Payroll and HR
Administration in Uzbekistan

Uzbekistan – Payroll and HR administration services

Global Expansion Plus provides payroll and HR administration services in Uzbekistan. Use our solutions to take care of your people in Uzbekistan. We make sure that your people are being taken care of, and your entity is safe from violating local legislation. The main law that governs the labor legislation in Uzbekistan is of the Republic of Uzbekistan, approved by the Law of the Republic of Uzbekistan dated 12.21.1995 and entered into force on April 1, 1996.

Hiring and onboarding employees in Uzbekistan

Companies can hire people over 16 years old. Hiring 15 years old requires the written consent of one of the parents. 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 Process

The Labor Code regulates the onboarding process in Uzbekistan. An employee needs to provide the following documents to an employer during the onboarding process:
  • a passport or any other ID identifying the person;
  • employment book, except for persons entering work for the first time;
  • military ID or registration certificate, respectively, for persons liable for military service;
  • a diploma of graduation from a higher or secondary specialized educational institution, a certificate of the right to perform this work, or another relevant document upon entry into work.
Employment starts with the signing of an internal order to hire a person. This order is provided to the employee as part of the onboarding process

Companies can sign a fixed-term and indefinite contract with an employee. The term contracts can be prolonged for up to 5 years. 

Probation Period

Uzbekistan, like many other post-soviet countries, protects the rights of an employee. The followings are the considerations for the trial period in Uzbekistan:
  • The trial period shall be stipulated in the individual labor agreement. Collective agreements do not provide this option;
  • A company cannot set a trial period for a fresh graduate; trail period is applicable only after three years of employment;
  • The trial period cannot exceed three months;
  • The trial period cannot be prolonged and preset before the start of employment;

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 Uzbekitstan

Visa Types

Under the legislation of the Republic of Uzbekistan, foreign citizens can enter Uzbekistan and transit through its territory only with entry visas.
Visas to foreign citizens and stateless persons are issued at diplomatic missions and consular offices of the Republic of Uzbekistan abroad based on visa support (confirmation of the Ministry of Foreign Affairs of the Republic of Uzbekistan).
The list of necessary documents for inviting foreigners by legal entities:
  • A visa application on the letterhead of the organization of the established form;
  • An electronic profile from the official site;
  • Copies of passports of the invited person. the head of the organization and the authorized person of the organization, for the submission of documents;
  • Copies of organization documents (license, certificate, certificates);
  • Copies of orders to the head and authorized person;
  • A copy of the power of attorney of the organization to the authorized person;
  • When applying for a visa upon arrival at the Tashkent Airport, you must also provide copies of airline tickets or reservations;
  • Certificate of employment of the invited person.
  • To apply for an investment visa;
There is 28 type of Visa to the Republic of Uzbekistan; we will list the most commonly used ones:
  • Visa Type D - Diplomatic visas. Visas provided to diplomatic missions of foreign states, missions of international organizations, and governmental organizations of foreign countries. Visa type D can be provided for a period of 1to 3 months.
  • Visa Type S – Services visas. Visas provided to executives of international organizations and companies to perform services on the territory of Uzbekistan. Visa type S can be provided for a period of 3 months to 1 year.
  • Visa Type B – Business visa. This Visa is issued for a period of up to 1 year to representatives of the business community visiting the Republic of Uzbekistan.
  • Visa Type T - Tourist entry visa. It is issued for a period of up to 1 month to foreign citizens visiting the Republic of Uzbekistan for tourist purposes.
  • Visa Type E - Work entry. Visa is based on a license from the Agency for External Labor Migration under the Ministry of Employment and Labor Relations of the Republic of Uzbekistan. Issued for the period of confirmation of the right to work issued to a foreign citizen by the Agency for External Labor Migration.
  • Visa Type PV - Guest entry. Visa is provided through the invitation of citizens of the Republic of Uzbekistan through the General Directorate of Migration and Citizenship of the Ministry of Internal Affairs of the Republic of Uzbekistan. It is issued for a period of up to 1 year to foreign citizens making guest trips at the invitation of citizens of the Republic of Uzbekistan.
  • Visa Type TRAN - Transit visa. It is issued for a period of up to 3 days to foreign citizens, following transit through the territory of the Republic of Uzbekistan. Application for Visa is submitted at the consulates and embassies of the Republic of Uzbekistan in a foreign country.

Work Permit

A company can only accept a foreign citizen if it has a work permit issued by the Agency for External Labor Migration under the Ministry of Employment and Labor Relations.
The permit gives the employer the right to employ foreign labor, and the work permit provides the foreigner with the right to work in Uzbekistan legally. The burden of obtaining these documents is on the employer. Following are the steps you need to take to get a work permit:
  • Step 1: Register on the Unified Portal Of Public Services or a special online site of the Ministry of Employment and Labor Relations to apply for work permit electronically;
  • Step 2. Fill out the application form in writing or electronically. The application is submitted along with the receipt of the paid application fee. If you submit electronically, you need to upload the scans of receipt.
  • Step 3: After receiving the confirmation about the Agency granting you the work permit, the company needs to pay 50 minimal wages as a government fee within five working days.
  • Step 4: Prepare and sign the labor agreement with the employee. The remunerations shall be stated in the agreement.
  • Step 5: Request the work permit with the documents needed to issue the work permit:
  • Step 6: After obtaining the work permit, the company pays 30 minimal wages;
  • Step 7: The foreign employee onboarding process.
Documents needed for application to Agency for External Labor Migration:
  • The application form from the applying individual;
  • A copy of the international travel passport;
  • Copy of entry visa.
  • 3 x 4 cm photo.
  • A draft employment contract with a foreign worker, indicating the number of wages (remuneration).
  • Certificate of absence of HIV issued by medical institutions of the Republic of Uzbekistan.
  • Documents confirming the qualification of a foreign citizen.
  • Brief information about the employer;
  • Copy of the employer's passport;

Working hours and leaves in Uzbekistan

Working hours and overtime

The regular working hours for an employee may not exceed forty hours per week. With a six-day workweek, the duration of daily work may not exceed seven hours, and with a five-day workweek, eight hours.
Overtime is considered to work above the employee’s daily work (shift) duration. Overtime work may be applied with the consent of the employee. In case of work with particularly dangerous and particularly harmful working conditions, overtime is not allowed. Work shift of twelve hours is also prohibited.

Vacation leave

All employees are granted annual labor leave to rest and restore working capacity while maintaining their place of work (position) and average earnings.
Annual basic leave is granted to employees with a duration of at least fifteen working days. The annual basic vacation leave is extended based on age and state of health:
  • persons under the age of eighteen - thirty calendar days;
  • working people with disability of I and II groups - thirty calendar days;

Sick leave

The Social Security Fund reimburses sick leave. The sick leave compensation is made based on the sickness list provided by the medical institution.
The amount of sick leave is calculated based on the employee background and work experience, calculated by the period during the contribution to the Social Security fund that was made by the employee.
Employees with chronic sickness:
  • 60% of monthly average salary with work experience under five years;
  • 80% of monthly average salary with work experience es between 5 and 8 years;
  • 100% of monthly average salary with work experience over eight years;
Other employees:
  • 80% of monthly average salary over eight years, orphans and age below 21 years;
  • 60% of monthly average salary;

Maternity and paternity leave

According to the Labor Code, maternity leave is given to a working woman lasting 70 calendar days before childbirth and 56 (for complicated births or the birth of two or more children – 70) days after them. Only 126 days, or a little more than four months. The basis for maternity leave for an employee is a reference issued to a pregnant woman by an appropriate medical institution (usually a family clinic).
At the end of the period of pregnancy and a period after childbirth, an employee can go on parental leave until he reaches the age of two years with a payment of benefits for this period, and after it on additional leave without saving childcare pay before three years.

Uzbekistani Holidays in 2020

  • 01 January 2020 - New Year
  • 14 January 2020 - Day of Defenders of the Motherland
  • 08 March 2020 - International Women's day
  • 21 March 2020 - Navryz
  • 09 May 2020 - Memorial Day
  • 24 May 2020 - Ramadan Ait
  • 01 June 2020 - Children's Day
  • 31 July 2020 - Kurban Kit
  • 03 September 2020 - Independence Kit
  • 01 October 2020 - Teacher's Day
  • 8 December 2020 - Day of Constitution

Remuneration & Benefits in Uzbekistan

The minimum monthly wage starting February the minimum wage is UZS 679,330 (USD 67.19). The basic estimated value equals to UZS 223,000 (USD 22.06). This amount is used in determining the number of tax payments, fees, fines, state duties, payments for provided public services, and a patent (license) for a particular type of entrepreneurial activity and other payments established by legislative acts.

Employee termination and severance in Uzbekistan

An employee cannot be fired at the request of the employer. The employer need reasons, and only those that are allowed by law. The fact of warning his signature confirms the employee on the second copy of the notice that the employer retains. The first copy is handed to the employee. The authorized executive director signs the order to terminate the employment contract.

Notice period

The notice period is one month.

Severance payment

An employee is entitled to 2months of compensation after the notification.

Payroll related taxes in Uzbekistan

Employee taxes

Employees are paying Personal Income Tax of 20 %.

Employer taxes

The rate of social security contributions for 2020 is 12%.
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