service.
Sick leave
There is no limit on the number of sick leaves an employee is entitled to. The employer will pay 60% to 80% of the employees average earnings, depending on the reason for sickness and what has been agreed upon in the employment contract. Employers can deduct sick leave paid to employees from their taxable income.
Maternity Leave
Female employees are entitled to 126 days of paid maternity leave. 70 days taken prior to the due date and 56 days taken after giving birth.
There is no provision for paternity leave.
VAT / GST:
The VAT rate is 15%.
Income Tax
Income tax is 12% flat rate for all the earnings of an employee.
Employer/Employee Contributions
Employer contributions is 12.10%:
Social security – 12%
Pension – 0.10%
Employee contribution is 6%:
Social security – 4%
Unemployment insurance – 0.50%
Housing loan regime – 1%
Employee training contribution (INCES) – 0.50%
Public Holidays
There are 9 paid public holidays in Uzbekistan.
Severance Pay
Severance pay is 1 months salary for every 2 years of service.
Work and Residence Permits (Expatriates)
The employer local employer in Uzbekistan must apply for the visa/work permit (IM-1 Visa) for any foreign worker. The work permit is valid for 1 year and can be extended for the same duration.
Lithuania – Employer of Record
Kosovo – Employer of Record
Finland – Employer of Record
Namibia – Employer of Record
Nepal – Employer of Record
Spain – Employer of Record
Latvia – Employer of Record
Ireland – Employer of Record
Cyprus – Employer of Record
Czech Republic – Employer of Record
Italy – Employer of Record
Indonesia – Employer of Record
South Africa – Employer of Record
Tunisia – Employer of Record
Bosnia – Employer of Record
Moldova – Employer of Record
Five Tips For Improving Employee Engagement
Netherlands – Employer of Record
Germany – Employer of Record
France – Employer of Record
Portugal – Employer of Record
Bulgaria – Employer of Record
Austria – Employer of Record
Hungary – Employer of Record
Slovenia – Employer of Record
INCLUSIVITY IN THE TEAM MAKES EVERYONE WIN
Thailand – Employer of Record
Sri Lanka – Employer of Record
The Significance of an Employer of Record
Greece – Employer of Record
Mexico – Employer of Record
4 Reasons to Outsource Your Payroll
Five Recruitment Trends 2023
Malaysia – Employer of Record
Skill-Based Hiring and Benefits
Malta – Employer of Record
How To Practice Inclusive Recruitment
Israel – Employer of Record
Macedonia – Employer of Record
Jordan – Employer of Record
Macau – Employer of Record
Peru – Employer of Record
The Importance of Employer Branding
Bahrain – Employer of Record
South Korea – Employer of Record
Recruiting during a recession
Philippines – Employer of Record
USA – Employer of Record
Japan – Employer of Record
How To Setup A Business in 2023
Norway – Employer of Record
Managing Overseas Projects In 2023
Reason Of Expanding Your Workforce Globally
Croatia – Employer of Record
Colombia – Employer of Record
5 Ways To Speed Up Your Hiring Process
Egypt – Employer of Record
3 Ways To Streamline An Interview Process
Russia – Employer of Record
Saudi Arabia – Employer of Record
Hong Kong – Employer of Record
An Effective Hybrid Work Model
Turkey – Employer of Record
UAE – Employer of Record
Pakistan – Employer of Record
7 Things to Consider Before Accepting a Job
Kazakhstan – Employer of Record
3 Reasons to Encourage Employees to Generate Employer Brand Content
Denmark – Employer of Record
Sweden – Employer of Record
Bangladesh – Employer of Record
Kuwait – Employer of Record
How To Hire In The Age Of Hybrid Working
Australia – Employer of Record
Oman – Employer of Record
Qatar – Employer of Record
Ukraine – Employer of Record
Diversity – A Vital Hiring Strategy
Owning Every Moment of Your Hiring Experience
Serbia – Employer of Record
Maldives – Employer of Record
India – Employer of Record
Argentina – Employer of Record
Uzbekistan – Employer of Record
Belarus – Employer of Record
Brazil – Employer of Record
Chile – Employer of Record
Armenia – Employer of Record
3 Steps To Company Formation In The UK & Abroad
Romania – Employer of Record
Canada – Employer of Record
Morocco – Employer of Record