How to Hire Employees in Kazakhstan

Employers can hire employees in the following ways:

Setting Up a Local Entity

While the process to set up a legal entity is considered straightforward, some employers may struggle to overcome regulatory hurdles. Registering a legal entity is suited to businesses that want a permanent presence in Kazakhstan. 

Working with an Employer of Record (EOR)

An EOR firm in Kazakhstan is familiar with local business regulations and the employment laws. They can guide you through the correct hiring practices and compliantly onboard employees.

An EOR supports your professional expansion into Kazakhstan by managing taxes, payroll, and the administration of employee benefits as per the Labor Code of the Republic of Kazakhstan. Businesses that rely on the services of an EOR are not required to set up a legal entity. 

Hiring Independent Contractors

Independent contractors are governed by the Civil Code. While contractors offer flexibility, the employment relationship is different from that of permanent workers. For example, independent contractors are not offered an employment contract but a service agreement and are not entitled to the benefits of full-time staff.

Before engaging a contractor, employers must recognize the risk of employee misclassification and the associated penalties.

Kazakhstan EOR vs Legal Entity in Kazakhstan

Choosing between an EOR and registering a legal entity in Kazakhstan requires an assessment of your business goals and a comparison of the costs for each solution.

A Kazakhstan EOR will prevent non-compliance issues by adhering to the Labor Act. As clients do not have to register a business to hire a workforce with an EOR, they can save on the costs of business permits and ongoing administration. An Employer of Record oversees HR management, employee benefits, payroll, and tax reporting. Entrusting these services to a third party allows businesses to focus on growth and income generation. An EOR can help you test the market before establishing a legal entity.

International employers registering a business may encounter bureaucratic hurdles and must understand local laws to prevent registration delays and non-compliance. Understanding the local languages of Kazakh and Russian may create additional problems for business expansion and hiring employees.

The costs of registering a business in Kazakhstan depend on the type of entity and service package. Most foreign employers seek legal counsel when establishing an entity to guarantee adherence to labor laws. Registration fees can range from a few hundred dollars to $1000. To set up a limited liability partnership, or LLC, costs approximately $3400. In addition to registration costs, the minimum share capital must be paid based on the type of entity. For an LLP, the minimum capital requirement is 100 MRP (Monthly Calculation Index), equivalent to $678.71 as of 2024.

Along with registration fees and minimum capital requirements, business owners must assess monthly expenses such as rent and utilities to determine affordability.

Registering a legal entity in Kazakhstan can take anywhere from 24 hours to two months. Hiring a legal professional to guide you through this process will ensure the correct documents are filed and calculations performed to avoid processing delays.

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Using an Employer of Record in Kazakhstan

When you choose to partner with an EOR firm in Kazakhstan, your business can benefit from HR administration, payroll processing, employee onboarding, and tax management. The EOR serves as a legal employer and handles compliance with local employment regulations. The client company remains in control of the workforce and must provide employees with training, performance evaluations, and safe working conditions. 

Because you don’t need a legal entity with an EOR, your business will gain rapid market access while connecting to top talent. 

A professional partnership with a Kazakhstan EOR includes the services described below:

  • Employment Contracts: An EOR firm will assist with developing compliant employment contracts. Both permanent and fixed contracts must be written in Kazakh or Russian, with an English version for international employers. The contract must describe the employee’s position, duties, salary, benefits, and tax obligations. 
  • Payroll: The professional EOR ensures that payroll is processed on the last day of every month. Experts will calculate salaries, employee benefits, and taxes and submit the payments to the relevant authorities on time. 
  • Tax and social contributions: An EOR will help you meet your tax and social security obligations by adhering to the Tax Code. This includes the calculation and deduction of personal income tax, pension fund contributions, and social tax. The Employer of Record keeps clients updated on tax laws to prevent non-compliance and registers employees during onboarding. 
  • Compliance with labor regulations: An EOR avoids penalties for non-compliance with Kazakhstan’s Labor Code. The third-party service protects against employee misclassification, upholds employee rights, and minimizes penalties. The EOR will inform employers of changes in employment practices and labor laws for compliance purposes. 
  • Benefits administration: Employee benefits are tracked, calculated, and processed every month. These include deductions for social security contributions and the administration of mandatory and supplementary benefits. 

How Much Does a Kazakhstan EOR Cost?

Kazakhstan EORs differ in terms of their pricing models and range of services. The costs to set up employees with an Employer of Record are usually based on a percentage of the employer’s payroll and employee salaries, in addition to service fees. 

Remote People’s Kazakhstan EOR service starts at USD 199/month per employee with transparent pricing and no hidden fees. This covers payroll processing, tax compliance, social insurance administration, pension fund management, and full labor code compliance.

Client companies offer add-on services such as handling work permits, serving notices, and ending employment contracts as per the local labor laws. These add-ons come at an extra cost.

Utilizing the services of a Kazakhstan EOR offers affordability, efficiency, and peace of mind for businesses expanding in the Central Asian country. An Employer of Record minimizes the ongoing administration costs, updating permits, and complicated paperwork.

Employment and Labor Laws in Kazakhstan

To maintain compliance in Kazakhstan, businesses must adhere to the Labor Code. The labor laws cover all aspects of the employment relationship to ensure fair practices. The following regulations must be incorporated when hiring in Kazakhstan:

Key Contract Requirements

Employment contracts may be fixed-term or indefinite. Fixed-term contracts are typically for at least one year and may be extended up to two times. After successive renewals beyond this limit, the contract automatically converts to an indefinite-term contract under the Labour Code.

Kazakhstan employment contracts must include:

  • Job offer and acceptance: Once an employee receives an official job offer, the employer must present them with an employment contract. The contract should include the job description, salary, benefits, and the official start date of employment. The employee must understand the contract terms and sign the offer to legalize the employment arrangement.
  • Written employment contract: Written contracts are required in Kazakhstan in the official languages of Kazakh or Russian. It must stipulate the roles of the employer and employee. If an English contract is drafted, it only serves as a translation or version of the original Kazakh or Russian contract.
  • Registration with Revenue: An EOR ensures that employees are registered with the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan (the SRC). In terms of social security, employees are registered with the Ministry of Labor and Social Protection (MOLSP) and the State Social Insurance Fund.
  • Right to work verification: Foreign nationals must have a work permit to be employed in Kazakhstan. Non-resident and full-time employees and independent contractors require work permits. Kazakhstan offers different categories of work permits based on qualifications and company transfers.
  • Notification of employment rights: The employment contract covers vital aspects of the employment relationship, including employee rights. As per the labor code, the contract must include employee remuneration, steps for contract termination, and specified working conditions, such as working hours.
  • Health and safety compliance: Every employee has the right to a safe and productive workplace. It is the employer’s responsibility to provide these conditions for their staff.
  • Equality in employment: The Kazakhstan Labor Code makes provisions for non-discrimination against employees based on age, ethnicity, race, and religious beliefs.
  • Onboarding: For national workers, the EOR will manage the necessary documentation for onboarding, including work visas or permits for foreign nationals. Non-Kazakhstani citizens will be assisted with work visa renewals and applications.

Working Hours

Kazakhstani workers complete 40-hour workweeks or eight-hour workdays from Monday to Friday. 

Overtime

Overtime work in Kazakhstan generally requires the employee’s written consent and is limited to 2 hours per day and 12 hours per month (120 hours per year). Overtime must be compensated at no less than 150% of the employee’s standard wage.

Work performed on public holidays or weekly rest days must be compensated either through increased pay or a compensatory day off. Night work, defined as 10:00 PM to 6:00 AM, must also be paid at 150% or rate determined by employment agreements.

Probation Periods

Under Kazakhstan’s Labour Code, the probation period cannot exceed three months for most employees. For certain senior positions such as company executives, chief accountants, and heads of branches or representative offices, the probation period may extend up to six months.

During probation, either party may terminate the employment contract with 3-working days written notice if the employee fails to meet job requirements. The probation period cannot be extended beyond the statutory maximum, and any time the employee is absent from work (such as sick leave or other approved absences) does not count toward the probation period.

The pension system in Kazakhstan is state- and privately funded. It consists of a statutory pension in which contributions are paid to the Unified Accumulative Pension Fund (UAPF). Individual employees and employers have the option of voluntarily contributing to an extra retirement fund. The UAPF is responsible for managing the pension fund. 

Data Protection

Kazakhstan regulates employee data under the Law on Personal Data and Their Protection (2013). Employers must generally obtain the employee’s consent before collecting, processing, or storing personal data, except where processing is permitted by law.

Organizations are also required to implement appropriate legal, organizational, and technical safeguards to ensure the security and confidentiality of personal data. Non-compliance with data protection requirements may result in administrative or criminal penalties under Kazakhstan legislation.

Payroll and Employment Taxes in Kazakhstan

Once you are ready to hire employees in Kazakhstan, the next step is to improve your awareness and understanding of the local payroll laws. Kazakhstan has stringent requirements concerning social security contributions, employee-employer tax obligations, and the general payroll cycle as described below:

Payroll Cycle

Kazakhstan has a monthly payroll cycle in which employees must receive their salaries in the first 10 days of the new month. The date for salary payment is stipulated in the employment contract.

Minimum Wage

Kazakhstan’s minimum wage is KZT 85,000 per month (approximately USD 157), effective January 2024. The government has maintained this level for 2025 and 2026, keeping the statutory minimum unchanged despite earlier discussions about a potential increase.

Kazakhstan also sets a Monthly Calculation Index (MCI) each year, which is widely used to determine statutory thresholds, administrative fines, taxes, social benefits, and other government payments. The MCI is KZT 3,932 (~USD 8.50) for 2025 and increases to KZT 4,325 (~USD 9.40) for 2026, affecting many legal and financial calculations across the country.

Employer Tax Contributions

The table below outlines the main payroll taxes and mandatory contributions in Kazakhstan introduced in 2026.

Contribution / TaxRate
Social Tax11%
Social Insurance5%
Employer Compulsory Pension Contribution (ECPC)3.5%
Mandatory Social Health Insurance (MSHI)3%

Certain employees are exempt from ECPC, including individuals born before January 1, 1975, employees who have reached retirement age, and individuals with Group I or II permanent disabilities.

The Mandatory Social Health Insurance (MSHI) contributions paid to Social Health Insurance Fund (FMSS)  are separate from both social tax and social insurance contributions..

Employee Payroll Contributions

Employees pay a 10% flat rate income tax, which is deducted from their gross income. The employee must contribute 10% of their gross salary to the Unified Accumulative Pension Fund (UAPF). An additional payroll contribution of 2% is made to the mandatory health insurance fund.

Income Tax

Residents in Kazakhstan are subject to a 10% flat personal income tax (PIT) in 2025. Beginning January 2026, a progressive PIT system will apply, with 10% on wage income up to 8,500 MCI (Monthly Calculation Index) and 15% on income exceeding this threshold.

Non-residents are taxed at 15% on Kazakhstan-sourced employment income. The new Tax Code effective January 2026 also sets the standard VAT rate at 16%.

Pension System

The pension system in Kazakhstan is state- and privately funded. It consists of a statutory pension in which contributions are paid to the Unified Accumulative Pension Fund (UAPF). Individual employees and employers have the option of voluntarily contributing to an extra retirement fund. The UAPF is responsible for managing the pension fund. 

Bonus Payments

Bonus payments are not a statutory requirement; however, employers are encouraged to offer them as incentives.

Tax Compliance and Payroll Reporting

In Kazakhstan, tax residents are responsible for paying and reporting tax on international and local income. A consolidated tax report must include social insurance and personal income tax. An annual declaration detailing withheld taxes and income reports must be filed for each employee. 

Kazakhstan labor law requires employers and employees to archive payslips. These payslips must include the employer and employee names and addresses, including the payment period and gross salaries. 

Correctly processing payroll and keeping records of pay slips can prevent non-compliance penalties of fines, reputational damage, and audits.

Work Permits and Visas in Kazakhstan

Kazakhstan regulates foreign employment through a government-controlled quota system that caps the number of foreign workers an employer may hire each year. Before hiring a foreign national, employers must obtain a permit from the local executive authority. Permits fall into four categories: executives and their deputies (Category 1), heads of structural divisions (Category 2), specialists (Category 3), and skilled workers (Category 4).

Processing typically takes 15 to 30 days from the submission of a complete application. Hiring without the required permit may result in administrative penalties of up to 50 Monthly Calculation Index (MCI) units or more, depending on the violation.

Work permits are issued under four categories based on job level:

Three specialist permit types apply in specific circumstances:

  • The critical skills permit is available for individuals with qualifications in high demand.
  • The general employment permit covers most standard foreign hires and requires registration with the Ministry of Labor and Social Protection.
  • The intra-company transfer permit applies to employees moving between a company’s branches, subsidiaries, or affiliates, and offers faster processing with no labor market test required.

Navigating Kazakhstan’s quota system and permit categories adds meaningful lead time to any international hire. Working with an EOR that holds established relationships with local authorities can reduce delays and help ensure applications are structured correctly from the outset.

Time Off and Leave in Kazakhstan

Mandatory Leave Entitlements

Employees in Kazakhstan are entitled to a minimum of 24 calendar days of paid annual leave, with additional leave granted for certain hazardous or harmful occupations. Annual leave may be split into parts, provided one portion is at least 14 consecutive calendar days.

Unused leave may be carried forward, but the Labour Code prohibits withholding annual leave for two consecutive years. Employers may also grant additional leave through collective agreements or employment contracts, provided the statutory minimum entitlement is maintained.

Maternity Leave

Maternity leave in Kazakhstan is 126 calendar days, consisting of 70 days before childbirth and 56 days after. In cases of complicated or multiple births, postnatal leave increases to 70 days, for a total of 140 days.

For women living in areas affected by nuclear testing, maternity leave is 170 days (90 prenatal and 70 postnatal), and may extend to 184 days in cases of complications or multiple births.

Maternity benefits are paid through the State Social Insurance Fund, based on the employee’s average income. Employers are generally not required to pay salary during maternity leave unless this is provided in the employment contract or collective agreement.

Paternity Leave

Kazakhstan does not provide statutory paid paternity leave. However, fathers may request short unpaid leave of up to 5 calendar days following the birth of a child.

Under the Labour Code of Kazakhstan, either parent—or another relative caring for the child—may take unpaid childcare leave until the child reaches age 3. This leave is granted upon written request, and the employee’s job position must be preserved during the leave period.

Parental Leave

There is no separate parental leave in Kazakhstan. Female employees receive maternity leave, and all workers can take unpaid leave for childcare.

Sick Leave

Employees in Kazakhstan must submit a medical certificate issued by a licensed healthcare provider to qualify for sick leave. Temporary disability benefits are paid by the employer from company funds, calculated based on the employee’s average earnings in accordance with labour regulations.

Sick leave is generally granted for up to 60 calendar days, although longer periods may be approved depending on the employee’s medical condition and the decision of medical authorities.

If an employee remains unable to work for more than two consecutive months due to temporary disability, the employer may have legal grounds to terminate the employment contract, except in cases protected by law, such as maternity-related leave.

Public Holidays

Religious and secular public holidays are observed in Kazakhstan:

  • New Year’s Day (January 1-2)
  • Orthodox Christmas (January 7)
  • International Women’s Day (March 8)
  • Nauryz (Spring Equinox) (March 21–23)
  • Unity Day (May 1)
  • Defender of the Fatherland Day (May 7)
  • Victory Day (May 9)
  • Kurban Ait/Eid al-Adha (Date varies by Islamic calendar)
  • Capital City Day (July 6)
  • Constitution Day (August 30)
  • Republic Day of Kazakhstan (October 25)
  • Independence Day (December 16)

Under Kazakhstan law, when a public holiday falls on a weekend, the next working day is generally observed as a day off, except for Orthodox Christmas and Kurban Ait, which are not transferred.

Bereavement and Jury Duty

Employees receive five days of unpaid leave for bereavement. All Kazakhstani workers are entitled to jury duty leave and must be protected from demotions, salary reductions, and contract terminations during this time. 

Employee Benefits in Kazakhstan

Every employee in Kazakhstan is entitled to mandatory benefits of social security, overtime pay, and paid annual leave. To help employers appeal to skilled workers, they can offer benefits in kind, which are also known as supplementary benefits. While not legally required, additional benefits such as private health insurance, extended leave, and flexible working hours are offered to employees. 

Statutory benefits provided by Kazakhstani employers include the following: 

  • Bereavement leave
  • Paid annual leave
  • Sick leave
  • Overtime pay 
  • Minimum wage compliance
  • Social security contributions
  • Pension fund scheme

Supplementary benefits in Kazakhstan consist of: 

  • Private health insurance
  • Additional retirement benefits
  • Company cars 
  • Programs to improve employee work-life balance

Employees who perform hazardous work duties receive an extra 5% pension contribution.

Terminations and Severance in Kazakhstan

Ending an Employment Contract

The type of employment contract and the details in the agreement determine the process for termination. Employers and employees can facilitate the termination of an employment contract without set notice periods or issuing severance pay. Dismissals are based on the following scenarios: 

  • Mutual agreement
  • Employee misconduct 
  • Redundancy
  • Downscaling 
  • Personal reasons 

Kazakhstan allows employees to form trade unions and engage in collective bargaining. Labor relations operate under a tripartite system involving the government, employers, and employees, and collective agreements may provide benefits above legal minimums. Labor disputes are resolved through conciliation, arbitration, and court proceedings under the Labour Code.

For employees who are members of trade unions, employers must consult the trade union before dismissal and provide one month’s notice prior to termination.

Notice Periods

Kazakhstan’s Labour Code generally requires at least one month’s written notice to terminate an employment contract. During the probation period, either the employer or employee may terminate the contract with 3-working days written notice if the employee fails to meet job requirements.

Fixed-term contracts automatically end upon their expiry unless both parties agree to extend them. In cases of redundancy, employers must provide at least one month’s notice and follow the required notification procedures with employment authorities. When dismissing an employee who is a trade union member, the employer must consult the trade union before termination.

Severance Pay

Severance pay in Kazakhstan is generally at least one month of the employee’s average salary when termination occurs due to company liquidation, workforce reduction, or employer breach of contract. Employees dismissed during probation or for misconduct are not entitled to severance.

Employers must also complete the final settlement—including outstanding salary, compensation for unused annual leave, and any severance payment—on the last working day or within three working days of termination if immediate payment is not possible

Expand into Kazakhstan Easily with Remote People’s Employer of Record (EOR) Solution

Kazakhstan is known for its fairly skilled workers with specialization in the energy, IT, and infrastructure sectors. When you’re ready to expand your workforce by hiring employees in the Central Asian country, you must follow the local labor laws. The laws govern the employment arrangement and guide employers on drafting employment contracts, working hours, annual leave, work permits for foreign employees, and severance pay. 

To successfully establish your workforce while safeguarding against non-compliance, be sure to partner with a Kazakhstani EOR. An Employer of Record handles your payroll, benefits administration, HR, and onboarding, and keeps your business compliant. 

A leading EOR service provider assisting with payroll and compliance matters is Remote People. The professional team offers secure and scalable services for businesses hiring in Kazakhstan. Reach out to the EOR for custom and professional solutions. 

Frequently Asked Question

Kazakhstan’s Labour Code allows remote work arrangements, but employment is generally tied to the jurisdiction where the employee performs their work. If the employee relocates permanently to another country, the employment relationship may fall under the labor and tax laws of that country instead of Kazakhstan.

The onboarding process depends on document preparation and employee registration requirements. Employees must be registered with government systems and social insurance bodies before starting employment. Once the employment contract is signed and the required registrations are completed, onboarding can typically occur within several days to a few weeks depending on the documentation and whether work permits are required.

Yes, employers may conduct background or reference checks if they comply with Kazakhstan’s Law on Personal Data and Their Protection (2013). Employers must obtain the candidate’s consent before collecting or processing personal information for hiring purposes.

Labor disputes in Kazakhstan are typically handled through a conciliation commission within the company, followed by mediation, arbitration, or court proceedings if the dispute cannot be resolved internally. The Labour Code requires employers to establish mechanisms for dispute resolution and protect employee rights during the process.

Yes. Housing allowances, relocation assistance, and other supplementary benefits are permitted under Kazakhstan employment law. These benefits are usually treated as part of the employee’s compensation package and must be properly documented in the employment contract or internal company policies for payroll and tax purposes.