What should I know about hiring in Uzbekistan?
Hiring from Uzbekistan can significantly boost your global team. However, navigating Uzbekistan’s labour laws is crucial before recruiting. Strict regulations govern work standards, minimum wage, annual leave, work hours, and termination conditions, all outlined in the Uzbek Labor Code.
With the rise of remote work, ensuring your employment contracts comply with Uzbek legislation is essential. The simplest and fastest way to hire Uzbek remote workers without establishing a local branch is through an Employer of Record (EOR) provider like Native Teams.
Why is Uzbekistan a good choice for finding remote employees?
Uzbekistan offers several advantages for finding remote employees, such as a growing talent pool, strategic location, cost-effectiveness and a booming economy. Uzbekistan’s economy is on the rise, attracting talent and fostering a business-friendly environment. This can translate to a more motivated and forward-thinking workforce.
The country also has a young and educated population with a growing number of professionals interested in remote work. This allows you to tap into a pool of skilled individuals eager to contribute to your global team. Uzbekistan offers a good balance between a skilled and affordable talent pool, a strategic location for global collaboration, and a growing economy that attracts qualified professionals.
How can Native Teams help you hire in Uzbekistan?
You must either hire a global employment solutions provider or possess a legal entity in Uzbekistan in order to begin hiring citizens of that nation. It may be quite expensive and time-consuming to establish a new legal entity overseas, particularly if you’re not already familiar with the local rules and regulations. With our Employer of Record services, Native Teams can assist you in finding personnel in Uzbekistan and manage payroll, taxes, benefits, and global team compliance.
Hire your first Uzbek employee with Native Teams.
Legal requirements for hiring in Uzbekistan
Minimum wage
The minimum monthly wage was increased to UZS 1,050,000.00 per month from the start of April 2023 (approx. $82).
Contributions & taxes
Employee tax
According to Uzbek law, employers, employees, and corporations should pay various types of taxes and contributions. The tax rate is mostly fixed at 12% in the country.
Employer tax
A 12% social tax and a 12% personal income tax have been in effect since 2019.
Income tax
The nation has a flat income tax rate of 12%, which is deducted by businesses straight from the wages of staff members.
To calculate the salary and taxes in Uzbekistan please click here.
Payroll cycle
In Uzbekistan, the term “pay cycle” refers to the time frame within which an organisation pays its workers; this can differ based on the pay frequency that the firm decides to use. The country uses a monthly frequency cycle.
Is there a 13th salary in Uzbekistan?
Payments for the thirteenth month are not required, and bonus payments are at the discretion of the employer.
Labor rules
Probation period
The maximum probation period in Uzbekistan is 3 months.
Notice period
The standard notice period in Uzbekistan is 2 months for changing jobs and 2 weeks for health reasons.
Working hours
In accordance with Uzbekistan’s labour code, an employee’s regular work hours are 40 hours per week. Only if there are six working days in a week may an employee work seven hours a day, a worker who works five days a week may put in up to eight hours a day in the office. The Uzbek Employment Act stipulates that an employee’s regular workday be cut short by one hour the day before their non-working day. Therefore, a worker will benefit from one less hour of work on Saturday if they have a Sunday holiday.
Overtime
Overtime work is defined as any work completed by an employee beyond their regular working hours and is required to be paid in addition to their base wage. According to labour regulations governing working hours in Uzbekistan, overtime compensation is calculated as 200% of an employee’s base wage.
According to the working hours law of Uzbekistan, the overtime rate is specified in the employment contract or agreement. Overtime is any work completed in excess of 40 hours per week. An employee may work up to 120 hours of overtime annually.
Leave and benefits
Public holidays
- 1 January – New Year’s Day
- 14 January – Day of Defenders of the Native land
- 8 March – International Women’s Day
- 21 March – Nowruz
- 10 April – Eid al-Fitr
- 9 May – Day of Memory and Honour
- 16 June – Eid al-Adha
- 1 September – Independence Day
- 1 October – Teachers’ Day
- 8 December – Constitution Day
Parental leave
Parental leave is limited to the guardian or parents of a child under the age of sixteen who has a disability, according to Uzbekistan’s labour code. Such a guardian or parent is entitled to additional paid leave, with the parental leave being funded by the State Social Insurance.
In Uzbekistan, it is also referred to as shared paternity leave because both the mother and the father are eligible to use it. For women who have two or more children under the age of twelve or a disabled child under the age of sixteen, an additional paid leave of at least three working days is granted annually.
Maternity leave
Paid maternity leave is required for female employees in Uzbekistan. An employee who is pregnant may take maternity leave 70 days prior to giving birth and 56 days following. After giving birth to twins, an employee is entitled to up to 70 days of leave. Foreigners in Uzbekistan are entitled to the same maternity leave as citizens.
Other leave
Sick leave
Employees in Uzbekistan are entitled to take sick leave without a maximum limit and a fully paid sick leave of 30 days per year.
Insurance
Health security & private insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
*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.*
Visa
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?
To apply for a visa/work permit in Uzbekistan, upload the documents from our onboarding list (relocation to log in/pricing).
Why use Native Teams for hiring in Uzbekistan?
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.