4. Types of leave

There is no information about the types of leave for this country.
Learn more about 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

Employees are entitled to three days of paid sick leave each year. For serious sickness, the entitlement may be increased to 6 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

Employees are entitled to three days of paid sick leave each year. For serious sickness, the entitlement may be increased to 6 days.

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; the birth of a child; and the death of a relative.

5. Employment termination

There is no information about employment information for this country.

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.

Probation period

Probationary periods in Kazakhstan usually last three months.

Severance pay

There are no provisions in the law regarding severance pay.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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.

7. Minimum wage

There is no information about the working hours for this country.

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

8. Employee benefits

There is no information about the working hours for this country.

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.

9. Taxes

There is no information about the working hours for this country.

Corporate tax

The corporate tax rate is 20% and is applied on a calendar year basis. Corporate income tax applies to all Kazakhstan legal companies and branches of foreign legal organizations (CIT). Taxable income is calculated by subtracting the taxpayer's total yearly income from allowed deductions.

Resident businesses are taxed on their global earnings in Kazakhstan, while non-resident companies operating via a permanent presence in Kazakhstan are taxed solely on the income due to that permanent establishment.

Non-residents without a permanent presence in Kazakhstan who receive income from Kazakhstan-sourced sources are usually liable to income tax withheld at the point of payment on Kazakhstan-sourced income.

The qualifying agricultural income of legal companies producing agricultural goods is subject to a lower CIT rate of 6%.

Furthermore, taxpayers operating in special economic zones (SEZs) may be excluded from CIT provided specific legislative criteria for such advantages are fulfilled.

Individual income tax

A single flat rate of 10% (in certain instances 20%) applies to the majority of personal income; 5% applies solely to dividends earned in Kazakhstan.

VAT, GST and sales tax

VAT is now levied at a rate of 12%. This tax is levied on the purchase price of products, works, and services, as well as imports. Goods exports and international transportation services are taxed at 0% VAT. There is a list of VAT-exempt products, works, and services (e.g. sales of medicines, financial services provided by financial institutions, financial leasing services, notary and advocacy services, operations with financial securities and investment gold, loan transactions).

In 2021, the mandatory VAT registration level will remain at 30,000 MCI. The VAT threshold for individual businesses utilizing special tax regimes is set at 114,184 MCI.

The threshold will be lowered to 20,000 MCI beginning in 2022. A calendar quarter is used for VAT reporting.

10. VISA and work permits

There is no information about the working hours for this country.

All foreign citizens who want to visit Kazakhstan must get a visa. A visa to Kazakhstan may be acquired via diplomatic/consular services. Business, tourist, transit, diplomatic, official, investment, work, student, and medical visas are all available.

Kazakhstan's immigration system gives numerous alternatives for employers of foreign nationals. Nationals of Armenia, Belarus, Kyrgyzstan, and Russia are not required to get a visa or a work permit. The requirements, processing dates, work eligibility, and perks for accompanying family members differ depending on the kind of visa.

Unless they are visa free due to their nationality, business travellers must get a business visa before traveling. Business visas are classified into three classes (B1, B2, and B3) based on the purpose of the visit. Business visas may be awarded for single, double, or multiple entries; visa validity varies depending on the kind of visa.

The Work Permit is used by skilled professionals. The validity of a work permit spans from one to three years, depending on the status of the foreign national. Renewal possibilities differ according to work permit category.

11. Employer Of Record service terms

There is no information about the working hours for this country.

Employment contracts

Employment contracts may be for a set amount of time or for an unlimited period of time.

In Kazakhstan, it is legally essential to have a written employment contract in the local language that specifies out the conditions of the employee's remuneration, benefits, and termination requirements. In Kazakhstan, an offer letter and job contract should always mention the salary and any other compensation amounts in Kazakhstani tenge rather than a foreign currency.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Kazkhstani Tenge (KZT)

13.Opening a subsidiary in Kazakhstan

There is no information about the working hours for this country.

How to set up a subsidiary

The procedure of establishing a Kazakhstan subsidiary is dependent on the company you choose, the location of your office building, and other factors. Distinct parts of Kazakhstan might have their own subsidiary laws, much as different states. Before settling on a suitable site, do some study to determine whether it will be simple or difficult to integrate there.

Kazakhstan will enable you to organize as a limited liability partnership (LLP), joint stock company, branch office, or representative office, among others. Each kind of firm has its own set of Kazakhstan subsidiary laws. However, since it reduces risk, the most common kind of corporate structure is an LLP.

The following actions are required to establish your Kazakhstan subsidiary as an LLP:

1. Online or in-person registration of your legal organization with the state

2. Obtaining a digital signature and registering for taxes at the Public Registration Center

3. Notarizing state registration certificates and other post-registration documents

4. Opening a bank account in your home country

5. Employees' registration for life and health insurance

Subsidiary laws

To prevent expensive penalties or delays, it is essential to observe Kazakhstan subsidiary legislation pertaining to an LLP. Because shareholders do not have limitless responsibility for the partnership's losses, LLPs are the most popular legal entity. If your company has difficulties, your personal assets will be safe if you incorporate as an LLP.

To establish your Kazakhstan subsidiary as an LLP, you will require a single partner of any country. You must also deposit a minimum of $1 in the partnership's capital and designate someone to serve as the director. All legal papers must be translated into one of two languages: Kazakh or Russian. Finally, all translations must be notarized before they may be submitted for incorporation.

13. Why choose Rivermate as your Employer of Record / PEO in Kazakhstan

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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