Definitive Guide to Hiring in Kyrgyzstan

Hiring in Kyrgyzstan

Hiring employees compliantly in Kyrgyzstan means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Kyrgyzstan so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Kyrgyzstan; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Kyrgyzstan

Employment laws in Kyrgyzstan are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Kyrgyzstan employment laws and Kyrgyzstan policies here.

Employee Probation Period

• Probationary periods are limited to 3 months, or for managers and similar positions, 6 months.

Annual Leave in Kyrgyzstan

• Employees are generally entitled to 28 calendar days of annual leave.

Holidays in Kyrgyzstan

Maternity Leave Kyrgyzstan

• Female employees are entitled to 126 calendar days of maternity leave, 70 days to be used before the birth and 56 calendar days after the birth.
• Women are paid through the state social insurance.
• Employees may also be eligible for unpaid maternity leave until the child reaches 18 months of age, and this can be increased by an additional 18 months.

Paternity Leave Kyrgyzstan

• The Labor code does not specifically mention paternity leave
• However, the guarantees and incentives that the Labor Code provided for also cover single fathers who bring up motherless children and custodians of minors

Sick Leave in Kyrgyzstan

• There is no statutory sick leave

Working Hours in Kyrgyzstan

• In general, the work week is 40 hours: 5, 8-hour days.

Overtime in Kyrgyzstan

• Overtime must be paid at least time and half of the worker's normal pay for the first two hours and double time thereafter.
• Holiday and weekend work must be paid at least double time the worker's normal pay rate.

Termination of Employment in Kyrgyzstan

• If the employee’s performance on probation is not satisfactory, the employer may terminate the employment contract by giving at least 3 days’ prior written notice to the employee stating the reasons for considering the employee to have failed to satisfactorily complete the probationary period.
• Employees holding indefinite term contracts may be terminated based on the grounds stated in the labor code.
• Employees are generally entitled to a severance payment, the amount of which is dependent on the reason for termination.

Notice Period in Kyrgyzstan

• If the employee’s performance on probation is not satisfactory, the employer may terminate the employment contract by giving at least 3 days’ prior written notice to the employee stating the reasons for considering the employee to have failed to satisfactorily complete the probationary period.
• The employee has the right to terminate an indefinite term or fixed term employment contract by giving two weeks (14 calendar days) written notice to the employer.

Severance in Kyrgyzstan

• Employees are generally entitled to a severance payment, the amount of which is dependent on the reason for termination.
• In the event of termination of the employment contract, a severance pay of not less than two average monthly wages shall be paid.

Kyrgyzstan Salary and Wages

13 / 14th Month Salary in Kyrgyzstan

• No
• There is no statutory requirement to pay the 13th or the 14th month salary.
• There is no evidence that bonuses are customary.

• Taxpayers of social insurance contributions are legal entities (employers’), farms, and individuals.
• Generally, the base for calculation includes the gross remuneration of local and foreign personnel.
• In accordance with the Instruction ‘On Statutory Social Insurance Contributions’, the current rates are as follows:

Employer

• Social contributions: 2.25% (2% to the fund of obligatory social security, 0.25% to the employees’ health fund).
• Pension contributions: 15% (3% in respect of foreigners temporary residing in Kyrgyzstan).

Immigration Kyrgyzstan

• Most foreign employees will need a work visa as well as a work permit to enter and work in the Kyrgyz Republic.
• The required documents differ by visa type, the employee’s nationality, and more, but some of the common requirements include:
  • A completed visa application form
  • A passport
  • One passport-size color photo
  • A letter from you inviting the individual to the Kyrgyz Republic Payment of the visa fees
• The State Migration Service issues two types of work permits — those authorizing the hiring and employment of foreigners (an Employment Permit) and those authorizing foreigners or stateless persons to work in the country (an Employee Permit).
• Keep in mind that the government has annual quotas for hiring foreign and stateless employees, and those quotas vary by industry and region.
• The government approves these numbers annually, so they often change year to year.
• The majority of work permits in the Kyrgyz Republic are valid for one year with the possibility of an extension.

Value Added Tax (VAT) in Kyrgyzstan

• In Kyrgyzstan, VAT is assessed on taxable supply and taxable imports.
• The VAT rate is 12%, except for certain zero-rated supplies and certain exempt turnover.

Mandatory Benefits in Kyrgyzstan

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, severance pay and 13th month pay
• Mandatory benefits also include social security benefits.

Payroll Accrual in Kyrgyzstan

Payroll Accruals Additional Information

Accrued Benefits in Kyrgyzstan

Why use Global Expansion to hire in Kyrgyzstan

Establishing a branch office or subsidiary in Kyrgyzstan can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Kyrgyzstan labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Kyrgyzstan law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Kyrgyzstan. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Kyrgyzstan Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.