Kazakhstan is a transcontinental landlocked country located in Central Asia and partly in Eastern Europe. It is the world’s largest landlocked country, bordered by Russia, China, Kyrgyzstan, Uzbekistan, and Turkmenistan.

The country’s capital of Nur-Sultan was formerly known as Astana until 2019. Kazakhstan generates 60% of Central Asia’s GDP, and has a democratic, secular, constitutional republic.

Types of Contracts

In Kazakhstan, the following contract types are available:

• Indefinite;
• Fixed Term contracts with at least 1 year duration. The contract can be extended twice.
• Part-time.

Working Hours

The maximum number of working hours in Kazakhstan is 40 hours per week.

Overtime

Maximum overtime in Kazakhstan is 2 hours per day, or 1 hour for heavy work (which is work with harmful and/or dangerous working conditions).

Minimum overtime pay is 150% of the normal rate, and payment for working on holidays, weekends, and night shifts is 150% of the normal rate.  If agreed by both parties, it is allowed to provide hours of rest for overtime work at the rate of at least one hour of rest for one hour of overtime work.

Minimum Wage

As of January 1, 2024, the minimum wage in Kazakhstan is KZT 85,000 per month.

Probation Period

The minimum duration of probation is not prescribed by law. The maximum probationary period is 3 months, however, for senior positions such as heads and deputy heads of organizations, chief accountants and their deputies, and heads of branches or representative offices of organizations, this period may be extended up to 6 months.

Taxes & Local Employment Costs

Employee Taxes

Employees in Kazakhstan pay 10% of their gross salary as income tax. Employees contribute a percentage of their gross salary towards pension, health insurance and social insurance as illustrated below:

• Pension = 10%
• Health Insurance = 2%

Employer Taxes & Contributions

Taxes for employers in Kazakhstan are broken down as such:

• Social insurance contribution = 3.5%
• Social tax = 9.5%
• Social health insurance = 3%
• Pension fund = 1.5%
• Injury = 0.12%

Annual Leave

The basic paid annual leave for employees is provided for 24 calendar days unless more days are provided for in labor contracts. Accessing paid annual leave is through the agreement of the parties at any time of the working year. The working year is 12 calendar months, calculated from the first day of work of the employee.

By agreement between the employee and the employer, vacation may be divided into parts. One of the parts must be at least 14 calendar days. Payment for vacation is made no later than three working days before it starts.

It is prohibited to withhold vacation or part of it for 2 consecutive years. Unused vacation days can be carried over to the following year.

Employees have the option to receive cash instead of taking leave. Upon termination of the contract, any unused vacation days are compensated regardless of the reasons for termination.

Sick Leave

An employee is entitled to a maximum of 60 calendar days of sick leave. The employee must submit a sick leave certificate.Sick leave is paid by the employer.

The employer is obliged to pay employees social benefits for temporary disability.  The amount is determined by multiplying average daily earnings by the number of working days falling on the period of temporary disability. Temporary disability benefits are paid along with wages.

Maternity Leave

Employees in Kazakhstan are entitled to a total of 126 calendar days of maternity leave, split into 70 days before the birth and 56 days after the birth. The number of days is not dependent on the employee’s length of service. The state pays for maternity leave.

Paternity Leave

There is no statutory provision for paid paternity leave in Kazakhstan.

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Benefits

Summary

Employers in Kazakhstan can typically offer the following benefits:

Statutory Benefits

Employees are entitled to the following statutory benefits:

• Pension;
• Disability and survivor pension;
• Health insurance.

Non Statutory Benefits

Common non-statutory benefits include:

• Private Medical insurance;
• Mobile phone compensation;
• Meals;
• Transport.

Process

Employers can terminate employment contracts for reasons related to business, personal, or misconduct. Terminations require written notice and explanation for the dismissal, and if the reason is misconduct the employer need to give a warning and the employee needs a chance to explain their actions.

Notice Period

The minimum notice period for terminations in Kazakhstan is 1 month. During probation, the employer can terminate the employment contract any time before the end of the probationary period by giving 3 days notice.

Severance Pay

Employers are mandated to pay out unused vacation. If the employee resigns, no statutory severance is required.

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