Payroll and HR
Administration in Turkmenistan

Turkmenistan – Payroll and HR administration services

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

Hiring and onboarding employees in Turkmenistan

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

The start of employment shall be formalized by an internal order of the employer issued based on the official request of the person entering the work. The employer issues the internal order following the singing of an employment contract between parties under the Labor Code. The internal order shall be announced to the employee on receipt within three days.
During the onboarding process, the employer must:
  • to familiarize the employee with the assigned work under the job description, conditions and remuneration, explain his rights and obligations;
  • to introduce the employee with collective agreements (agreements) and documents regulating the internal work schedule;
  • instruct the employee on safety measures, occupational health, fire safety, and other labor protection requirements.

Probation Period

A trial period may be established upon the conclusion of an employment contract. The trial period should not exceed three months, and for managers and executives – six months.
The period of temporary disability of the employee and other periods of his actual absence from work shall not be included in the trial period.
The condition for the trial period should be indicated in the job description. The absence of a trial period in the internal order means that the employee was accepted without a probation period.

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 Turkmenistan

Visa Types

There are following Visas available to visit Turkmenistan:
  • Personal visa;
  • Student visa;
  • Tourist visa;
  • Transit visa;
  • Health visa;
  • Driver's visa;
  • Exit visa;
Invitations for issuing visas are given with 3 months term by State migration Agency of Turkmenistan. It is essential to hand in the stated application forms and additional documentation to the offices of State Migration Agency of Turkmenistan before the finish of working visas to extend ordinary visas, but two months before the end of visas on an employment basis. Accepted decisions of the Board Team on extending the visas must be carried out during the 45 days. A foreigner must leave the country as soon as his visa expires.

Work Permit

Conditions and procedure for issuing work permits in Turkmenistan:
  • Decisions on issuing permits for inviting foreign citizens to work temporarily in Turkmenistan and extending their validity are made based on an examination of the documents within 30 days from the date of their filling by the employer.
  • If the decision to issue a permit requires the receipt of additional information or verification, the decision is made within 15 days from the receipt of additional information.
  • An employer is charged a fee of $ 25 for each month of work of a foreign citizen in Turkmenistan for attracting foreign citizens to work in Turkmenistan temporarily.
  • The decision to refuse to issue a permit to invite foreign citizens to temporary work in writing is sent to the employer within five days.
  • Re-submission of documents is carried out no earlier than six months after the date of the decision to reject to issue a permit to invite foreign citizens to work in Turkmenistan.
  • A permit is issued for a period of up to one year.

Working hours and leaves in Turkmenistan

Working hours and overtime

The standard workday in Turkmenistan is 8 hours, and the standard workweek is five days/40 hours. For some category of workers, the work hours are shorter, for example, employees under the age of 18 years old, pregnant women, and people with disabilities.
The minimum age for employment is 16 years old. In some industries, it starts at 18 years old. The labor law established that 16-18-year-olds should not work over 6 hours a day.
Overtime, typically, is not allowed. However, overtime works may be requested by the employer only in extraordinary cases provided by the legislation. The duration of overtime work should not exceed 4 hours during two consecutive days and 120 hours during the year. Overtime is compensated at 200% of a standard rate.

Vacation leave

The paid annual vacation leave is 30 calendar days and must be provided to all employees. For the following categories of employees, duration of annual vacation should be at minimum 45 calendar days:
  • School teachers and officials of all types of educational institutions and kinder garden;
  • People with disabilities.
Certain categories of employees, especially the ones working in hazardous conditions, offshore workers shall be entitled to additional vacation days up to 15 days.

Sick leave

Sick leave compensation is granted according to the documents that confirm temporary disability. The records are obtained from the medical institutions of Turkmenistan.
The disability compensation is calculated as a percentage of the amount, obtained by multiplying the average daily earnings by the number of days temporary disability to work:
  • 60 % - with a work experience of up to 5 years;
  • 80 % - with work experience from 5 to 8 years;
  • 100 % - with a work experience of 8 years and more.
There is no recovery from government funds.

Maternity and paternity leave

Maternity leave is provided for at least 112 calendar days and consists of leave before childbirth and after childbirth for 56 calendar days each. In preterm birth, the established duration of leave before delivery does not change.
In the case of complicated births, postpartum leave is extended by 16 calendar days, and when two or more children are born, by 40 calendar days.
A person who has adopted a child (children) shall be granted maternity leave from the date of adoption until the expiration of 56 calendar days from the child’s birth. Maternity leave is also granted to pregnant women with premature birth or miscarriage after 154 days of pregnancy.

Holidays Turkmenistan in 2020

  • 01 January 2020 - New Year
  • 12 January 2020 - Memorial Day
  • 08 March 2020 - International Women's Day
  • 21-22 March 2020 - Novruz-Bayram
  • 18 March 2020 - Constitution and Flag Day
  • 24 May 2020 - Khait
  • 31 July 2020 - Kurban Bairam
  • 27 September 2020 - Independence Day
  • 06 October 2020 - Earthquake Memorial Day
  • 12 December 2020 - Neutrality Day

Remuneration & Benefits in Turkmenistan

The minimum wage in the Republic of Turkmenistan will be equal to TMT 870 (USD 250). The basic value for determining the minimum pensions is up to TMT 338 (USD 96). The basic value for determining state benefits is up to TMT 322 (USD 92).

Employee termination and severance in Turkmenistan

There are reasons to terminate employment. Some of them are on an employee, employer decision, or on a mutual agreement. If the termination is held by the employee or on a mutual agreement, the process is quite straight forward and simplistic. The only rule is that employee needs to inform the employer in the two weeks.
When termination happens on the decision of the employer should be according to the reasons specified in the labor code. If not, an employer can meet legal action against its decision.

Notice period

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

Severance payment

Severance payment of two months’ salary is paid if the reason for the termination is two months.

Payroll related taxes in Turkmenistan

Employee taxes

An employee is paying personal income tax from his/her gross salary in the amount of 10% with TMT 50 of the untaxed amount. The social payments consist of the State Savings Fund of TMT 2 and the Voluntary Pension Insurance Fund of 2% Exteriors are paying only 10% of income tax.

Employer taxes

An employer is paying 20% of social security contribution to the gross salary. No social security is paid on the ex-pats working in Turkmenistan.

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