Payroll & Employment Guide Kyrgyzstan

Employment contracts in Kyrgyzstan are legally binding agreements between employers and employees. They formalise the working relationship and must be in a written form, outlining specific details about the job, salary, working hours, termination policies, and other essential terms.

Notice periods: From 2 weeks to 1 month.

Termination of employment: Termination by mutual agreement, upon the expiry of a fixed-term contract, at the initiative of the employee or employer, or due to circumstances beyond the control of the parties.

Employers who hire in Kyrgyzstan must provide mandatory employment benefits in compliance with the country’s labour laws. Many of them also offer extra benefits to stay competitive in the job market. Understanding both of them is essential to attracting and retaining talent.

• Mandatory benefits: Health insurance, pension contributions, unemployment benefits.
• Common perks: Meal vouchers, transport reimbursements.
• Leave policies: Paid annual leave, sick leave, maternity leave.

Want a full breakdown of all the employee benefits available in Kyrgyzstan?

Kyrgyzstan has a defined tax system that employers must comply with when hiring locally. Employers must withhold personal income taxes and make mandatory social security contributions on behalf of their employees. Additional tax regulations may apply to corporate income, VAT, and other income types.

Personal income tax rate: 10%

VAT: 12%

Salaries in Kyrgyzstan are calculated based on the actual working days in a month, excluding weekends and public holidays. Employees receive 12 monthly salaries per year, regardless of the number of working days in a particular month.

Salary payment deadline: The last working day of the month.

Taxes and contributions payment deadline: By the middle of the following month.

Payroll declarations deadline: By the middle of the following month.

Payroll currency: KGS

Labour laws in Kyrgyzstan are primarily regulated by the Labour Code, which governs the rights and duties of both employees and employers. It covers key aspects of the working relationship, including minimum wages, working hours, employment benefits, termination procedures, and others.

Total employment cost:

• Employer’s insurance contributions: 2.25%

Minimum wage: 2,863 KGS.

Probation period: Up to 3 months.

EOR services allow you to legally employ individuals in Kyrgyzstan without opening legal entities there. Your EOR partner will take over the responsibility of the legal employer, including:

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

PEO services provide HR and administrative support while you’re the legal employer for your employees in Kyrgyzstan. They’re ideal for employers who already have legal entities in the country but need help with their employee operations, including:

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

Native Teams provides payroll calculators that are adapted to the local labour laws of 85+ countries, including Kyrgyzstan. With our calculators, you can easily determine net/gross salaries, social contributions, and other mandatory deductions in the country.