Guide to employment, payroll and benefits in

Kazakhstan

Rivermate offers complete payroll, benefits and compliance services for

Kazakhstan

01. Overview

Last updated: 

August 19, 2021

Currency
Kazakhstani Tenge
Capital
Astana
Ease of doing business
79.6
Language
Russian
Population
18776707
GDP growth
4.10%

02. Grow your team in

Kazakhstan

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Kazakhstan

, particularly if you don't have established local relationships. You can hire employees in

Kazakhstan

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Kazakhstan, formally the Republic of Kazakhstan, is a transcontinental country with much of its territory in Central Asia and a small part in Eastern Europe west of the Ural River. It has a land area of 2,724,900 square kilometers and borders Russia to the north, China to the east, Kyrgyzstan, Uzbekistan, and Turkmenistan to the south, as well as a wide portion of the Caspian Sea to the southwest. Kazakhstan does not share a border with Mongolia, despite the fact that they are just 37 kilometers apart and are separated by a small section of the Russian-Chinese border. Kazakhstan is the ninth-largest country in the world and the world's largest landlocked country. With a population of 18.8 million people and a population density of less than 6 people per square kilometer, it is one of the world's most densely populated countries. Nur-Sultan, formerly known as Astana, has been the capital since 1997. Almaty, the country's largest city, was relocated. Nomadic tribes and empires have inhabited Kazakhstan's territories in the past. The nomadic Scythians populated the land in antiquity, and the Persian Achaemenid Empire spread into the modern country's southern territories. Turkic nomads have populated the country throughout its history, tracing their ancestors to many Turkic states such as the First and Second Turkic Khaganates. The Mongol Empire, led by Genghis Khan, conquered the region in the 13th century. The Kazakhs arose as a distinct ethnic group in the 16th century, divided into three jüz. In the 18th century, the Russians started to advance into the Kazakh steppe, and by the mid-nineteenth century, they had nominally controlled all of Kazakhstan as part of the Russian Empire. Kazakhstan's territory was reorganized several times after the 1917 Russian Revolution and ensuing civil war. It became the Kazakh Soviet Socialist Republic, a member of the Soviet Union, in 1936. During the breakup of the Soviet Union in 1991, Kazakhstan was the last of the Soviet republics to declare independence. Human rights organizations have characterized Kazakhstan's government as authoritarian, and the country's human rights situation is frequently described as weak. Kazakhstan is the most economically powerful country in Central Asia, accounting for 60% of the region's GDP thanks to its oil and gas industry. It also has a rich cultural heritage and is a democratic, secular, unitary, federal republic with vast mineral resources. Kazakhstan is a member of the United Nations, the World Trade Organization, the Commonwealth of Independent States, the Shanghai Cooperation Organization, the Eurasian Economic Union, CSTO, OSCE, OIC, CCTS, the Turkic Council, and TURKSOY.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to 24 days of paid vacation each year.

Public holidays

Kazakhstan recognizes twelve public holidays.

Sick days

Maternity leave

Mothers are entitled to 126 days of maternity leave, which is split into 70 days prior to the planned due date and 56 days after the infant is born. During a stressful birth, leave will be prolonged for a further 14 days.If a mother lives in an environment where nuclear tests are conducted, maternity leave is split into 90 days before and 70 days after the scheduled due date.Maternity leave is shouldered by the employer.

Paternity leave

There are no legal protections in place for paternity leave.

Parental leave

When the child hits the age of three, parents or friends are entitled to unpaid leave to care for the child.

Other leave

Up to 5 calendar days of unpaid leave for: Marriage Birth of a child Death of a relative

06. Employment termination

Termination process

An employer must send written notification to the employee that the employment arrangement has been terminated.


Employers must provide a termination letter on the last day of work that includes the cause for termination.


Employers must produce an employment certificate upon request that includes information on the employee's dates of work, the nature of the job, the salary, and a recommendation. This letter must be provided within five business days of the request date.

Notice period

One month's notice is required. Payment in lieu of notice might be offered if the employee agrees.

Severance pay

There are no provisions in the law regarding severance pay.

Probation period

Probationary periods in Kazakhstan usually last three months.

07. Working hours

General

The standard workweek is 40 hours long. Five-day workweeks are the norm, but a business may opt for a six-day workweek if it better suits its needs. Businesses engaged in creative or athletic endeavors have some latitude in establishing their own schedules.


Between the ages of 14 and 16, employees are not permitted to work more than 24 hours per week. Individuals between the ages of 16 and 18 are limited to 36 hours per week. Additionally, employees who perform exceptionally difficult or hazardous jobs are limited to 36 hours per week. Additionally, employees under the age of 18 and pregnant women who have provided the employer with a medical certificate of pregnancy are not permitted to work between the hours of 10 p.m. and 6 a.m.


Mothers of children under the age of seven, individuals raising children under the age of seven without the child's mother, and individuals caring for a disabled child under the age of sixteen may work only between the hours of 10:00 p.m. and 6:00 a.m. with written consent. Disabled individuals may work during these hours only with written consent and are not otherwise prohibited by a physician. Employees who work at night must be compensated at a rate that is at least 150 percent of their standard hourly or daily rate, with the specific night rate typically determined by contract.

Overtime

In general, the employee and employer must agree in writing on overtime work. Overtime cannot exceed two hours per day for non-hazardous work and one hour for hazardous work. Additionally, overtime hours cannot exceed 12 per month. Overtime is compensated at 150 percent of the regular rate of pay. Additionally, 1 hour of unpaid leave can be granted for every hour of overtime.

08. Minimum wage

General

The monthly minimum wage in Kazakhstan is 42,500.00 KZT.

09. Employee benefits

General

Kazakhstan has progressed toward a single-payer, universal health-care system that is partially funded by the government and partially funded by employers and employees.

Employers must contribute 2% of payroll beginning in 2020. Employees will also be required to contribute 2% of their earnings beginning in 2021.

Housing allowances, transportation allowances, company cars, and education allowances are some of the most common employee benefits in Kazakhstan.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Kazakhstan

to hire a team takes time, money, and effort. The labor law in

Kazakhstan

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Kazakhstan

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Kazakhstan

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Kazakhstan

via our Employer of Record / PEO solution.

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