What should I know about hiring in Kyrgyzstan?
If you want to grow your company or establish a presence in Kyrgyzstan, you must first understand the laws and employment practices of the country. There are a few things you should be aware of before hiring your new Kirghiz employee, even though some steps in the hiring process in Kyrgyzstan could be comparable to those in your country.
A written employment contract outlining the employee’s responsibilities, working conditions, pay, and benefits must be given to all new hires in Kyrgyzstan. The minimum wage, working hours, paid time off, and termination procedures should all be taken into account since they are governed by Kyrgyzstan’s labor regulations.
The biggest advantage of hiring new employees in Kyrgyzstan is the country’s large pool of skilled workers who offer competitive wages. However, it is important to note that Kyrgyzstan’s labor laws and regulations are still developing, and it is essential to always stay on top of any changes in labor policies.
Why is Kyrgyzstan a good choice for finding remote employees?
Kyrgyzstan can be a good choice for finding remote employees for many different reasons. The country has a large pool of skilled workers, many of whom are fluent in English and have experience working with global teams.
Hiring remote workers in Kyrgyzstan can also be cost-effective for companies because of the lower cost of living in the country. Businesses can therefore access high-quality talent at a lower cost than they might find in other countries.
Moreover, Kyrgyzstan’s time zone can be convenient for businesses in Europe and Asia, which makes communication and collaboration across countries easier.
Kyrgyzstan has also made significant investments in its telecommunications infrastructure in recent years. High-speed internet is widely available, which means that remote workers can stay connected with their clients and colleagues without any issues.
How can Native Teams help you hire in Kyrgyzstan
With Native Teams’ employer of record service, you can easily hire employees from abroad without establishing a separate local entity. Our legal experts will make sure your new employee will be hired according to all local employment laws and regulations.
Hire your first Kyrgyz employee with Native Teams.
Legal requirements for hiring in Kyrgyzstan
As of January 1, 2023, the minimum wage in Kyrgyzstan is set to KGS 2,337.00 per month.
Contributions & taxes
The employer tax rate in Kyrgyzstan depends on the type of tax and the income of the employee.
The social security contribution rate for employers is 17% of the employee’s gross salary, which is split into two parts: 10% goes to the pension fund and 7% goes to the social insurance fund.
The corporate income tax rate is currently set at a flat rate of 10%. This means businesses of all sizes are subject to this tax rate on their taxable income. The corporate income tax is calculated on the net profit of the company, which is determined by deducting the allowable business expenses from the total revenue.
The income tax rate for employees is progressive and ranges from 0% to 10%, depending on their salary. The tax-free threshold for employees is currently set at 15,000 KGS (about $175 USD) per month.
To calculate the salary and taxes in Kyrgyzstan please click here.
Salaries in Kyrgyzstan are usually paid out on a monthly basis, but they can also be paid out on a weekly or bi-weekly basis, depending on the employer’s preference and the terms of the employment contract.
Is there a 13th salary in Kyrgyzstan?
There are no legal requirements for a 13th salary in Kyrgyzstan, however, a lot of employers pay their employees a bonus at the end of the year which is usually equal to one month’s salary.
Probation period rules
Probationary periods in Kyrgyzstan are defined by the employment contract and can vary depending on the employer and the job position, but it usually lasts between 1 and 3 months.
The length of the notice period depends on the length of service and the position of the employee. Following Kyrgyz law, if the employee has worked for less than 6 months, the notice period is 2 weeks. If the employee has worked for more than 6 months but less than 2 years, the notice period is one month. If the employee has worked for more than 2 years, the notice period is 2 months. The notice period can also be longer if specified in the employment contract or collective agreement.
In Kyrgyzstan, severance pay is generally not required by law except in specific circumstances, such as the termination of a pregnant employee or a collective redundancy. However, if an employer decides to provide severance pay voluntarily, it should be specified in the employment contract or collective agreement.
The standard working hours are 40 hours per week, spread across five days (Monday – Friday). However, the law allows for some flexibility in working hours, depending on the industry and job position.
Additionally, employees may work overtime with the consent of the employer, but overtime should not exceed 4 hours per day and 120 hours per year. Overtime must be compensated at a higher rate than regular working hours, usually at a rate of 150% of the employee’s regular hourly rate.
Leave and benefits
There are 9 public holidays celebrated in Kyrgyzstan for which the employees should be given a day off:
- New Year’s Day – January 1st
- International Women’s Day – March 8th
- Nooruz (Persian New Year) – March 21st-22nd
- Labor Day – May 1st
- Victory Day – May 9th
- Constitution Day – May 5th
- Independence Day – August 31st
- Kurman Ait (Eid al-Adha) – varies based on the Islamic calendar
- Orozo Ait (Eid al-Fitr) – varies based on the Islamic calendar
Employees in Kyrgyzstan are entitled to paid sick leave if they are unable to work due to illness or injury. The duration of sick leave depends on the length of service and the severity of the illness or injury. The Kyrgyz Labour Code sets the following minimum sick leave entitlements:
- For employees with less than 5 years of service: up to 10 working days of sick leave per year
- For employees with 5-8 years of service: up to 14 working days of sick leave per year
- For employees with 8 or more years of service: up to 20 working days of sick leave per year
Employers may require employees to provide medical certificates or other documentation to verify the need for sick leave.
Female employees are entitled to paid maternity leave for up to 126 calendar days (18 weeks) before and after the birth of a child. During this period, they are entitled to receive a percentage of their average salary based on the length of service and the amount of social security contributions paid. The employer is responsible for paying the employee’s salary during this time and for ensuring that they are provided with appropriate working conditions upon their return.
Male employees are entitled to paternity leave for up to 14 calendar days within one month of the birth of their child. During this period, the employee is entitled to receive his average salary. The employer is responsible for paying the employee’s salary during this time and for ensuring that he is provided with appropriate working conditions upon his return.
Parental leave should be available to both male and female employees for the purpose of caring for their child. Parental leave can be taken until the child reaches the age of 3 years old, and it can be used in addition to maternity or paternity leave.
The duration of parental leave depends on the length of service and the number of children. Employees with less than 5 years of service are entitled to 56 calendar days of parental leave, while those with 5 or more years of service are entitled to 112 calendar days of parental leave.
There is no specific law or regulation regarding bereavement leave. However, some employers may provide their employees with a few days of paid or unpaid leave to grieve the loss of a close family member or a loved one.
What are the minimum vacation days?
Employees in Kyrgyzstan are entitled to a minimum of 18 calendar days of paid annual leave per year. This entitlement may increase depending on the length of service with the employer.
Employees with less than five years of service are entitled to 18 days of paid annual leave per year, while employees with five or more years of service are entitled to 24 days of paid annual leave per year.
Health security & private Insurance
The Kyrgyz government provides a universal healthcare system that covers most medical treatments and services. All citizens and permanent residents of Kyrgyzstan are eligible to receive healthcare services through the government system, and there are no premiums or fees required to access basic medical care.
However, the quality of healthcare in the public system can sometimes be questionable, and there may be long waiting times for non-emergency treatments. For this reason, some individuals may choose to purchase private health insurance to supplement their healthcare coverage and access more timely or specialized medical care.
*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
Why use Native Teams for hiring in Kyrgyzstan?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.