Employer of Record Services (EOR) in Uzbekistan
Uzbekistan is a country filled with great talent ready to work for your company but managing payroll, taxes, benefits and the local employment laws can be extremely difficult if you do not have local connections. TRUSS offers an Employer of Record service to make compliantly hiring and paying your workforce in Uzbekistan easy. Truss takes on the responsibility and legal risk that comes with employing global talent so your company can stay focused on growth.
Quick Facts About Uzbekistan
US Dollar
Uzbekistani So’m
| Currency | Uzbekistani So’m |
| Payroll Frquency | Monthly |
| Capital | Tashkent |
| Official Language | Uzbek |
Payroll + Taxation
PAYROLL CYCLE
In Uzbekistan, most commonly payroll occurs monthly with payment being on the last working day of the month.
Thirteenth-month payments are not mandatory. Employers can pay bonuses at their discretion.
INCOME TAX
Employee Income Tax is a flat rate of 12%.
EMPLOYER COST
The employer cost is 12% for social security and 0.10% for Pension.
Minimum Wage + Working Hours
MINIMUM WAGE
Uzbekistan has a national minimum wage of 980,000 UZS.
WORKING HOURS + OVERTIME
Typically, a work week in Uzbekistan consists of 40 hours worked over five or six days. Minors and employees in dangerous sectors commonly have working hours reduced.
When an employee is requested to work on holidays or to work more than the standard 40 hours per week, there are maximums in relation to the number of hours allowed. This is regulated by employment contracts and or collective agreements.
An overtime rate is stipulated in the employment contract and is commonly 200.00% of the employees’ regular rate of pay.
Paid Time Off
After completing 6 months of continuous employment, employees are entitled to a minimum of 21 days of paid vacation per year. Minors or employees with dangerous jobs may be entitled to more paid time off.
- January 1 New Year Holiday
- March 8 INT’L WOMEN’S DAY
- March 21-23 Nowruz Holiday
- April 9 Eid Al-Fitr
- May 9 Remembrance Day
- June 16-18 Eid al-Adha
- September 1 Independence Day
- October 1 Teacher’s Day
- December 8 Constitution Day
SICK DAYS
After returning to work, employees are required to submit a medical certificate for missing work days due to illness. Employees cannot be terminated by their employer while absent on sick leave and are entitled to receive sick leave compensation, which the employer must provide.
In cases of a labor-related injury or occupational disease or special qualification of the employee, the amount of sick leave compensation is 100% of the employee’s average earnings. In other cases, sick leave compensation ranges between 60% and 100% of such employees’ average earnings depending on the grounds for the sick leave and employment seniority.
MATERNITY LEAVE
An employee is entitled to up to 126 days of maternity leave. They are entitled to 70 days prior to giving birth and 56 days after the birth. Sometimes up to 70 days after birth is allowed for complicated or multiple births.
During maternity leave an employee is entitled to social security benefit of 100.00% of their regular salary.
PATERNITY LEAVE
There are no provisions in the law regarding paternity leave.
OTHER LEAVE
An employee is entitled to 56 days of paid leave following the adoption of a child. The entitlement increases to 70 days of paid leave if an employee adopts multiple children,
Termination
TERMINATION PROCESS
The termination process is set by the employment agreement and collective agreement which can also vary based on the type of contract and the reason for termination.
NOTICE PERIOD
Notice period depends on the reason for termination:
- Redundancy – 2 months’ notice
- Lack of qualification or health reason that impedes the employee’s ability to carry out their duties– 2 weeks’ notice
- Change in the company’s ownership – 2 months’ notice
- Gross misconduct or performance- 3 days’ notice
Payment in lieu of notice is permissible.
SEVERANCE PAY
The amount of severance pay depends on the length of service of the employee and varies from 50% to 200% of the employee’s average monthly salary.
PROBATION PERIOD
An employment contract generally includes a period of probation which cannot exceed three months.
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