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Hiring in Uzbekistan

Hiring employees compliantly in Uzbekistan means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Uzbekistan 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 Uzbekistan; or

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

Need assistance hiring in Uzbekistan? Contact us about our International EOR Service

Labor Laws in Uzbekistan

Employee Probation Period

  • The probation period is of 3 months.

Annual Leave in Uzbekistan

  • Every employee is entitled to 15 days of paid annual leave
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Holidays in Uzbekistan

New Year’s Day
New Year's Day (in lieu)
New Year's Day (in lieu)
International Women's Day
Nowruz
Nowruz Holiday
Ramadan Khait
Ramadan Khait Holiday
Memorial Day
Children's day
Kurban Khait
Kurban Khait (in lieu)
Kurban Khait (in lieu)
Independence Day of Uzbekistan
Independence Day of Uzbekistan Holiday
Teachers' Day
Constitution Day

 

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Maternity Leave Uzbekistan

  • Female employees are entitled to 126 calendar days (70 days before and 56 days after childbirth).
  • Post natal leave is extended to 70 days in case of multiple births

Paternity Leave Uzbekistan

  • There is no paternity leave
  • The entitlement to maternity leave also covers a father or tutor, grandmother, grandfather or other relatives who actually takes care of the child, in cases when the mother’s care for the child is absent (for example in case of death or long stay in a medical establishment).

Sick Leave in Uzbekistan

  • An employer is not obliged to pay for an employee’s leave of absence due to temporary illness or disability.
  • The employee is paid from the State Social Insurance Fund in amounts varying from 75% to 100% of the employee’s wage.

Working Hours in Uzbekistan

  • The legal duration of work is 40 hours per week.

Overtime in Uzbekistan

  • Overtime hours should be less than 4 hours for every 2 days or 120 hours per year.
  • They are paid double the hourly salary.

Termination of Employment in Uzbekistan

Employers can unilaterally terminate employment contract on the following grounds:

  • Change in technological, production or work process, decrease in volume of work, which have led to changes in the number of staff (redundancy), character of work or liquidation of company;
  • Incompatibility of an employee due to low qualification (with sufficient evidence) or illness (that prohibits employee to perform duties);
  • Systematic breach of duties by an employee;
  • A significant breach of professional duties that are stipulated in employer’s policies;
  • Termination of part-time employees if the employer hires a full-time employee for this position;
  • Termination of a head of company, his deputy and chief accountant due to change of owner;
  • Reaching pension age provided that an employee has acquired the right to receive state pension (pensioner’s certificate).

Notice Period in Uzbekistan

  • Employer must provide two-month notice if the termination is connected with changes in technology, organization of production and labor, reduction of volume of work involving changes in staff or in the nature of work or liquidation of company.

Severance in Uzbekistan

  • Severance payments are provided in legislation, but in very limited cases.
  • When the employer terminates the contract on the grounds of changes in technology, organization of production and labor, reduction of volume of work involving changes in staff or in the nature of work or liquidation of company, the employer and employee may agree that the Two-month notice period may be substituted by an average salary for two months with immediate termination.

Uzbekistan Salary and Wages

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13th / 14th Month Salary in Uzbekistan

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • Employees are entitled 15 days paid holiday.
  • There is no evidence that bonuses are customary.
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Income Tax in Uzbekistan

  • Individuals are subject to tax in Uzbekistan based on their tax residency status.
  • A resident is defined as an individual who is physically present in Uzbekistan for 183 days or more in any period up to 12 months ending in a calendar year.
  • Individuals not meeting this test are considered to be nonresidents.
  • Residents are taxed on their worldwide income.
  • Nonresidents are taxed only on their Uzbek-source income.
  • The general Uzbek individual income tax for residents is levied at a flat rate of 12%, while a flat rate of 20% applies to nonresidents.
  • There are no local personal income taxes in Uzbekistan.
  • The PIT rate charged on Uzbek-sourced income of non-residents (except for dividends, interest, and income from freight) was reduced from 20% to 12% by virtue of Presidential Resolution (yet to be included into the Tax Code to become effective).
  • For the period from 1 April 2022 to 31 December 2024, income of individuals (both residents and non-residents of the Republic of Uzbekistan) in the form of dividends from shares in joint stock companies is exempt from PIT (yet to be included into the Tax Code to become effective).

Income Tax Rate
Residents

Employment Income: [Flat Rate of 12%]

Dividends and Interest [5%]
Non-residents

Employment Income [Flat Rate of 12%]

Dividends and Interest [10%]

 
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Social Security in Uzbekistan

  • Employers make mandatory monthly contributions to individual accumulative pension accounts of citizens at a rate of 0.1% of salaries of employees, and the amounts of such contributions are subtracted from accrued individual income tax.
  • Employers are subject to a unified social fund contribution on the payroll of employees at a rate of 12% (while a 25% rate is applicable for state entities and entities with a state share in their capital of 50% or more).

Contribution

Group 1083

Individual Pension Accounts

Unified Social Fund
Employee Group 1083 - -
Employer Group 1083 0.1% 12%
  • Social Tax (ST) is charged on gross payroll of local and foreign employees and payable by the employers.
  • The rates of ST are provided below:

Taxpayers

Tax rate (%)
Budget organizations 25%
Association of 'SOS Children’s Villages of Uzbekistan' 7%
Taxpayers using the labor of persons with disabilities working in specialized workshops, sections, and enterprises 4.7%
Other taxpayers 12%

Immigration Uzbekistan

  • In general, all foreign nationals and stateless persons are required to obtain a visa to enter Uzbekistan.
  • A foreign citizen may work in Uzbekistan only if he or she obtains through his or her Uzbek employer a confirmation for the employment (work permit) and if his or her Uzbek employer obtains a license for employment of foreign specialists (license).
  • The Consular Department of the Ministry of Foreign Affairs of Uzbekistan issues a work visa to a foreign citizen only if the foreign citizen and his or her Uzbek employer obtained the work permit and license.
  • Uzbek law does not contain any measures allowing a foreign citizen to be self-employed in Uzbekistan.
  • In general, to obtain a business visa to Uzbekistan, a visa applicant should submit the following documents to the relevant consular office of Uzbekistan:
    • Invitation letter from the hosting organization (for example, a business partner or an Uzbek company) that is duly processed through the Ministry of Foreign Affairs of Uzbekistan in Tashkent (this requirement does not apply to the nationals of those countries for which Uzbekistan has a simplified procedure for issuing visas)
    • Two copies of the completed and signed visa application form
    • Valid passport or document of a stateless person
    • Two passport-size pictures
    • Proof of visa fee payment unless a visa fee exemption has been established by an intergovernmental agreement between Uzbekistan and the respective foreign country, and/or Uzbekistan legislation
  • Starting from 1 March 2019, for founders (participants) of enterprises with foreign investments and for members of their families, the investment visa is introduced.
  • It is valid for a period of three years, with the possibility of extension without leaving Uzbekistan.
Need assistance hiring in Uzbekistan? Contact us about our International EOR Service

Type of Visa/Permit

Documentation

Validity

Eligibility

Business Visa
  • Invitation letter from the hosting organization (for example, a business partner or an Uzbek company) that is duly processed through the Ministry of Foreign Affairs of Uzbekistan in Tashkent (this requirement does not apply to the nationals of those countries for which Uzbekistan has a simplified procedure for issuing visas) 
  • Two copies of the completed and signed visa application form 
  • Valid passport or document of a stateless person 
  • Two passport-size pictures 
  • Proof of visa fee payment unless a visa fee exemption has been established by an intergovernmental agreement between Uzbekistan and the respective foreign country, and/or Uzbekistan legislation

1 year

Foreign individuals travelling to Uzbekistan for business related purposes are eligible

Work Permit
  • Copy of Passport
  • 2x Passport Photographs
  • Profile of Applicant
  • Proof of Work History
  • Valid Passport
  • Visa Application Form
  • Lease contract for residence in host country
  • Proof of Temporary Accommodation
  • HIV Test Results

1 year (can be extended)
  • A foreign citizen may work in Uzbekistan only if he or she obtains through his or her Uzbek employer a confirmation for the employment (work permit) and if his or her Uzbek employer obtains a license for employment of foreign specialists (license). 

Investor Visa
  • Invitation letter from the hosting organization (for example, a business partner or an Uzbek company) that is duly processed through the Ministry of Foreign Affairs of Uzbekistan in Tashkent (this requirement does not apply to the nationals of those countries for which Uzbekistan has a simplified procedure for issuing visas) 
  • Two copies of the completed and signed visa application form 
  • Valid passport or document of a stateless person 
  • Two passport-size pictures 
  • Proof of visa fee payment unless a visa fee exemption has been established by an intergovernmental agreement between Uzbekistan and the respective foreign country, and/or Uzbekistan legislation

3 years
  • Starting from 1 March 2019, for founders (participants) of enterprises with foreign investments and for members of their families, the investment visa is introduced.
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Value Added Tax (VAT) in Uzbekistan

  • The standard value-added tax (VAT) rate was 15%.
  • There is a reduction in the VAT rate from 15% to 12% with effect from 1 January 2023
  • This tax is applicable to the sales value of products, works, and services.
  • Exports of goods are taxed at 0%.

VAT

Standard Rate

Group 1083

12%
Zero Rate Group 1083 0%
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Mandatory Benefits in Uzbekistan

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

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Sick Leave

  • Overtime Pay

  • Notice period

  • Severance Pay

  • Social Security Benefits

Payments And Invoicing

  • The tax period for PIT purposes is the calendar year.
  • A tax return is to be filed by Uzbek residents if/once they earn:
    • property income, including income from intellectual property rights
    • income from two or more sources
    • income received from sources outside of Uzbekistan, or
    • income received from sources who are not tax agents.
  • The declaration should be submitted by the individual to the tax authorities at the location of the individual's registration in Uzbekistan not later than 1 April of the year following the reporting year.
  • A tax return is not due in cases where the taxpayer’s income from non-principal (second) place of work was taxed at the maximum rate based on one's written application.
  • If a foreign national becomes a tax resident in Uzbekistan prior to 1 April of the current reporting year, one should submit a declaration on the income earned during the previous reporting year.
  • For instance, if an expatriate has not become tax resident in Uzbekistan as of 31 December 2019 but will become so by 1 April 2020, one would be required to file the annual PIT return for the calendar year 2019 (as a non-resident).
  • Expatriate individuals leaving Uzbekistan should file a ‘departure’ PIT return for the period from 1 January to the departure date one month in advance of the departure.
  • However, if the expatriate leaves Uzbekistan before 1 February, one is not required to file a tax return.
  • PIT liability as per the tax return should be settled by 1 June of the year following the reporting year.

Payroll Accrual in Uzbekistan

Country Accruals Additional Information

Social security 12.000%
maternity leave 126 days
Vacations 4.11%
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Description

ST is charged on gross payroll of local and foreign employees and payable by the employers.

Payroll Accruals Additional Information

      Employment Accruals
Annual Leave Every employee is entitled to 15 days of paid annual leave   This equals 4.1% (15/365 days) of annual income
Maternity Leave Female employees are entitled to 126 calendar days (70 days before and 56 days after childbirth).   This equals 34.5% (126/365 days) of annual income
Sick Leave When an employee becomes ill, suffers an injury, or cares for their sick family members, they should take sick leave.
That leave is paid at 100% of the employee’s average pay if the sickness is work-related or the employee has worked for more than eight years.		   Subjective
Overtime Overtime hours should be less than 4 hours for every 2 days or 120 hours per year.
They are paid double the hourly salary.		   Overtime is paid at an additional 8,250 UZS.
Severance When the employer terminates the contract on the grounds of changes in technology, organization of production and labor, reduction of volume of work involving changes in staff or in the nature of work or liquidation of company, the employer and employee may agree that the Two-month notice period may be substituted by an average salary for two months with immediate termination.   This equals 16.66% (2/12 months) of annual income
Social Security Employers make mandatory monthly contributions to individual accumulative pension accounts of citizens at a rate of 0.1% of salaries of employees, and the amounts of such contributions are subtracted from accrued individual income tax.
Employers are subject to a unified social fund contribution on the payroll of employees at a rate of 12% (while a 25% rate is applicable for state entities and entities with a state share in their capital of 50% or more).		   This equals 12%

Accrued Benefits in  Uzbekistan

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

Employees are entitled to severance pay equal to one month's pay after completion of one year of employment (8.33% of annual salary)

 8.33%
Vacations %

Every employee is entitled to 15 days of paid annual leave (4.28% of annual salary)

 4.28%
Of annual
salary
Notice %

Employees are entitled to 2 months of notice period for one year of service or more (16.66%)

 16.66%
Christmas Bonus Over Notifications % 0%
Vacations Plus %

It is based on 50% of the salary of the month

 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per annum

29.27%

Why use Global Expansion to hire in Uzbekistan

Establishing a branch office or subsidiary in Uzbekistan 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 Uzbekistanian labor laws are complex.

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

Global Expansion makes it easy for you to expand into Uzbekistan. 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 Uzbekistan 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.

 

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