Uzbekistan has emerged as Central Asia’s fastest-growing labour market, combining a young, multilingual talent base, an overhauled 2023 Labour Code and aggressive tax incentives for foreign employers. For companies looking to hire employees in Uzbekistan, the challenge is navigating bilingual contract requirements, a three-stage work-permit process, and the new State Social Insurance regime that took effect on 1 January 2026.

An employer of record in Uzbekistan absorbs all of this work: it becomes the legal employer on paper, runs payroll through the State Tax Committee, withholds the 12% flat personal income tax, remits the 12% employer social tax, sponsors work permits, and terminates in line with Article 173 of the Labour Code. This guide walks through every statutory obligation for 2026, including the minimum wage, social contribution schedules, leave entitlements, overtime premiums, notice and severance tiers, and the full work-visa catalogue.

How an Employer of Record Works in Uzbekistan

What Is an EOR?

uzbekistan employer of record
EOR serves as the legal employer while your company retains direct supervision over day-to-day work

Uzbekistan has emerged as Central Asia’s fastest-growing labour market, combining a young, multilingual talent base, an overhauled 2023 Labour Code and aggressive tax incentives for foreign employers. For companies looking to hire employees in Uzbekistan, the challenge is navigating bilingual contract requirements, a three-stage work-permit process, and the new State Social Insurance regime that took effect on 1 January 2026.

An employer of record in Uzbekistan absorbs all of this work: it becomes the legal employer on paper, runs payroll through the State Tax Committee, withholds the 12% flat personal income tax, remits the 12% employer social tax, sponsors work permits, and terminates in line with Article 173 of the Labour Code. This guide walks through every statutory obligation for 2026, including the minimum wage, social contribution schedules, leave entitlements, overtime premiums, notice and severance tiers, and the full work-visa catalogue.

How an Employer of Record Works in Uzbekistan

What Is an EOR?

An employer of record is a locally registered company that legally hires staff on your behalf in Uzbekistan, while you retain full day-to-day control over the employee’s work, deliverables and reporting lines. The EOR signs the employment contract in both Uzbek and Russian as required under the 2023 Labour Code, registers the worker with the State Tax Committee and the State Fund for Social Insurance, runs monthly payroll in Uzbekistani som (UZS), and assumes every compliance obligation, including PIT withholding, social tax remittance, leave administration and lawful termination.

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Employment Laws and Regulations in Uzbekistan

Employment in Uzbekistan is governed by the new Labour Code of the Republic of Uzbekistan, signed by the President on 28 October 2022 and in force since 30 April 2023. The Code replaced the 1995 labour law and introduced a modern framework aligned with International Labour Organization conventions, including stronger anti-discrimination rules, a written-contract default, and a cleaner severance regime.

Supplementary regulations are issued by the Ministry of Employment and Labour Relations, and social insurance is administered by the State Fund for Social Insurance under the reform package enacted in Law No. ZRU-1101 “On State Social Insurance”, which took effect on 1 January 2026. The 2026 package also moved leave registration into the centralised my.mehnat portal, so every employer, including EORs, must register leave electronically.

Employment Contracts

All employment contracts in Uzbekistan must be concluded in writing before the employee starts work. The Labour Code requires the contract to state the job title, duties, place of work, start date, salary, probation period (if any), working time regime, and grounds for termination. Contracts must be drafted in Uzbek; a parallel Russian version is typical and, in practice, most EORs produce a trilingual Uzbek/Russian/English document so that all sides have a working reference.

Contracts are indefinite by default; fixed-term contracts are allowed only for specific objective grounds such as project work, seasonal employment, or temporary replacement, and the maximum fixed term is five years. Any contract that does not meet the written-form requirement is automatically treated as indefinite under the Labour Code, which exposes the employer to full statutory protection on termination.

Working Hours and Overtime

Normal working time in Uzbekistan is 40 hours per week and 8 hours per day for employees aged 18 and above under Article 215 of the 2023 Labour Code. Reduced hours apply to specific categories: workers aged 16 to 18 are capped at 36 hours per week, workers under 16 at 24 hours, and employees in hazardous jobs at 36 hours.

The workweek is typically five days (Monday to Friday) with two rest days, although a six-day schedule is permitted where justified by the nature of the work. Overtime is permitted only with the employee’s written consent and is capped at 4 hours across any two consecutive days and 120 hours per calendar year; minors, pregnant women and employees with young children are generally prohibited from working overtime.

Overtime premium pay rates in Uzbekistan follow a tiered structure set out in the Labour Code and updated by regulation in November 2025. The table below summarises the statutory multipliers for each category of additional work; rates in collective agreements or individual contracts may be higher but cannot fall below the statutory floor.

Uzbekistan overtime and premium pay rates · Per Labour Code of the Republic of Uzbekistan (2023)
Hour Type
Rate Multiplier
Cap
Notes
Overtime, first 2 hours
1.5× regular hourly rate
4 hrs / 2 days, 120 hrs / year
Requires employee written consent; Article 220
Overtime, hours 3+
2.0× regular hourly rate
Same annual cap
Applies beyond the first two overtime hours
Weekly rest day work
2.0× regular hourly rate
Extra day off may be granted in lieu
Employee may opt for compensatory day off at 1.0× pay
Public holiday work
2.0× regular hourly rate
No cap on holiday-rate premium
Applies to the days listed in Table 4
Night work (10 p.m. – 6 a.m.)
At least 1.5× regular hourly rate
Not counted as overtime
Minimum supplement set by collective agreement
Hazardous conditions
At least 2.0× regular hourly rate
Per hour in harmful conditions
Updated by regulation of 11 November 2025

Overtime cannot substitute for normal working-time scheduling. An employee can refuse overtime outside the narrow exceptions listed in the Labour Code (emergency response, public disaster), and the employer cannot count standard-rate rest-day work toward the annual overtime cap. Premium pay on public holidays is paid on top of the regular salary and is treated as ordinary salary for PIT and social tax purposes.

Minimum Wage

The statutory minimum wage in Uzbekistan is UZS 1,271,000 per month (approximately USD 105 at mid-April 2026 exchange rates), effective from 1 August 2025 under Presidential Decree No. UP-97. The decree also raised the Base Calculation Value (BCV) to UZS 412,000 per month; the BCV is the reference amount used for tax deductions, certain allowances, and some social benefits.

Minimum-wage enforcement falls under the State Labour Inspectorate, and the minimum is a gross amount from which the 12% PIT and the 0.1% INPS contribution are still withheld. There are no separate regional or sectoral minimums in Uzbekistan, and the minimum applies equally to local and foreign employees in standard working-time contracts. For the latest rate history and indexation context, see the RemotePeople Uzbekistan minimum wage guide.

Probation Period

Uzbekistan permits a probation period of up to three months for regular employees, with a longer limit of six months for heads of organisations, their deputies, chief accountants, and heads of separate subdivisions, under Article 90 of the Labour Code. The probation clause must be written into the employment contract before the employee starts work; a contract without a probation clause is automatically treated as permanent from day one. During probation either party can terminate with three calendar days’ written notice, and no severance is payable if the employer ends the contract because of unsatisfactory performance.

Pregnant women, employees under 18, and workers hired through a transfer from another employer cannot be placed on probation. For longer-form guidance on probation mechanics, see the RemotePeople Uzbekistan probation period guide.

Leave Entitlements

Uzbekistan’s statutory leave framework is set out in Chapters 17 and 18 of the 2023 Labour Code. From 1 January 2026 all leave types (annual, sick, maternity, unpaid) must be registered through the my.mehnat labour portal by the employer; an EOR handles this electronically as part of the payroll cycle. The sections below describe each leave type, and Table 5 summarises the statutory entitlements in one view.

Annual Leave

Employees are entitled to a minimum of 15 working days of paid annual leave per year, accrued on a pro-rata basis from the first day of employment. The entitlement rises to 30 working days for employees under 18 and for employees with disabilities (Groups I and II), and additional days apply for work in hazardous conditions, in northern or high-altitude districts, or for long continuous service with the same employer.

Annual leave is generally taken after the first six months of continuous service, but the parties can agree to earlier use. Unused leave can be carried over to the following year only with the employee’s consent; cash compensation in lieu of leave is prohibited except on termination.

Sick Leave

Paid sick leave is capped at 30 calendar days per year, with the possibility of an extension up to 60 calendar days if a medical-social commission confirms continued incapacity. Until 30 June 2026 sick pay is funded by the employer at 60%–80% of average earnings depending on tenure.

From 1 July 2026, under Law No. ZRU-1101, the employer pays only the first five calendar days of each episode of incapacity, and the State Fund for Social Insurance covers day six onwards. Work-related injury and occupational illness are paid at 100% of average earnings throughout the incapacity period.

Maternity Leave

Maternity leave in Uzbekistan is 126 calendar days, split into 70 days before the expected date of birth and 56 days after. The entitlement rises to 156 days in the case of a complicated birth or a multiple birth.

Maternity pay is 100% of average earnings and is funded by the State Fund for Social Insurance from 1 January 2026 (previously reimbursed through the Pension Fund). After maternity leave, mothers are entitled to unpaid parental leave until the child reaches the age of two, with a right of return to the same job.

Paternity Leave

Uzbek labour law does not grant a statutory paid paternity leave. Fathers, grandparents, or other actual caregivers may take the unpaid parental leave until the child reaches the age of two that is ordinarily available to the mother, provided the mother resumes work; during this period the caregiver may be eligible for state social insurance childcare allowances. Employers often grant three days of unpaid or contractual paid leave around the birth as a matter of internal policy; an EOR can include such a benefit in the employment contract.

Other Statutory Leave

Beyond annual, sick and maternity leave, the Labour Code provides for several shorter statutory absences that an employer of record must track:

  • Marriage leave: 3 calendar days of unpaid leave on the employee’s own marriage.
  • Bereavement leave: Up to 3 calendar days of unpaid leave on the death of a close relative.
  • Study leave: Paid leave for state exams and defence of thesis/graduation for employees combining work with study at accredited institutions.
  • Leave without pay: Up to 3 months of unpaid leave per year with the employer’s consent for personal or family reasons.
  • Additional leave for working mothers: 3 extra working days per year for women with two or more children under 12 or a disabled child under 16.

Under the 2023 Labour Code every statutory leave entitlement is summarised in the table below. Annual leave accrues from day one of employment, not after the probation period, which is an important point for planning first-year workforce costs. Maternity and (from July 2026) most sick-leave funding flow through the State Fund for Social Insurance rather than the employer’s payroll.

Uzbekistan statutory leave entitlements · Per Labour Code of the Republic of Uzbekistan (2023)
Leave Type
Duration
Eligibility & Notes
Annual leave (standard)
15 working days / year
Accrues from day one; paid at 100% of average earnings
Annual leave (minors / disabled)
30 working days / year
Employees under 18 and disability Groups I–II
Sick leave
Up to 30 calendar days / year (extendable to 60)
60%–80% of average pay; from 1 July 2026 State Fund covers day 6+
Maternity leave
126 calendar days (156 for complications / multiple births)
100% of average earnings paid by State Fund for Social Insurance
Parental leave
Until child reaches age 2 (unpaid)
Available to mother, father or actual caregiver; childcare allowance may apply
Paternity leave
No statutory paid entitlement
Parental leave shareable; contractual paid days common
Marriage leave
3 calendar days
Unpaid; on the employee’s own marriage
Bereavement leave
Up to 3 calendar days
Unpaid; death of a close relative
Study leave
Paid, duration set by law
State exams and thesis defence at accredited institutions
Unpaid personal leave
Up to 90 calendar days / year
Subject to employer consent

Statutory Employee Benefits

Beyond paid leave, the Labour Code and adjacent social insurance statutes require employers in Uzbekistan to fund or administer a short list of mandatory benefits. A full breakdown of statutory and supplementary benefits is collected in the RemotePeople Uzbekistan employee benefits guide. For exact contribution rates see Tables 1 and 2 in H2 4; the benefits below describe the framework, not the percentages:

Uzbek statutory benefits split between employer-funded and state-funded components. Employers pay the 12% Unified Social Fund contribution that finances the pay-as-you-go state pension covering old-age, disability and survivor benefits; employees contribute 0.1% to the Individual Pension (INPS) accumulative account.

There is no separate employer-funded health insurance contribution. Basic healthcare is provided free through the state system and financed from general taxation, while private top-up insurance is optional and commonly offered by EORs as a voluntary benefit.

Sick-pay funding shifts under the 2026 reform: until 30 June 2026 the employer funds sick pay entirely, but from 1 July 2026 the employer pays only the first five days of any episode of incapacity and the State Fund for Social Insurance covers day six onwards. Maternity and childcare allowances are paid by the State Fund (previously the Pension Fund) for the 126-day or 156-day maternity leave and, in eligible cases, throughout the two-year unpaid parental leave. For work accidents and occupational illness, the employer pays 100% of average wages during work-related incapacity and the State Fund provides long-term disability benefits.

IT Park residents benefit from a separate fiscal regime: a reduced 7.5% personal income tax and a 0% employer social tax rate are guaranteed until at least 2040, alongside simplified immigration procedures for foreign staff.

Recent Regulatory Updates (2026)

Uzbekistan’s employment framework changed materially at the start of 2026. The headline reform is Law No.

ZRU-1101 “On State Social Insurance”, signed in December 2025 and in force from 1 January 2026, which consolidated maternity, sick-leave and childcare allowances under the new State Fund for Social Insurance. A linked rule effective 1 July 2026 transfers sick-pay funding from day six onward to the State Fund, leaving employers responsible only for the first five days of any incapacity episode.

From 1 January 2026 all leave and civil-law contracts must also be registered through the centralised my.mehnat labour portal. On the tax side, the 12% flat personal income tax and the 12% standard employer social tax remained unchanged for 2026, while a lower 1% employer social tax rate for textile and garment employers was extended through September 2028, and the IT Park regime retained the 7.5% PIT and 0% social tax treatment. The minimum wage, set at UZS 1,271,000 per month on 1 August 2025, was carried into 2026 without a January uplift; further adjustments require a fresh Presidential Decree.

Work Permits and Visas in Uzbekistan

Work Permit Requirements

Who Needs a Work Permit

All foreign nationals who perform paid work in Uzbekistan need a work permit, regardless of role or seniority. The only exceptions are citizens of countries with bilateral labour agreements (including Commonwealth of Independent States member states such as Kazakhstan, Kyrgyzstan, Russia, Belarus and Tajikistan), accredited diplomatic staff, and short-term service providers covered by specific government regulations.

The permit is tied to a specific employer, so a change of employer in Uzbekistan requires a new application. IT Park residents follow a separate simplified track with IT-visa eligibility.

Eligibility and Required Documents

The employer applies for a Corporate Work License with the Ministry of Employment and Labour Relations, which authorises the company to hire foreigners, and then an individual Confirmation for the specific employee. Required documents include the foreign national’s passport, diplomas or qualifications (apostilled), employment contract, medical certificate, and proof of no criminal record.

After the Confirmation is issued, the employee applies for the corresponding E-Visa through the State Services Agency e-visa portal. The employee’s monthly salary must meet a minimum threshold set annually by the government to demonstrate the role cannot be filled locally.

Processing Time and Validity

The Corporate Work License is typically issued within 10 working days of a complete application and is valid for one year (renewable). The individual Confirmation takes a further 15 to 30 working days, and the E-Visa is usually issued within 10 working days of the Confirmation.

End-to-end, plan on 8 to 12 weeks for a first-time foreign hire from outside the CIS. Work permits are granted for the duration of the employment contract, up to a maximum of three years, and can be extended before expiry.

Renewal Process

Renewal applications must be filed at least one month before the current permit expires. The employer submits an updated Corporate Work License (if its annual validity is close to expiring), a fresh Confirmation for the employee, and an extended E-Visa application.

Employees can keep working while the renewal is being processed provided the application was submitted on time. IT-Visa holders benefit from a streamlined renewal at the IT Park one-stop shop and can accumulate up to three years of continuous residency.

Common Visa Types for Foreign Workers

Work authorisation in Uzbekistan is issued through the State Services Agency (for the visa) and the Ministry of Employment and Labour Relations (for the permit). An employer of record can sponsor the full catalogue of employment-based visas except for diplomatic and official visas; the IT-Visa track is available only through companies registered in the IT Park regime. The table below lists the main categories used for employment and remote work.

Uzbekistan work visa types for foreign workers · 2026
Visa Type
Duration
Best For
Leads to Permanent Residence?
Processing
Standard work visa (E-Visa)
Up to 3 years, tied to contract
Most foreign employees hired by an EOR or local entity
No, but supports future residence applications
~4 weeks after Confirmation
IT-Visa
Up to 3 years
IT specialists at IT Park resident companies
Yes, pathway to long-term stay
Fast-track via IT Park one-stop shop
Investor visa
Renewable, up to 3 years
Foreign nationals investing USD 100,000+ in an Uzbek company
Yes, with multi-year renewals
~30 working days
Intra-company transfer
Up to 3 years
Senior employees transferred from a parent company abroad
No, but renewable
6–10 weeks end-to-end
Business visa
Up to 1 year, multiple entry
Short business trips, not for salaried employment
No
5–10 working days

Several other visa categories exist but do not authorise employment, so an EOR cannot use them to onboard staff:

  • Tourist visa: Short-stay, no right to work.
  • Student visa: Limited to study; part-time work requires separate authorisation.
  • Transit visa: Up to 5 days, used only for transit.
  • Medical treatment visa: For the stated medical purpose; no right to work.

How an EOR Handles Work Permits

The employer of record acts as the sponsor and files the Corporate Work License and Confirmation under its own Uzbek tax identification number. The client provides the candidate’s documents (passport, diplomas, CV, medical and criminal-record certificates), and the EOR manages every interaction with the Ministry of Employment and Labour Relations and the State Services Agency.

Because the Corporate Work License is granted per employer, EORs that already hold the license can add individual Confirmations faster than a greenfield entity can set up. The work-permit track extends the onboarding timeline described in H3 1.4 by four to eight weeks; IT Park routes compress that to two to three weeks.

Not every EOR can sponsor every visa category: investor visas require the EOR to own part of the client’s structure, so most EOR clients default to the standard E-Visa or, for technology roles, the IT-Visa path. Detailed step-by-step procedures are collected in the RemotePeople Uzbekistan work visa and permit guide.

Payroll, Taxes, and Social Security in Uzbekistan

Employer Contributions

Employers in Uzbekistan fund social insurance through the Unified Social Fund and the Individual Pension Fund. For 2026 the standard employer social tax rate remains 12% of gross payroll, with an additional 0.1% to the accumulative pension account, and preferential rates apply to specific sectors. The table below shows the effective 2026 rates for a standard private employer outside special regimes.

Uzbekistan employer social security contributions · 2026 rates
Contribution
Rate
Notes
Unified Social Tax (standard private employers)
12.0%
Applied to gross payroll; funds state pension, sick and maternity allowances
Individual Pension Fund (INPS) – employer share
0.1%
Funds employee’s accumulative pension account
Unified Social Tax – textile & garment sector
1.0%
Preferential rate to 1 September 2028 (sector stimulus)
Unified Social Tax – IT Park residents
0.0%
Full exemption until 2040 for accredited IT Park members
Total (standard employer)
12.1%
Paid on top of gross salary

Employee Contributions

Employee-side deductions in Uzbekistan are limited to the 12% flat PIT and a 0.1% contribution to the Individual Pension Fund. There is no separate employee social security contribution, no unemployment insurance levy, and no mandatory health-insurance deduction at the payroll level. The table below sets out monthly withholdings for a standard private-sector employee.

Uzbekistan employee payroll deductions · 2026 monthly withholdings
Deduction
Rate
Notes
Personal Income Tax (PIT)
12.0%
Flat rate on employment income for residents and non-residents
Individual Pension Fund (INPS)
0.1%
Mandatory individual accumulative account
PIT: IT Park employees
7.5%
Reduced rate for IT Park resident company staff
PIT: dividends/interest (residents)
5.0%
Applies to dividends and interest received by residents
Total (standard employee)
12.1%
Deducted from gross pay before net payment

Income Tax

Uzbekistan applies a simple flat personal income tax regime, which is a rare feature in the region and one of the main reasons the payroll is straightforward for employers. Residents and non-residents are both taxed at 12% on employment income; residents are taxed on worldwide income while non-residents are taxed only on Uzbek-source income.

A reduced 7.5% rate applies to employees of IT Park resident companies, and dividends received by residents are taxed at 5%. Employees are also entitled to a monthly deduction equal to one Base Calculation Value (UZS 412,000 in 2026) for calculating PIT.

Uzbekistan income tax brackets · 2026
Bracket / Category
Tax Calculation
Employment income (residents and non-residents)
12% flat on gross wages
Employment income, IT Park resident employees
7.5% flat on gross wages
Dividends and interest, residents
5% withholding at source
Dividends and interest, non-residents
10% withholding at source
Freight/transportation income, non-residents
6% withholding at source
Other non-resident Uzbek-source income
12% (reduced from 20% by Presidential Resolution)

Payroll Cycle

Salaries in Uzbekistan are paid at least twice per month in line with Article 243 of the Labour Code, with exact pay dates set in the employment contract or internal labour regulations. In practice most employers pay an advance in the middle of the month and the balance on the last working day, and bank transfer in UZS is the default method; cash payments are tightly restricted and large cash payrolls require a Central Bank exemption.

Payslips must show gross pay, every deduction, social tax, and net pay, and can be delivered electronically. Employers must file the monthly PIT report (Form 1-ST) and social tax report with the State Tax Committee by the 15th of the following month, and annual reconciliations are due by 15 February of the next year. For payroll cycle mechanics and filing deadlines, see the RemotePeople Uzbekistan payroll tax guide.

13th Month Salary and Bonus Pay

Uzbekistan does not mandate a 13th-month salary. Annual bonuses, performance pay, and year-end payments are discretionary and governed by the employment contract, collective agreement, or internal bonus policy. Some sectors (notably banking, oil and gas, and large IT companies) pay a de-facto 13th-month bonus in December by custom, but there is no statutory floor.

Any voluntary bonus is treated as ordinary salary for PIT and social tax purposes, so a UZS 10 million bonus triggers the full 12% PIT and 12.1% employer social tax. There is no statutory 14th month pay, vacation bonus, or profit-sharing requirement in the Labour Code.

Cost of Hiring Through an EOR in Uzbekistan

EOR Service Fees

Employer-of-record providers in Uzbekistan charge either a flat monthly fee per employee (typically USD 300 to USD 600 depending on the provider, salary band and services) or a percentage of gross salary (usually 10% to 15%). The fee covers local employment on the EOR’s Uzbek entity, payroll processing, PIT and social tax remittance, contract drafting, leave tracking, and standard HR support.

Add-ons such as work-permit sponsorship, expense reimbursement, or private medical insurance are typically billed at cost or a small mark-up. RemotePeople bills a flat USD fee per employee per month and breaks out any statutory contributions transparently on the invoice.

Total Employment Cost Breakdown

The table below models the monthly cost of hiring a mid-level employee in Uzbekistan on a USD 2,000 gross monthly salary through an EOR, using the 12% employer social tax and 0.1% INPS contribution, and a mid-range USD 500 EOR fee. The example assumes a standard private employer outside the textile or IT Park regimes; rates for those regimes are lower.

Uzbekistan employer cost example · USD 2,000 gross · 2026
Employer Cost
Amount (USD)
% of Gross
Gross monthly salary
$2,000.00
100.00%
Unified Social Tax (12%)
$240.00
12.00%
INPS employer contribution (0.1%)
$2.00
0.10%
EOR service fee (flat)
$500.00
25.00%
Total employer cost
$2,742.00
137.10%
PIT withheld from employee (12%)
–$240.00
–12.00%
INPS employee contribution (0.1%)
–$2.00
–0.10%
Employee net take-home
$1,758.00
87.90%

Figures converted at 1 USD ≈ 12,085 UZS, April 2026 (Central Bank of Uzbekistan reference rate).

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Benefits of Using an EOR in Uzbekistan

An employer of record in Uzbekistan converts what is traditionally a multi-month entity setup and a parallel immigration project into a single commercial agreement. It matters most when the team is small, time to first hire is short, or the employer is not fluent in the Uzbek and Russian bilingual contract requirements and the 2026 social insurance reforms. The key advantages fall into the categories below:

An EOR in Uzbekistan converts a multi-month compliance exercise into a two-week onboarding. Speed is the first advantage: an Uzbek national can be onboarded in 1–2 weeks versus 8–12 weeks to register a local LLC, open a bank account, and activate payroll with the State Tax Committee. For a foreign hire, the EOR compresses the work-permit track to 4–8 weeks.

Compliance and cost are the second layer. The EOR assumes liability for every provision of the 2023 Labour Code, the 2026 State Social Insurance law, and the Tax Code, and absorbs the cost of contract drafting, PIT and social tax filings, and inspection responses that would otherwise fall on the client. It also avoids the UZS 400 million charter capital and two-to-three-month incorporation process required to stand up a foreign-invested LLC.

Local knowledge is built in. The provider already has Uzbek contract templates, the IT Park 7.5% PIT route, the textile 1% social tax, and the bilingual contract standard mapped, so clients do not need to build their own in-country legal and HR capacity. Because the EOR is the legal employer, headcount can be added, terminated or relocated with statutory notice and severance handled centrally, and there is no dissolution procedure if the client decides to exit the market.

The EOR also removes immigration and employee-experience friction. It uses its existing Corporate Work License to sponsor E-Visas and IT-Visas for foreign hires without the client standing up its own Uzbek sponsor. Employees receive a local bilingual contract, UZS salary paid through a local bank, access to state social insurance benefits (including the new State Fund for Social Insurance allowances), and HR support in Russian or Uzbek as required.

For most small-to-mid-sized teams entering Uzbekistan, the EOR is the fastest and lowest-risk path to a compliant payroll. Companies expecting to exceed 15 Uzbek hires, to bid on government contracts, or to operate physical infrastructure may still want to evaluate a local entity in parallel, but the EOR often serves as the first-stage vehicle while the entity is being set up.

Termination and Offboarding in Uzbekistan

Notice Periods

Notice periods in Uzbekistan are set by the ground for termination rather than the tenure of the employee, under Chapter 11 of the 2023 Labour Code. All notices must be in writing; payment in lieu of notice is permitted by agreement. The statutory floor applies equally to open-ended and fixed-term contracts, and employer and employee notice periods are different: the employer must give more notice for a redundancy than an employee must give when resigning.

Uzbekistan statutory notice periods by position level · Per Labour Code of the Republic of Uzbekistan (2023)
Ground / Position Level
Notice Period
During Probation
Notes
Employee resignation (any tenure)
2 weeks (14 calendar days)
3 calendar days
Employee-initiated, written notice required
Employer – redundancy / liquidation / staff reduction
2 months
3 calendar days
Collective dismissal requires trade-union consultation
Employer – unsuitability or insufficient qualification
2 weeks
3 calendar days
Must be supported by attestation results
Employer – systematic violation of duties
3 calendar days
3 calendar days
Requires prior disciplinary sanction on file
Employer – gross single violation
Immediate (no notice)
Immediate
Limited grounds listed in Article 161 (theft, intoxication, safety breach)
Heads of organisation / executives
2 months (standard redundancy)
3 calendar days
6-month probation cap (Article 90)

Fixed-term contracts end on the stated expiry date and do not require notice beyond a short reminder, typically three working days. Mutual-consent terminations take effect on the date agreed and can shortcut the statutory notice periods, which is why many employers in Uzbekistan negotiate separation agreements for higher-seniority roles. Just-cause terminations still require the employer to prove the ground in writing and retain supporting documentation, or the employee can contest the dismissal in the labour court and seek reinstatement with back pay.

Severance Pay

Severance pay in Uzbekistan is mandatory in redundancy, staff-reduction and liquidation cases, and the amount is set by Article 173 of the Labour Code on a sliding scale by length of service with the same employer. Severance does not apply when the employee resigns voluntarily, is terminated for cause, or reaches the end of a fixed-term contract; collective agreements and individual contracts can raise the statutory floor but cannot reduce it. In addition to the severance payment itself, an employee dismissed for redundancy retains the average monthly wage for up to three months while seeking new employment, provided they register with the employment service within 10 working days.

Uzbekistan severance pay schedule by years of service · Per Labour Code of the Republic of Uzbekistan (2023)
Years of Service
Severance Amount
Base Salary
Notes
Up to 3 years (1 year example)
50% of average monthly salary
Average monthly wage, last 12 months
Minimum statutory floor
3 to 5 years (4 year example)
75% of average monthly salary
Average monthly wage, last 12 months
Applies to redundancy dismissal
5 to 10 years (7 year example)
100% of average monthly salary
Average monthly wage, last 12 months
Equivalent to one full month of pay
10 to 15 years (12 year example)
150% of average monthly salary
Average monthly wage, last 12 months
Paid on final day of employment
Over 15 years (20 year example)
200% of average monthly salary
Average monthly wage, last 12 months
Maximum statutory floor under Article 173

Calculation Method

The severance base salary is the employee’s average monthly wage over the 12 months preceding the termination, including regular salary, fixed allowances, and any recurring bonuses that form part of ordinary compensation. Irregular one-off bonuses and reimbursements are excluded.

The severance amount is calculated by multiplying the base by the percentage in the tier corresponding to the employee’s full completed years of service; fractional years round to the nearest full year. Worked examples are shown in the severance table above rather than repeated in prose.

Caps and Exceptions

Article 173 sets a floor (the statutory percentage) but does not impose a cap on severance, so collective agreements and individual contracts can raise the payment. Severance is not owed when the employee is dismissed for gross violation of duties, theft, intoxication at work, or other grounds listed in Article 161, or when the contract is terminated by mutual consent without a separation agreement.

Probationary employees dismissed for unsatisfactory performance during the probation period are also not entitled to severance. Fixed-term contracts ending naturally do not trigger severance unless the contract expressly provides otherwise.

Grounds for Termination

The Labour Code allows termination on several grounds: mutual consent, expiry of a fixed-term contract, employee resignation, employer-initiated dismissal (redundancy, unsuitability, systematic or gross violation), objective impossibility (military service, long-term illness, death, criminal conviction), and specific statutory grounds for senior executives. Protected categories (pregnant employees, employees on parental leave, single mothers with children under 14, employees on sick leave or annual leave) cannot be dismissed except in limited circumstances such as liquidation or gross violation. Every employer-initiated termination must be documented in an order, with reasons, supporting documents, and the trade-union opinion where applicable; failure to do so allows the employee to challenge the dismissal in court within one month.

EOR vs. Other Hiring Models in Uzbekistan

EOR vs. Setting Up a Local Entity

Setting up a local entity in Uzbekistan (typically a Limited Liability Company, or LLC) requires charter capital of at least UZS 400 million for foreign-invested enterprises, registration with the State Services Agency, and parallel tax, bank and social insurance setup. The entire process takes two to three months and carries recurring compliance costs.

The EOR model compresses this into one to two weeks with no charter capital, which is the main reason the EOR is attractive for small and early-stage teams. The table below summarises the trade-off.

Uzbekistan EOR vs local entity comparison · Setup time, cost, risk and best-fit
Comparison
Employer of Record
Own Entity (LLC)
Setup time
1–2 weeks
2–3 months
Upfront cost
$0
$8,000–$20,000 (charter capital, registration, legal)
Ongoing cost
$300–$600 / employee / month
$15,000–$30,000 / year (accounting, filings, office)
Local partner required
No (EOR is the local entity)
No; foreign ownership permitted
Social insurance registration
Handled by EOR
You manage it
Payroll & tax filing
Handled by EOR
You manage it (or outsource)
Best for team size
1–15 employees
15+ employees
Scale down / exit
Easy – no entity to unwind
Costly – legal liquidation required
Government contracts
Not eligible
Eligible (requires local entity)

The break-even point between the two models sits around 15 to 20 hires. Below that headcount, the EOR’s flat monthly fee per employee is lower than the fully loaded cost of a resident LLC once accounting, chief accountant salary, office lease and bank maintenance are included.

Above 20 hires, the LLC tends to be more economical, and the local entity also unlocks government tenders and regulated-sector licences that an EOR cannot sponsor. For most private-sector market-entry plays in Uzbekistan, the EOR acts as the bridge for the first 12 to 24 months while the client decides whether to invest in a subsidiary.

EOR vs. Hiring Independent Contractors

Hiring in Uzbekistan through a civil-law services agreement (a contractor arrangement) is legal, but carries real misclassification risk. The State Tax Committee and the Labour Inspectorate apply a substance-over-form test: if the relationship resembles employment (fixed working hours, integration into the team, dependency on a single client), the authorities can reclassify the contract and demand back PIT, social tax and penalties. The table below compares the two options.

Uzbekistan EOR vs independent contractors · Compliance, cost, and risk
Comparison
EOR (Full-Time Employee)
Independent Contractor
Legal relationship
Employee of the EOR
Self-employed, no employment relationship
Compliance risk
Low – EOR ensures Labour Code compliance
High – misclassification exposes client to back taxes and penalties
Payroll & tax
EOR handles PIT withholding, social tax, filings
Contractor invoices you; files own taxes
Benefits & leave
Statutory leave, maternity, pension, allowances
No entitlement to employee benefits
IP protection
Stronger – employment contract assigns IP by default
Weaker – requires explicit IP assignment clause
Termination
Subject to statutory notice and severance
Contract can end per agreement terms
Best for
Long-term, core team roles
Short-term projects, specialised tasks
Cost structure
Salary + employer contributions + EOR fee
Contractor fee (higher gross, lower total cost)

The safest contractor setup in Uzbekistan uses the Samozanyatiy (self-employed) regime, where the individual registers as a self-employed taxpayer and pays a fixed monthly tax. The arrangement works well for genuinely independent work, such as consulting or short creative projects, but breaks down as soon as the contractor works full-time for a single client. For any long-term role, the EOR is the more defensible structure.

EOR vs. PEO (Professional Employer Organization)

Uzbekistan does not have a formal statutory PEO framework in the US co-employment sense, but some local providers market PEO-style services to companies that already have a local entity, handling HR, payroll and compliance on an outsourced basis. The critical distinction from an EOR is that the PEO does not become the legal employer, so the client must already own an Uzbek entity with a Unified Social Tax account and a contract with the State Tax Committee.

Uzbekistan EOR vs PEO comparison · Legal employer, liability, and setup
Comparison
Employer of Record (EOR)
PEO
Legal employer
EOR is the legal employer
Client remains the legal employer (co-employment)
Local entity required
No – EOR is the local entity
Yes – client must have own entity in Uzbekistan
Best for
Companies without a local entity
Companies that already have a local entity
Compliance liability
EOR assumes compliance responsibility
Shared liability between client and PEO
Setup time
1–2 weeks
Depends on entity setup (weeks to months)
Control over HR policies
EOR manages within Uzbek labour-code framework
More direct control; PEO advises
Typical use case
Market entry, small remote teams, testing Uzbekistan
Established local operations needing HR outsourcing

In practice, most foreign companies entering Uzbekistan for the first time do not already have a local entity, so the EOR is the default choice. The PEO conversation becomes relevant once the client has an LLC up and running, typically at 15 to 20 hires, and wants to outsource the payroll administration while retaining direct employment.

Public Holidays in Uzbekistan

Uzbekistan observes nine statutory public holidays in 2026, plus several presidentially announced bridge days that turn the Navruz, Women’s Day, Remembrance Day and Eid holidays into three-to-four-day breaks. Religious holidays (Ramazon Hayit, Kurbon Hayit) follow the lunar calendar, so their dates shift each year. Employees who work on a public holiday are paid at 200% of regular pay under the overtime rules summarised in Table 10.

Uzbekistan public holidays · 2026 calendar year
Date
Holiday
Type
1 January (Thu)
New Year’s Day
Public holiday
2 January (Fri)
New Year Holiday (bridge day)
Additional day off
8 March (Sun)
International Women’s Day
Public holiday
9 March (Mon)
Day off for International Women’s Day
Additional day off
20 March (Fri)
Ramazon Hayit (Eid al-Fitr)
Public holiday (lunar)
21 March (Sat)
Navruz
Public holiday
23 March (Mon)
Day off for Navruz
Additional day off
9 May (Sat)
Day of Remembrance and Honour
Public holiday
11 May (Mon)
Day off for Day of Remembrance and Honour
Additional day off
27 May (Wed)
Kurbon Hayit (Eid al-Adha)
Public holiday (lunar)
28 May (Thu)
Day off for Kurbon Hayit
Additional day off
29 May (Fri)
Day off for Kurbon Hayit
Additional day off
31 August (Mon)
Independence Day Holiday
Additional day off
1 September (Tue)
Independence Day
Public holiday
1 October (Thu)
Teachers’ and Instructors’ Day
Public holiday
8 December (Tue)
Constitution Day
Public holiday
31 December (Thu)
New Year Holiday (eve)
Additional day off

When a public holiday falls on a weekend, the government typically moves the day off to the following Monday through a Presidential Decree issued in December for the upcoming year. The 2026 schedule groups the Navruz (21 March, Saturday) and Ramazon Hayit (20 March) cluster into a four-day break from 20 to 23 March, and the Kurbon Hayit cluster into a four-day break from 27 to 30 May. Employers should budget around 17 non-working days in 2026 when planning payroll, coverage schedules and project deadlines.

How to Get Started with an EOR in Uzbekistan

Hiring in Uzbekistan through an employer of record follows a repeatable sequence. Each step below assumes the EOR is already registered in Uzbekistan with an active Corporate Work License; if not, the timeline shifts by two to four weeks.

Hiring in Uzbekistan through an employer of record follows a repeatable sequence. Each step below assumes the EOR is already registered in Uzbekistan with an active Corporate Work License; if not, the timeline shifts by two to four weeks.

First, define the role and package. Confirm job title, duties, gross salary in UZS or USD, start date, probation length, benefits, and whether work-permit sponsorship is required, since the EOR uses this to price the engagement and draft the compliant bilingual contract. Second, sign the EOR services agreement covering scope, pricing, SLAs, data protection and termination, a step that typically takes one to three business days.

Third, collect employee documents. The employee provides passport or Uzbek ID, tax identification number (INN), bank details, diplomas and, for foreign hires, apostilled qualifications and medical and police clearance certificates.

Fourth, the EOR signs the bilingual employment contract, registers the hire with the State Tax Committee, the State Fund for Social Insurance and the my.mehnat portal, and sets up payroll. For foreign hires, this is the stage at which the Corporate Work License, Confirmation and E-Visa applications are filed.

Fifth, go live with payroll and compliance. First payroll runs on the agreed date, PIT and social tax are remitted monthly, leave is registered in my.mehnat, and the EOR delivers monthly payroll and compliance reports. From here, any scale-up, termination or permit renewal is handled by the EOR inside the existing services agreement.

Ready to move? Contact RemotePeople to scope your Uzbekistan hiring plan, verify the right visa or IT Park route, and get a compliant employment offer in front of your candidate inside two weeks.

Where companies hiring in Uzbekistan expand next

Teams building a presence in Uzbekistan often extend across the Caucasus and Central Asia, where Russian-language coordination and cross-border trade corridors remain strong. Teams frequently add operations in Kazakhstan for overlapping Central Asian talent profiles; Georgia often follows for Central Asian cost parity and tech talent; hiring in Armenia is a common next step, offering aligned Central Asian labor frameworks; and an EOR partner in Azerbaijan rounds out the regional footprint with shared Central Asian hiring dynamics.

Frequently Asked Questions

Expect USD 300 to USD 600 per employee per month on a flat-fee model, or 10–15% of gross salary on a percentage model. On top of that, the employer funds the 12% Unified Social Tax and 0.1% INPS contribution (PwC Worldwide Tax Summaries: Uzbekistan), and the employee pays 12% PIT and 0.1% INPS withheld at source. For a USD 2,000 monthly gross salary, the total employer cost through an EOR is around USD 2,742, of which USD 500 is the EOR fee and USD 242 is social insurance.

One to two weeks for an Uzbek national, four to eight weeks for a CIS citizen, and eight to twelve weeks for a non-CIS foreign hire because of the Corporate Work License, Confirmation and E-Visa sequence (Republic of Uzbekistan E-Visa portal). IT Park residents can compress the foreign-hire path to two to three weeks via the one-stop shop (Uzbekistan IT Park). An EOR with an active Corporate Work License removes the 4–6 week permit stand-up that clients without one would otherwise face.

No. The Labour Code does not require a 13th-month salary (Labour Code of the Republic of Uzbekistan (LEX.UZ)), and no 14th month or vacation bonus is statutory either. Annual bonuses are discretionary and governed by the employment contract or internal bonus policy. Some sectors such as banking, oil and gas, and large IT employers pay a de-facto December bonus by custom, but this remains a contractual benefit rather than a legal entitlement.

UZS 1,271,000 per month (approximately USD 105 at April 2026 exchange rates), effective since 1 August 2025 under Presidential Decree UP-97 (PwC Worldwide Tax Summaries: Uzbekistan). The minimum applies to a standard 40-hour week and is the gross amount before PIT and INPS are withheld. For detail on sector differentials and the 40-hour working week rules, see our Uzbekistan minimum wage guide.

Yes. An EOR that already holds a Corporate Work License sponsors the Confirmation for the specific employee and the corresponding E-Visa or IT-Visa (Republic of Uzbekistan E-Visa portal). The client provides the candidate's documents while the EOR manages every interaction with the Ministry of Employment and Labour Relations and the State Services Agency. Expect eight to twelve weeks for a first-time non-CIS hire, or two to three weeks through the IT Park one-stop shop for technology roles.

Yes, under a civil-law services agreement, and in particular through the Samozanyatiy self-employment regime for individuals (EY Uzbekistan Tax Updates 2026). The risk is misclassification: if the relationship resembles employment (fixed hours, integration, single-client dependency), the State Tax Committee can reclassify and demand back PIT, social tax and penalties. For any long-term or full-time role an EOR is safer, and RemotePeople also offers a contractor management solution that handles compliant onboarding, payments and classification reviews so you stay on the right side of the State Tax Committee.

From 1 January 2026 maternity pay is funded by the new State Fund for Social Insurance at 100% of average earnings for 126 days (156 days for complicated or multiple births). From 1 July 2026 the employer funds only the first five days of each sick-leave episode, and from day six onwards the State Fund pays (EY Uzbekistan Legislative Updates December 2025 – January 2026). An EOR files the claims and reconciles payments with the State Fund so the client sees a clean monthly payroll.

The IT Park is a special regime for technology companies that grants tax incentives until 2040, including a 7.5% personal income tax for staff (versus the standard 12%), a 0% employer social tax rate, and a fast-track IT-Visa via a one-stop shop (Uzbekistan IT Park). An EOR registered in the IT Park can onboard foreign tech talent in two to three weeks. Eligibility requires the employer to be an IT Park resident and the activity to fall within the approved software, IT services, or outsourcing categories.