Kazakhstan Employer of Record

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Kazakhstan, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Kazakhstan―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Kazakhstan and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

A new labor code came into effect in 2016 introducing several changes to the previous statute. In general, Kazakh law is built on Soviet principles of regulation of employment and has an employee-protective approach.

The labor code requires a written formal employment agreement to be executed between the employer and the employee.

As you look to hire employees in Kazakhstan, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

A standard workweek in Kazakhstan is 40 hours and usually consists of five eight-hour workdays, although the week may also consist of six working days.

Employees are entitled to a daily work break of at least an hour, a break between working days of at least 12 hours, and at least one day off each week. Sunday is the default day, but another day can be substituted when business circumstances require.

Hours worked over eight per day and 40 per week are considered overtime. The Labor Code limits overtime to two hours per day (one hour for work in hazardous conditions), 12 hours per week, and 120 hours per year.

As you consider the appropriate salary to offer new employees, keep in mind:

As your employer of record in Kazakhstan, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses are not mandatory and are usually paid at the employer's discretion.

A probationary period of three months is allowed for all employees.

The probation can be extended to six months for company executives and their deputies, chief accountants and their deputies, and branch and office managers.

The concept of “at-will” employment does not exist in Kazakhstan. However, national labor law includes an exhaustive list of reasons for dismissal of employees, including expiration of an employment contract, termination of a contract by agreement of the parties, and revocation of a work permit.

The employer must give an employee it intends to terminate at least one month’s notice. An employment contract or collective bargaining agreement may require longer notice.

An employee is required to give 30 days' notice of termination unless the parties agree otherwise. If the employer breaches the terms of the employment agreement, the employee may give notice of default and, if the breach is not rectified within seven days, terminate employment with three days’ notice.

Termination compensation must be paid within three business days. Employers must compensate employees for any unused annual leave. Employers also must compensate employees with one month of wages upon termination in the case of liquidation or downsizing.

An employment agreement may grant the employer the right to dismiss an employee without cause, however, provided the employee is paid severance equal to at least his or her annual average salary, and the right of dismissal without cause is explicitly stated in the agreement.

If the performance of a probationary employee is unsatisfactory, the employee can be dismissed within the final seven days of probation.

When negotiating terms of an employment contract with a candidate in Kazakhstan, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Female employees are provided paid maternity leave of 70 calendar days before and 56 calendar days after childbirth. Employees who adopt a newborn are also entitled to 56 days of paid leave. In cases of complicated childbirth or the birth of two or more children, the maternity leave is extended to 70 calendar days after childbirth.

In addition, the mother or father can take unpaid childcare leave until the child reaches age 3.

Maternity leave is paid for by the employer.

Employees are entitled to at least 24 calendar days of paid leave each calendar year, two weeks of which must be consecutive.

An employment or collective bargaining agreement may provide a more generous benefit. Disabled persons and employees living in certain regions of the country or working under hazardous conditions must be provided additional leave.

Unused annual leave may be carried over to the next year only in cases of temporary disability, maternity, or civic duty.

Employees are entitled to the following paid public holidays:

At the request of an employee, a day off may be given instead of extra pay for work on holidays. If a holiday falls on a weekend, it is observed on the following Monday.

Employers are responsible for the payment of employee sick benefits. Benefits are based on the employee’s average monthly wages.

Under the mandatory individual retirement account system, the legal retirement age is 63 for men, 58 for women, and a retiree must have made 35 years of contributions to qualify for a full pension.

Foreign workers have equal rights with Kazakh nationals to receive social security payments and must be included in social security plans. Employers must keep documents confirming payments of the applicable mandatory social levies and submit these documents to the state archives.

Employees contribute 10% of monthly wages to their accounts. Employees with at least six months’ service before January 1, 1998, may also qualify for an employer-funded “solidarity pension.” Employer contributions are 11% of payroll, and employee eligibility begins at age 63 for men with at least 25 years of contributions, 58 for women with at least 20 years of contributions.

In addition to healthcare benefits, employees in Kazakhstan are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Kazakhstan, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: February 12, 2024

We write and validate all local employment contracts, streamlining the onboarding process for you and your Kazakhstan employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Kazakhstan, we will:

The entire onboarding process for the employee is often completed in as little as two weeks.

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Kazakhstan. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.