Turkmenistan is becoming a strong contender for companies choosing to hire abroad, due to its strategic location in Central Asia and its prominence in sectors such as energy, construction, and transportation.

An Employer of Record provider can help companies hiring in Turkmenistan, from ensuring workers are hired legally to administering employee benefit compliance. This guide will explain how to hire in Turkmenistan, from instructing an EOR to understanding local labor laws.

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How to Hire Employees in Turkmenistan

There are a few different methods companies can use when hiring in Turkmenistan:

Setting Up a Local Entity

Companies that want to retain full control when hiring new workers may want to consider setting up a local entity. This involves submitting documents to the Ministry of Finance and Economy in Turkmenistan, reserving a business name, and opening a corporate bank account. 

This can take in the region of 1 – 3 months, and may incur legal and consulting costs of up to a few thousand US dollars, making it more suited to businesses planning a long-term strategy in Turkmenistan.

Working with an Employer of Record (EOR)

Instructing an Employer of Record (EOR) can be a good choice if you’re looking to outsource some of your hiring responsibilities to an experienced business in Turkmenistan.

An EOR would act as the legal hirer of new workers, making sure contracts are drafted correctly, payroll and tax contributions are implemented, and employee benefits are administered.

This is ideal if you’re looking to test the market or want to avoid large financial/administrative workloads.

Hiring Independent Contractors

Contractors or freelancers are ideal for companies that need short-term workers or have project-based tasks to complete.

Turkmen labor laws draw a clear distinction between employees and contractors, which means you must classify workers correctly to avoid issues with tax/social insurance contributions.

Turkmenistan EOR vs Legal Entity in Turkmenistan

Companies should think about their long-term goals when hiring in Turkmenistan and choosing which method of employment is best for them.

An EOR can help to guide companies through the hiring process, ensuring compliance when working through a foreign legal environment and protecting them from issues around complex local labor laws.

They allow businesses to focus on areas that need them most, while the EOR handles local compliance.

If you’re planning to sign long-term, local contracts or invest long-term in hiring in Turkmenistan, establishing a legal entity is probably the best choice. If you’re hiring a few employees or feel your company would benefit from legal support when taking on new employees, an EOR would suit you better.

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Using an Employer of Record in Turkmenistan

An EOR in Turkmenistan covers a range of services, ensuring your company is compliant with local labor laws without the need to establish a legal entity.

Turkmenistan Employer Of Record

Some of the tasks an EOR would cover include:

  • Employment contracts: An EOR would draft contracts in Turkmen or Russian, including job title/responsibilities, salary, working hours, and leave entitlements, ensuring compliance with the Labour Code of Turkmenistan.
  • Payroll processing: Payrolls are often handled by an EOR, ensuring that deductions are made for income tax, social insurance, and benefits-in-kind.
  • Tax and social contributions: EORs will ensure employees are registered with the State Social Insurance Fund, the Pension Fund, and the local Turkmenistan tax authorities.
  • Compliance with labor regulations: The Labour Code of Turkmenistan will be adhered to in all activities, including contracts, working conditions, and termination regulations.
  • Benefits administration: EORs will ensure that employees receive all statutory benefits they are entitled to, such as paid sick leave and holiday tracking.

How Much Does a Turkmenistan EOR Cost?

The cost of an EOR in Turkmenistan varies depending on the provider, the number of employees in your company, and the extent of services required.

There is typically an onboarding fee of between $1,000 – $3,000 per employee, with ongoing monthly fees of between $500 – $1,200 per employee. 

These fees still tend to be more cost-effective than establishing a legal entity in Turkmenistan, particularly if you have a small team or need just a few services handled when hiring abroad.

Employment and Labor Laws in Turkmenistan

It’s crucial for companies operating in Turkmenistan to adhere to local labor laws, regardless of whether they’re using an EOR or establishing a legal entity.

In the sections below, you’ll find an overview of what employers must provide and what they should be aware of when hiring in Turkmenistan.

Key Contract Requirements

Employers must follow obligations set out in the Labour Code of Turkmenistan. The following requirements apply when embarking on an employment relationship:

  • Formal Job Offer and Acceptance: Businesses must provide workers with a formal job offer, explaining the role and duties of the job. This must be accepted before drafting an employment contract.
  • Written Employment Contract: Turkmenistan labor law stipulated that employees must be provided with a written employment contract, either written in Turkmen or Russian, and it should be signed by both parties.
  • Registration with Local Authorities: New workers must be registered with the State Tax Service of Turkmenistan for income tax contributions, the State Social Insurance Fund for social insurance payments, and the Pension Fund for retirement allocations. Registration with the respective institutions must be completed within 10 days of the employee starting work.
  • Right to Work Verification: Foreign nationals must be verified as holding a valid work permit/residence registration. They must also have submitted documents to the State Migration Service of Turkmenistan and comply with Turkmenistan’s quota system.
  • Notification of Employee Rights: Workers must be informed of their legal rights, including minimum wage, working hours, and complaint procedures.
  • Health and Safety Compliance: Employers must provide workers with a safe working environment and respond to any workplace accidents promptly.
  • Equality: Discrimination laws in Turkmenistan prevent employees from being discriminated against based on gender, ethnicity, language, religion, or political opinion.
  • Onboarding: Businesses must welcome new employees by providing an introduction to company policies, issuing an internal labor regulation document, and maintaining an HR file on each new employee.

Working Hours

Working hours in Turkmenistan are typically 40 hours per week, spread over 5-6 days. Employees must receive a break after working for a minimum of 4 hours continuously.

Overtime

Overtime is permitted in Turkmenistan, but must be paid at a minimum rate of 1.5 times an employee’s normal wage. Hours must be limited to four hours over two consecutive days, or 120 hours per year.

Probation Periods

Probationary periods generally last up to 3 months for workers in Turkmenistan. Managerial positions or highly skilled roles may incur a longer probation period of up to 6 months.

Learn more about probationary periods in Turkmenistan

Payroll and Employment Taxes in Turkmenistan

Employers must follow specific payroll rules when hiring in Turkmenistan, and ensure that the relevant systems are contributed to in terms of taxes and social insurance.

We’ve included below a summary of payroll cycles, minimum wage requirements, and employer/employee contributions that must be allocated.

Payroll Cycle

Employees in Turkmenistan are typically paid monthly, often towards the end of the month or the beginning of the next month.

Minimum Wage

The minimum wage in Turkmenistan is TMT 1,410 per month, as of January 1st, 2025.

Learn more about minimum wage in Turkmenistan

Bonus Payments

There is no statutory right to bonus payments in Turkmenistan. Some companies may offer a 13th salary or performance bonuses as a supplementary benefit, but this is not mandated by law.

Employer Tax Contributions

Employers must pay 20% of their monthly payroll towards the social insurance system. They must also pay an additional 3.5% for any employees holding a hazardous occupation.

Employee Payroll Contributions

Employees are not responsible for social insurance costs. Those that are voluntarily insured pay 2% of their gross earnings.

Self-employed workers must pay 10% of the legal monthly minimum wage towards social insurance.

Income Tax

Income tax for individuals working in Turkmenistan is 10% as of 2025, which applies to employment, business, and professional income.

Pension System

The pension system in Turkmenistan consists of 2 mandatory pillars:

  • Labor Pension: Standard pension based on contributions to the social insurance fund. Allows men to retire at 62 with at least 25 years of contributions, and women to retire at 57 with at least 20 years of contributions.
  • Social Pension: Non-contributory pension for vulnerable members of society, including elderly people who don’t qualify for the labor pension, disabled people, and those under state care.

There is currently no private pension system in Turkmenistan.

Tax Compliance and Payroll Reporting

Employers in Turkmenistan must report payroll and tax contributions correctly and on time. The system is state-controlled, which means that all reporting must be carried out through government channels.

Accurate records of salaries, bonuses, deductions, and paid leave must be kept securely, and employers are responsible for withholding and paying personal income tax, social contributions, and pension payments.

Non-compliance can result in financial penalties, interest on unpaid taxes, and criminal liability in extreme cases.

Work Permits and Visas in Turkmenistan

Hiring foreign nationals in Turkmenistan involves verifying work permits and visas before employment begins. The types of visas foreign workers may need include:

Work Visa (E-Type)

Lasts 1 year, and is for foreign nationals taking employment in Turkmenistan.

Business Visa (B-Type)

Lasts up to 30/90 days, designed for short-term business visits, meetings, or negotiations.

Diplomatic/Service Visas

For diplomatic/official government workers, duration varies.

Work permits are also required and involve obtaining approval from the State Migration Service of Turkmenistan, submitting relevant documentation, and paying state fees.

Time Off and Leave in Turkmenistan

Mandatory Leave Entitlements

Workers in Turkmenistan are entitled to 30 days of paid annual leave after completing 1 year of continuous service. Some employees, such as teachers or those in scientific organizations, may be eligible for up to 45 days of paid leave per year.

Public Holidays

Employees in Turkmenistan are permitted to take public holidays as paid days off. The public holidays in Turkmenistan in 2025 are as follows:

  • New Year’s Day (January 1)
  • International Women’s Day (March 8)
  • Nowruz Bayram (Spring Festival) (March 21–22)
  • Oraza Bayram (March 30)
  • Constitution Day (May 18)
  • Day off for Constitution Day (May 19)
  • Kurban Bayramy (June 6)
  • Kurban Bayramy Holiday (June 7–9)
  • Independence Day (September 27)
  • Day of Commemoration and National Mourning (October 6)
  • Day of Neutrality (December 12)

Sick Leave

Employees are entitled to 10 days of sick leave per year. This can vary depending on the terms stipulated in an employee’s contract. Longer leave periods are typically paid via the social security system.

Maternity Leave

Female employees are entitled to 112 calendar days of maternity leave, which is typically separated as 56 days before birth and 56 days after birth.

This is generally paid at 100% of an employee’s normal wages.

Paternity Leave

There is no statutory right to paternity leave in Turkmenistan. Male employees may be granted leave when they have a child, but this is provided at the discretion of the employer.

Parental Leave

Both male and female employees are able to take unpaid parental leave to take care of a child. This can be taken until the child reaches the age of three.

Bereavement and Jury Duty

The Labour Code of Turkmenistan stipulates that workers may be granted 2 – 3 days of bereavement leave in the event of the death of a close family member. It is the employer’s decision whether this leave is paid or unpaid.

Jury duty is not a standard practice mandated by law in Turkmenistan. Therefore, employees are not typically called for jury duty.

Employee Benefits in Turkmenistan

Employers are encouraged to offer additional perks alongside statutory benefits to their workers to attract skilled workers and increase employee retention rates.

Supplementary benefits that are particularly prevalent in this country include 13-month pay, company cars, and educational support.

The mandatory benefits in Turkmenistan include:

  • Sickness benefits
  • Maternity benefits
  • Annual leave
  • Overtime pay

Some examples of supplementary benefits companies could offer include:

  • Performance bonuses
  • Private healthcare insurance
  • Housing, food, or transport expenses
  • Advanced training schemes
  • Flexible working hours

Terminations and Severance in Turkmenistan

Ending an Employment Contract

An employment contract can be ended by either the employer or the employee. Typical reasons that an employment contract may be terminated include:

  • Redundancy
  • Mutual agreement
  • End of fixed-term contract
  • Repeated poor performance
  • Employee misconduct
  • Breach of contract
  • Business closure
  • Health and safety issues

Notice Periods

Employees must give a minimum of 2 weeks’ written notice when resigning from a job position.

Employers must provide 2 months’ notice in the case of redundancies, organizational changes, or business liquidation. Notice may not be required if the employee is being terminated due to misconduct.

Severance Pay

Employers are required to pay employees severance if they make a worker redundant.

This is usually a minimum of 2 weeks’ average salary, based on an average of the employee’s wages over the last 2 months. This does not increase with the employee’s length of service.

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

There are many advantages to expanding your business into Turkmenistan, particularly if you have the support of an EOR provider experienced in Turkmen labor laws.

It’s important to fully understand the labor laws of this country before employing new workers, which is where an EOR can help to ensure complete compliance and ensure your business adheres to tax requirements and cultural expectations.

Remote People offers Employer of Record (EOR) services tailored to your specific business needs—whether it’s payroll management, benefit administration, or drafting compliant employment contracts. With an EOR handling the legal responsibilities of hiring, you can focus on the areas of your business that matter most.

If you’re ready to expand into Turkmenistan and start hiring skilled workers, contact Remote People. We’re ready to support you at every stage of your hiring journey.