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Kazakhstan Payroll and Benefits Guide

Kazakhstan Payroll and Benefits Guide

Do you have hiring ambitions in Central Asia? Have you thought about hiring in Kazakhstan? It’s an underutilized and underestimated talent market, especially for tech. TRUSS can help you hire there, but first, check out our Kazakhstan payroll and benefits guide.

Kazakhstan Payroll Breakdown

In Kazakhstan, there are a few categories of employer contributions. There is a 3.5% contribution for Social Insurance (capped at 3.5% of 7 times the monthly minimum wage),  9.5% Social Tax, and 3% Medical Insurance (not to exceed ten times the monthly minimum wage). This amounts to 16% total for most employers. However, those with employees working in harmful conditions need to add another 5% to their contributions for an Obligatory Professional Pension (OPPC).

Employee contributions are a little more simple with 2% for health insurance (not to exceed ten times the monthly minimum wage) and 10% for pension (capped at 50 times the monthly minimum wage). Employees are also subject to a 10% flat income tax rate. The national minimum wage for Kazakhstan is set at 70,000.00 KZT.

Working Hours and Overtime in Kazakhstan

In Kazakhstan, a full-time work week is 40 hours just like in the U.S. Overtime is to be paid at 150% of the regular hourly pay. Overtime cannot exceed 2 hours per day, which is reduced to 1 hour for dangerous work. Overtime is also capped at 12 hours per month.

Read More: Kazakhstan Overtime Pay Guide

Kazakhstan Benefits Breakdown

Benefits vary from country to country, from time off to how termination is handled, you will want to be able to navigate these laws to ensure you stay in compliance. Don’t forget, Central Asia and Kazakhstan specifically have their own local public holidays as well that you will want to keep track of.

Time Off and Vacation in Kazakhstan

Skyline in Kazakhstan City with Central Tower Sculpture

Every employee is entitled to a minimum of 24 days of paid vacation excluding official holidays. Mothers are given 70 days of leave before their expected due date, and 56 days after. That latter number is increased to 70 for multiple births or a difficult birth. For mothers who reside in areas where nuclear tests were performed, maternity leave is increased to 90 days before and 70 days after. Maternity leave is paid by the employer at 100% of the regular salary. There is no paternity leave but employees are entitled to request unpaid childcare leave for children under the age of three.

How Termination is Handled in Kazakhstan?

There are three reasons employers are allowed to give for termination in Kazakhstan: business, personal, or misconduct. For misconduct, a written warning is required. The statutory notice period is one month though payment in lieu of notice can be provided if the employee agrees. Kazakhstan also recognizes a 3-month probation period.

Hire in Kazakhstan with TRUSS

Does all this sound wonderful to you but you just want a way to be able to hire in Kazakhstan? That’s where TRUSS comes into play. We have a recruiting team that’s local to Central Asia and with our employer of record service, we can start hiring for you immediately. We have an entity in place and we will handle all your payroll and compliance. Reach out today!

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