Payroll and HR
Administration in Kazakhstan
Kazakhstan – Payroll and HR administration services
Global Expansion Plus provides payroll and HR administration services in Kazakhstan. Use our solutions to take care of your people in Kazakhstan. We make sure that your people are being taken care of, and your entity is safe from violating local legislation. The Labor Code governs the Kazakhstani labor relationship.
Hiring and onboarding employees in Kazakhstan
If you are hiring a foreign employee, you need to consider obtaining the work permit first. Please see below. Once you agreed on the job offer with your future employee, you need to start the onboarding process.
Onboarding ProcessThe Labor Code regulates the onboarding process in Kazakhstan. First company officials receive a confirmation on accepting the job offer of the following steps:
According to Kazakhstani, labor legislation companies can have a collective and individual labor agreement. If an employee will have property accountability, it is required to have a personal labor agreement.
Contracts can be indefinite or fix term contracts. Fix term contracts cannot be less than one year. Prolongation can happen only twice. After then, contracts will be treated as indefinite.
Probation PeriodThe trial period is only applied if stipulated in the labor agreement. If there is no closure on a trial period, it is considered to be equal to zero. The length of the probation period is three months.
Health and SafetyCompanies can request medical check-ups from an employee. The employer cannot receive the criminal records or credit records from third party sources, only from an employee or by its written consent.
Work permits and Visas in Kazakhstan
Visa TypesThe legislation establishes various categories of visas. Depending on the purpose of the stay of foreigners in the Republic of Kazakhstan. It is necessary to indicate the grounds that correspond to the purpose of the stay. Below are types of Visas to the Republic of Kazakhstan:
Application for Visa is submitted at the consulates and embassies of the Republic of Kazakhstan in a foreign country.
Work PermitThe work permit is obtained in three steps: registration at the place of living in Kazakhstan, receiving personal tax number of preparations of the required documents.
To apply for a work permit in Kazakhstan, a foreign citizen needs to prepare the following documents:
To prepay the personal income tax, the foreign citizen also receives an individual tax number.
Working hours and leaves in Kazakhstan
Working hours and overtimeKazakhstani labor code specifies that workweek consists of 40 hours, five days per week. Working hours start at 9 am and ends at 6 pm. Any workhour over this time frame is considered overtime. Overtime cannot exceed 2 hours per day, 12 hours per month, and 120 hours per year. Overtime is paid at a double rate.
Vacation leaveThe paid vacation leave is of 24 calendar days. A larger number of days may be granted in the Labor Code of the Republic of Kazakhstan for certain categories of workers, as well as in the employment agreement.
Additional paid labor holidays of at least six calendar days are provided to workers engaged in hard work, work with harmful and (or) dangerous working conditions, and disabled people of the first and second groups.
Paid leave is provided at any time of the working year. By agreement of the parties, a vacation can be divided into parts. In this case, one of the components must be at least 14 calendar days.
Payment of vacation pay should be made no later than three business days before it begins, and in the case of labor leave outside the vacation schedule – no later than three business days from the date of its grant.
Sick leaveSick leave to employees of social benefits for temporary disability is regulated by the Labor Code of the Republic of Kazakhstan. The employer must pay temporary disability payment at his own expense.
The basis for the payment of sick leave is disability certificates issued by a medical center. In case of loss of sick leave, a duplicate could be issued.
The amount of the compensation is determined by multiplying its average daily earnings by the number of days of disability indicated on the sick leave. The average daily (hourly) salary are determined by dividing the amount of accrued wages by the number of working days (hours).
Maternity and paternity leaveMaternity leave is provided for 126 calendar days (70 days before childbirth and 56 days after delivery), with complicated or at the birth of 2 or more children, it is extended by 14 days. In regions affected by nuclear testing, maternity leave is 170 days with normal childbirth and 184 days with complicated or more than one birth.
Childcare leave lasts until the child is three years old. At the same time, one of the parents can take parental leave by mutual agreement.
Kazakhstani Holidays in 2020
Remuneration & Benefits in Kazakhstan
The minimum monthly wage is on January 1 following the Law of the Republic of Kazakhstan on State Budget for the financial year 2020. As of January 1, 2020, the minimum wage is KZT 42,500 (USD 102).
Employee termination and severance in Kazakhstan
There are 25 reasons to terminate an employment agreement by the employer. However, almost all reasons because of the malfunctioning of the employee. One of the neutral reason to terminate the employment is restructuring r liquidation the company.
Notice periodThe notice period is one month.
Severance paymentAn employer should provide a severance payment in the amount of the average weekly payment for every worked year, and the payment shall not be less than two average monthly salaries.
Payroll related taxes in Kazakhstan
Employee taxesEmployees are paying Personal Income Tax of 10 %. This tax is capped at 50 minimal wages. No personal income tax is calculated over that amount. Social security contribution is equal to 1% in 2020 and 2% in 2021.
Employer taxesThe rate of social security contributions for 2020 is 9.5%, social tax 3.5%.
The pension fund contribution is capped at five average salaries. For average salary see above