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:
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:

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:
There is 28 type of Visa to the Republic of Uzbekistan; we will list the most commonly used ones:

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:
Documents needed for application to Agency for External Labor Migration:

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:

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:
Other employees:

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

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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