Payroll and HR
Administration in Kyrgyzstan

Kyrgyzstan – Payroll and HR administration services

Global Expansion Plus provides payroll and HR administration services in Kyrgyzstan. Use our solutions to take care of your people in Kyrgyzstan. 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 Kyrgyzstani labor relationship.

Hiring and onboarding employees in Kyrgyzstan

The onboarding of employment can be led by employee appointments to the position, casting, or even physical and mental health examination. If an employee that you are targeting for employment is a foreign citizen, you need to consider obtaining a work permit.

Onboarding Process

Onboarding in Kyrgyzstan consists of the following steps:
Step 1: An employee is presenting the following documents:
  • passport or another identification document;
  • a workbook, except for cases when the labor contract is concluded for the first time or the employee goes to work on a part-time basis;
  • military registration documents - for persons liable for military service and persons subject to conscription;
  • a record on education and (or) on qualifications or the availability of special knowledge (when applying for a job requiring special knowledge or special training);
  • a certificate on the presence (absence) of a criminal record.
Step2: Induction to internal policies and practices. Before signing the labor contract, the employer is obliged to provide the employee with the internal labor regulations, other internal regulations directly related to the employee’s labor activities. The job description, as a rule, is also the internal regulatory act of the employer (sometimes, it is an annex to the employment contract).
Step 3: Signing of a labor agreement with an employee. An employment contract is concluded in writing in two copies, each of which is signed by the parties. An agreement on a material liability is not obligatory but highly advised.
Step 4: Issuing an order on hiring an employee. An order for hiring an employee is issued based on a labor contract, and its content must strictly comply with it.
Step 5: Filling the record of employment in the workbook. The employer maintains workbooks for each employee. If the employee does not have a workbook, then the employer must prepare one.
Step 6: Preparation of the labor folder.

Probation Period

An employer may set a probationary period to verify the employee’s compliance with the work requirements. The trial period is specified in the employment contract. If such conditions are absent, then it is considered that the employee is accepted without trial. It should be noted that:
  • the trial period shall not exceed three months, and
  • for certain categories of persons (managers and their deputies, chief accountants, and their deputies) - 6 months.
The employer has the right to end the employment contract if the employee did not pass the trial period. In this case, the employer shall notify the employee in writing for three days, stating the reasons. An employee is considered having passed the test in case the trial period has expired, and the employment contract has not been terminated.

Health and Safety

Companies 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 Kyrgyzstan

Visa Types

The legislation establishes various categories of visas. Depending on the purpose of the stay of foreigners in the Kyrgyz. Below are types of Visas to the Republic of Kyrgyzstan:
  • A diplomatic visa (type "D") - The holder of a diplomatic passport, entering the Kyrgyz Republic on an official visit.
  • An official visa (type "O") – This visa is issued for an official passport entering the Kyrgyz Republic on an official visit.
  • An investment visa (type "I") is issued to the investor or the head of a foreign investment company, and members of his family engaged in investment activities in the Kyrgyz Republic. Visa holders have to certify a contribution to the economy of the Kyrgyz Republic of its monetary equivalent to the amount of KGS 10 million, - multiple entry visa for up to 3 years.
  • A work visa (type "W1") is issued to the applicant to obtain a work permit in the Kyrgyz Republic. This visa provides the applicant with the right to enter the territory of the Kyrgyz Republic for up to 90 days.
  • A student visa (type "S") is issued to an applicant entering the Kyrgyz Republic for education purposes for up to 90 days.
  • Business visa (type "B") – This type of visa is issued to the applicant entering the Kyrgyz Republic for business purposes, to participate in negotiations, conferences and meetings, sports events organized by state and local authorities, international organizations and legal entities, for up to 90 days.
  • A private visa (type "P1") is for visiting relatives and friends, receiving medical services for up to 90 days. The inviting party or the applicant himself undertakes to cover all expenses for staying in the Kyrgyz Republic, including the costs of possible treatment and deportation from the Kyrgyz Republic;
  • A tourist visa (type "TS") is issued to an applicant intending to visit the Kyrgyz Republic for tourism purposes for up to 90 days.
  • A transit visa (type "TR") is issued to the applicant following transit through the territory of the Kyrgyz Republic to third countries for a period of validity up to 5 days.

Work Permit

Work permit for employment by a Kyrgyz company

Following is steps to be taken to obtain the work permit by the employer in Kyrgyzstan:
  • Step 1: To apply in person or through your authorized representative;
  • Step 2: Registration of the application, issuance of a receipt on the reception of the documents;
  • Step 3: Hearing of the independent commission to consider applications to obtain a quota for attracting foreign labor;
  • Step 4: Pay the state fee;
  • Step 5: Obtain permission to attract foreign labor;
The application and review provided by the Migration Service are free of charge.

Work permit for employment by a Kyrgyz company

  • Step 1: Foreign entrepreneur prepays the patent issued by the Tac Office.
  • Step 2: Application of the Agency of the Migraion;
  • Step 3: Payment of the fee of the Agency of Migration;
  • Step 4: Obtian the work permit;

Working hours and leaves in Kyrgyzstan

Working hours and overtime

The working hours, among other things, includes the length of the working day, the time of the beginning and end of work and breaks. Regular working hours are 40 hours per week, except for several cases.
Besides, by agreement of the employer and employee, a shorter working hour may be established, which is indicated in the employment contract. The duration of daily work cannot be more than 7 hours with a six-day working week with a weekly rate of 40 hours.
The duration of work on the eve of a non-working holiday for an employee working in regular working hours is reduced by 1 hour. If an employee has already been assigned a shorter working day, the working day is not reduced. Employees, whose work hours cannot be interrupted, and it is not possible to reduce the duration of work, extra rest time is provided, with the consent of the employee, it also can be reimbursed. Also, it should be noted that, by agreement between the employer and the employee, a flexible working schedule may be established.
An employer may request overtime work with the written consent of the employee and only based on an internal order. In this case, the employee is paid extra. Overtime work should not exceed 4 hours for two consecutive days. Also, potential employees under the age of 18 are not allowed to work overtime. It should be noted that overtime cannot exceed 4 hours per day and 20 hours per week.
For overtime work, the employee receives an increased payment, which for the first 2 hours of work is at least one and a half of regular pay, while for the next hours – at least double standard payment.

Vacation leave

An employee is granted an annual minimum paid vacation of 28 calendar days. Moreover, the employee has the right to take leave after 11 months of uninterrupted work for its first year. The following employees may be granted leave before the expiration of the eleven months:
  • women before or after maternity leave;
  • employees under 18 years old;
  • workers who have adopted a child up to 3 months;
  • part-time workers, if labor leave at the principal place of work falls on a period of up to 11 months part-time work;

Sick leave

The payment of temporary disability benefits (or sick leave )is made for all working days at the expense of the employer’s funds in the following order. Compensation for the first ten working days are paid in the amount of:
  • 60% of the average wage - to employees with a total work experience of up to 5 years;
  • 80 % of the average salary - to employees with an entire work experience of 5 to 8 years;
  • 100 % of the average wage - to employees with a total work experience of 8 years or more.
In exceptional circumstances, 100% of the average wage is paid. From the eleventh working day – at the rate of 50 of the salary index per month is applied.

Maternity and paternity leave

The employer must provide maternity leave at the request of the woman based on a medical record. The duration of such leave is 70 calendar days before childbirth and 56 after delivery. In some cases established by labor legislation, the period of maternity leave is established from 140 to 180 calendar days.
The employer shall provide additional unpaid leave for childcare up to three years. During the period of maternity leave, childcare, the employer is not entitled to dismiss the employee, except for cases established by labor legislation of the Kyrgyz Republic. During this leave, the employee retains his/ her workplace.

Holidays Kyrgyzstan in 2020

  • 01 January 2020 - New Year
  • 07 January 2020 - Christmas Day
  • 23-24 February 2020 - Fatherland Defender's Day
  • 08-09 March 2020 - Women's Day
  • 21 March 2020 - Nooruz
  • 07 April 2020 - Day of the People's April Revolution
  • 01 May 2020 - International Labor Day
  • 05 May 2020 - Constitution Day
  • 09-11 May 2020 - Victory Day
  • 24 May 2020 - Orozo Kit
  • 31 July 2020 - Kurman Kit
  • 31 August 2020 - Independence Day
  • 07-08 November 2020 - Day of History and Commiseration of Ancestors

Remuneration & Benefits in Kyrgyzstan

In the year 2020, the minimum wage is projected at KGS 1,854. Kyrgyzstani legislation also contains a settlement indicator – a normative monetary indicator for determining the number of social payments, compensations, economic sanctions, administrative penalties, and fines.

Employee termination and severance in Kyrgyzstan

Based on the Labor Code, an employer may terminate a labor agreement only in a limited number of cases, including, but not limited to:
  • staff redundancy;
  • the employee's systematic failure to fulfill his or her employment duties;
  • the employee's insufficient qualifications or deteriorating health condition;
  • the employee's absence from the workplace for more than three consecutive hours during one working day;
  • and certain others;
The final dismissal payment to an employee is made on the last day of his employment, and an employee must sign certain resignation HR papers.

Notice period

The notice period is two months. The notice letter shall contain the base for termination.

Severance payment

Severance payment usually consists of the following payment:
  • Compensation for unused vacation days
  • Two months' salary (based on the notice period)
  • Minimum of two months' compensation

Payroll related taxes in Kyrgyzstan

Employee taxes

An employee is paying personal income tax at the rate of 10%. Employees are paying Personal Income Tax of 10 %. The salary under KGS 650 is exempt. The 10% of personal income tax is applied after deducting social security payment and KGS 650 of exemption. There are two social security payments:
  • 8% of pension funds;
  • 2% of state saving pension fund;

Employer taxes

There are three types of Social Security payment:
  • 15% of the pension fund;
  • 2% of mandatory medical insurance;
  • 0,25% of the fund for rest for workers
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