Payroll & Employment Guide Kazakhstan

permanent, fixed-term, temporary, seasonal, part-time, and dual employment contracts, depending on the nature of the job. All contracts must be in written form, as oral agreements aren't legally valid. Recent laws also allow electronic contracts with recognised digital signatures.

Notice periods: One month

Termination of employment: It can occur under several circumstances, such as mutual agreement, expiration of a fixed-term contract, or valid reasons related to the employee’s performance or behaviour.

Kazakhstan’s labour laws require employers to provide a range of mandatory employee benefits designed to ensure social protection and fair working conditions. These include compulsory social insurance contributions, paid annual leave, sick leave, maternity leave, and coverage for public holidays.

• Mandatory benefits: Mandatory Pension Contributions (MPC), Social Contributions (SC), Mandatory Social Health Insurance Contributions (MSHI), Individual Income Tax (IIT) withholding
• Common perks: Medical insurance
• Leave policies: Annual leave, sick leave, maternity leave, childcare leave

Kazakhstan has a tax system that applies to both individuals and businesses, with recent reforms aimed at improving fairness and clarity. Employers are responsible for withholding personal income tax and making social tax contributions on gross income.

Personal income tax rate: 10%

VAT: 12%

In Kazakhstan, employers are required to pay salaries in accordance with individual or collective employment contracts, and the salary must be at least equal to the national minimum wage.

Salary payment deadline: Within the first ten days of the following month

Taxes and contributions payment deadline: On a monthly basis

Payroll declarations deadline: No specific payroll declarations or additional costs

Payroll currency: KZT

Kazakhstan’s Labour Code sets clear rules for labour relations, protecting workers' rights and outlining employers' responsibilities. It supports freedom of contracting, allowing both parties to define employment terms, provided they follow the limits set by labour laws.

Total employment cost:

• Social tax: 10% of the gross salary (less social contributions and employee medical contributions).
• Social contributions: 3.5% of the gross salary.
• Medical contributions: 3% of the gross salary, capped at KZT 25,500.
• Pension contributions: 10% of the gross salary, capped at KZT 425,000 annually.

Minimum wage: KZT 85,000 per month

Probation period: 3 months, but can be extended to 6 months for C-level positions.

By partnering with an EOR provider like Native Teams, you can hire employees legally in Kazakhstan without establishing a local legal entity. We act as the legal employer while you oversee the daily management of your employees. Our core responsibilities include:

• Legal employment and contracts
• Payroll processing
• Tax withholding
• Benefits administration
• Onboarding/offboarding employees

A PEO service is a perfect solution if you’re just looking to offload the administrative tasks that come with global hiring. For example, you have already established a legal entity in Kazakhstan, but need help managing the following duties:

• HR support and workforce administration
• Payroll and benefits management
• Compliance and local labour law guidance
• Employment contracts assistance

Looking for a tool to help you quickly estimate social security contributions, taxes and all obligations as an employer? Look no further than our payroll calculator! Simply enter your gross salary, search for Kazakhstan in the search bar, and your detailed report will be ready in seconds.