Guide to employment, payroll and benefits in

Uzbekistan

Rivermate offers complete payroll, benefits and compliance services for

Uzbekistan

01. Overview

Last updated: 

August 19, 2021

Currency
Uzbekistan Som
Capital
Tashkent
Ease of doing business
69.9
Language
Uzbek
Population
33469203
GDP growth
5.30%

02. Grow your team in

Uzbekistan

with Rivermate

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

Uzbekistan

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

Uzbekistan

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

Uzbekistan is a landlocked country in Central Asia, formally known as the Republic of Uzbekistan. It is bordered on the north by Kazakhstan, the northeast by Kyrgyzstan, the southeast by Tajikistan, the south by Afghanistan, and the south-west by Turkmenistan and the autonomous republic of Karakalpakstan. It is one of only two doubly landlocked nations, along with Liechtenstein. In ancient times, what is now Uzbekistan was part of the Iranian-speaking Transoxiana and Turan region. Eastern Iranian nomads known as Scythians were the first documented settlers, establishing kingdoms in Khwarazm, Bactria, Sogdia, Fergana, and Margiana. The region was incorporated into the Iranian Achaemenid Empire and governed by the Iranian Parthian Empire and later the Sasanian Empire until the Muslim conquest of Persia in the seventh century, after a period of Macedonian rule. During the early Muslim conquests, the majority of the population, including the local ruling classes, converted to Islam. Cities like Samarkand, Khiva, and Bukhara started to prosper as a result of the Silk Road, and key figures from the Islamic Golden Age emerged, including Muhammad al-Bukhari, Al-Tirmidhi, Ismail Samani, al-Biruni, and Avicenna. The Mongol invasion in the 13th century decimated the local Khwarazmian dynasty, as well as Central Asia as a whole, and the region was subsequently ruled by Turkic peoples. The Turco-Mongol conqueror Timur was born in the city of Shahrisabz, who founded the Timurid Empire in the 14th century and was proclaimed the Supreme Emir of Turan with his capital in Samarkand, which became a center of science under the rule of Ulugh Beg, giving birth to the Timurid Renaissance. In the 16th century, the Uzbek Shaybanids invaded the Timurid dynasty's lands, relocating the center of power to Bukhara. The area was divided into three states: Khiva Khanate, Kokand Khanate, and Bukhara Emirate. Emperor Babur's conquests in the east contributed to the creation of the Mughal Empire, India's most recent invasions. During the 19th century, the Russian Empire eventually absorbed much of Central Asia, with Tashkent serving as the political capital of Russian Turkestan. The Uzbek Soviet Socialist Republic was founded as an autonomous republic within the Soviet Union in 1924 as a result of national delimitation. On August 31, 1991, it proclaimed independence as the Republic of Uzbekistan, following the breakup of the Soviet Union. Because of its long history and strategic position, Uzbekistan has a rich cultural heritage. Uzbek is the country's official language, a Turkic language written in a modified Latin script and spoken by around 85% of the population. Russian is widely spoken among ethnic groups and in government. Uzbeks make up 81% of the population, with Russians, Tajiks, Kazakhs, and others making up the rest.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to a minimum of 15 days of paid vacation per year after six months of employment. Employees under the age of 18, those with certain types of impairments, those who work in exceptionally tough or dangerous occupations, and others are all eligible to supplementary leave.

Public holidays

The following public holidays are observed in Uzbekistan:New Year’s DayInternational Women’s DayNavruzRemembrance DayEid al-FitrIndependence DayEid al-AdhaTeachers DayConstitution Day

Sick days

Employees in Uzbekistan do not have a defined amount of sick days. Those who need to care for a sick family member, as well as employees who are unwell themselves, are usually eligible for paid sick leave.

Maternity leave

Maternity leave is granted to female employees for a total of 126 days. Mothers-to-be are entitled to 70 days of maternity leave before the due date and 56 days after the due date (70 days if the birth has complications or if it is a multiple birth). The mother may be eligible for a social security benefit while on maternity leave.

Paternity leave

There is no statutory paternity leave.

Parental leave

Apart from maternity leave, there are no provisions in the law in Uzbekistan regarding parental leave.

Other leave

06. Employment termination

Termination process

Employers may fire an employee only for a legal reason, which may include company changes or personnel-related difficulties. In certain cases, a collective bargaining agreement may compel the employee's union or employee representatives to approve to the termination.


Employees are entitled to receive written notice of their termination. Two weeks or two months' notice is required, depending on the reason for dismissal. If an employee is entitled to severance, it is calculated as one month's salary for every two years of employment.

Notice period

The duration of the notice period is determined by the reason for termination. If the reason for termination is redundancy, there must be a two-month notice period. If an employee's ability to perform their duties is harmed by a lack of qualification or a health condition, the notice period must be at least two weeks. If the reason for the notice is a change in ownership of the business, the notice must be at least two months. If the reason for termination is gross misconduct or performance, the notice period is reduced to three days. It is permissible to make a payment in lieu of notice.

Severance pay

Severance pay is not statutory in Uzbekistan.

Probation period

There is no statutory probationary period in Uzbekistan but an employee and their employer may agree on it and must be stated in the employment agreement.

07. Working hours

General

A typical workweek consists of 40 hours spread over five or six days. The typical workday is eight hours if the employee works five days a week and seven hours if the employee works six days a week. Younger employees, as well as those with particularly difficult, dangerous, or stressful jobs, and those with certain types of disabilities, have their work hours reduced.

Overtime

Overtime is permitted, subject to certain restrictions. Overtime employees are entitled to additional compensation. Overtime and work performed on a rest day are compensated at 200 percent of the regular rate of pay.

08. Minimum wage

General

The monthly minimum wage in Uzbekistan is 747,300 UZS.

09. Employee benefits

General

Uzbekistan offers universal health care, although many expenses are borne by the patient. There are just a few private medical providers.

Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

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

Establishing an entity in

Uzbekistan

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

Uzbekistan

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

Uzbekistan

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

Uzbekistan

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

Uzbekistan

via our Employer of Record / PEO solution.

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