Guide to employment, payroll and benefits in

Kyrgyzstan

Rivermate offers complete payroll, benefits and compliance services for

Kyrgyzstan

01. Overview

Last updated: 

August 19, 2021

Currency
Kyrgyzstani Som
Capital
Bishkek
Ease of doing business
Language
Russian
Population
6524195
GDP growth
4.58%

02. Grow your team in

Kyrgyzstan

with Rivermate

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

Kyrgyzstan

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

Kyrgyzstan

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

Kyrgyzstan, formally the Kyrgyz Republic, is a landlocked country in Central Asia. It is also known as Kirghizia. Kazakhstan, Uzbekistan, Tajikistan, and China are its neighbors. Bishkek is the country's capital and largest city. The history of Kyrgyzstan covers many civilizations and empires. Kyrgyzstan has been at the crossroads of many great civilizations as part of the Silk Road and other trade routes, despite its geographical isolation due to its extremely mountainous terrain. Kyrgyzstan has been ruled by a succession of tribes and clans, and has occasionally fallen under greater dominance. It was governed by the Göktürks, the Uyghur Empire, and the Khitan people between periods of self-government before being conquered by the Mongols in the 13th century; it regained independence but was overrun by Kalmyks, Manchus, and Uzbeks. It became a part of the Russian Empire in 1876, and after the Russian Revolution, it was absorbed into the USSR as the Kirghiz Soviet Socialist Republic. Askar Akayev, a pro-independence candidate, was elected president in 1990 following Mikhail Gorbachev's democratic reforms in the USSR. Kyrgyzstan declared independence from Moscow on August 31, 1991, and a democratic government was formed. Following the dissolution of the Soviet Union in 1991, Kyrgyzstan became a sovereign state. Kyrgyzstan has been a unitary parliamentary republic since independence, despite continuing ethnic tensions, revolts, economic difficulties, transitional regimes, and political strife. Ethnic Kyrgyz make up the majority of the country's six million population, with large minorities of Uzbeks and Russians. Although Russian is still spoken and is an official language, Kyrgyz is closely related to other Turkic languages, owing to a century of Russification. 90% of the population is Muslim, with Sunnis constituting the rest. Kyrgyz culture is influenced by Iran, Mongolia, and Russia, in addition to its Turkic roots. The Commonwealth of Independent States, the Eurasian Economic Union, the Collective Security Treaty Organization, the Shanghai Cooperation Organization, the Organization of Islamic Cooperation, the Turkic Council, the Türksoy group, and the United Nations are all members of Kyrgyzstan. It is a developing nation that ranks 120th in the Human Development Index and is Central Asia's poorest country. Oil and natural gas, as well as gold, coal, and uranium reserves, are vital to the country's transition economy.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to 28 days of paid vacation per year.

Public holidays

There are many holidaysNew Year’s DayOrthodox ChristmasDefender of the Fatherland DayInternational Women’s DayNowruzDay of the People’s April RevolutionLabor DayConstitution DayVictory DayOrozo AitIndependence DayKurban AitDays of History and Commemoration of Ancestors

Sick days

Employers are not required to provide paid sick leave, but most do offer some time off in the event of illness.

Maternity leave

A pregnant female employee has the right to take up to 70 days of leave before and after the birth of her child. The mother is entitled to 70 days of leave after the birth of her child if the birth is complicated or if she has more than one child at the same time.In some remote or mountainous areas, female workers are entitled to additional maternity leave.The child's father or any other relative who will be caring for the child may take part or all of this leave. Unpaid time off may be taken until the child reaches the age of three.Employers pay employees 100 percent of their wages for the first ten working days of maternity leave. The government pays a benefit to the employee on leave starting on the 11th day and continuing until the end of the leave.Female employees may not be denied employment or terminated because they are pregnant, and women who have young children at home may not be fired except in rare cases of misconduct.

Paternity leave

There are currently no laws or regulations in Kyrgyzstan regarding paternity leave.

Parental leave

Other than the already mentioned terms for maternity leave in Kyrgyzstan, there are no other provisions in the law regarding parental leave.

Other leave

06. Employment termination

Termination process

An employment contract may be terminated in one or more of the following circumstances: the parties agree to terminate the contract; the contract is for a fixed term and the term has expired; either the employer or the employee chooses to terminate the contract; the employee transfers to a new job with a different employer, either at the employee's request or with the employer's agreement; and circumstances beyond the parties' control.


Additionally, an employee may cancel an employment contract with two weeks' written notice, and if an employer refuses to terminate a fixed-term employment contract at the employee's request, the employee may seek a judicial settlement.


There are numerous reasons for an employer to terminate an employee's employment contract. These include downsizing or layoffs, a change in the organization's ownership, an employee's lack of skills, and other sorts of major employee misconduct, such as absenteeism, showing up to work intoxicated, stealing, or presenting false information to the company.


Employers are often required to submit one month's written notice of termination, which must be acknowledged in writing by the employee. Employers, on the other hand, are only required to provide two weeks' notice if an employee is unable to perform the job's obligations owing to a lack of qualifications or health difficulties.


Generally, an employee cannot be discharged during a time of temporary disability or leave.

Notice period

The length of notice varies by employer, although it is normally limited to one month.

Severance pay

Severance payments are only required in specific circumstances and are typically equivalent to one or two months' wages.

Probation period

Probationary periods are limited to three months for entry-level positions and six months for managers and similar positions. During the probationary period, either party may terminate employment by providing three days' written notice.

07. Working hours

General

Kyrgyzstan's standard workweek is 40 hours. In certain instances, a worker's wage for night work must be at least 1.5 times the base wage.


Work performed on a scheduled day off or a holiday shall be compensated at a rate not less than twice the worker's regular rate of pay.

Overtime

Overtime is compensated at a rate of at least 1.5 times the worker's basic hourly rate for the first two hours and at a rate of at least two times the worker's basic hourly rate for the third hour and any additional overtime hours.

08. Minimum wage

General

The Kyrgyz Republic's minimum monthly wage is 1750 Kyrgyzstani Som, or about $20.

09. Employee benefits

General

Kyrgyzstan has a mandatory health insurance system that includes basic, mandatory, and voluntary health insurance. All citizens in the Kyrgyz Republic have access to free primary health care. A co-payment is required for hospitalization.

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

Establishing an entity in

Kyrgyzstan

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

Kyrgyzstan

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

Kyrgyzstan

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

Kyrgyzstan

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

Kyrgyzstan

via our Employer of Record / PEO solution.

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