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From the shores of the Caspian Sea to the alpine wildlands of the Altai Mountains, Kazakhstan offers remarkable natural beauty from border to border.
Historically, the country is known as part of the Silk Road, which connected China to Europe and was traveled by merchants for more than 1,500 years. But for today’s entrepreneurs and remote workers, Kazakhstan offers more tech-focused attractions.
Since declaring independence weeks before the dissolution of the USSR and the Soviet era in 1991, Kazakhstan has grown into Central Asia’s largest economy and — through the Astana Hub International Technology Park — the region’s most prominent tech hub.
When combined with the country’s low cost of doing business, Kazakhstan is an attractive home for IT startups and remote workers who power tech.
Let’s review Kazakhstan’s startup landscape, including the easiest path to hire remote workers from Kazakhstan.
To steer Kazakhstan’s economy away from its dependence on oil and gas, President Kassym-Jomart Tokayev spearheaded the Astana Hub, an initiative meant to encourage tech and IT startups.
The Hub promotes entrepreneurship, innovation, and economic development. It provides incubation and acceleration programs, awards grants, and removes caps on the number of international employees that companies can hire.
The Astana Hub has already achieved its goals of raising $200 million in startup investment by 2022 and exporting $500 million in revenue by 2023. So what’s next? Export $1 billion in IT services annually by 2026 and build a local Unicorn by 2027.
In 2019, Kazakhstan’s IT market represented 3.2% of its GDP, with 6,900 companies employing more than 32,000 professionals and exporting nearly $93 million in IT services.
By 2023, the IT market expanded to 4.3% of Kazakhstan’s GDP, with 11,000+ companies employing more than 70,000 professionals and exporting over $127 million in services.
To help ensure startups receive all the benefits of the Astana Hub, Kazakhstan has enacted state measures meant to ensure the initiative has an impact, including:
Startups with financial support from the Astana Hub enjoy additional benefits, such as project mentorship and fundraising assistance, that are core to the Seed Money program.
Entrepreneurs who want to launch an IT business in Kazakhstan and receive Astana Hub tax preferences can access remote assistance via WhatsApp and Telegram to:
Along with the Astana Hub, Kazakhstan has plans for a National Artificial Intelligence Platform and expectations for a training course that will offer AI certification to 80,000 people by 2029.
Hiring in Kazakhstan offers several advantages for businesses expanding globally. But first, here is a quick overview of the country:
Located on a bridge between Europe and Asia and with one of the world’s cheapest costs of living, Kazakhstan makes a cost-effective Central Asian home base. It provides businesses and global talent with convenient access to multiple markets.
The government of Kazakhstan further enhances this benefit by limiting taxes on entrepreneurs’ income and taxes.
Along with reducing entrepreneurial tax burdens, the government has streamlined procedures for running businesses — reducing bureaucracy and improving regulations to position Kazakhstan as a popular destination for startups.
At the same time, investments in transportation networks, communication systems, and utilities have created a robust infrastructure throughout the country.
Kazakhstan’s geographical location, paired with its strong focus on STEM education, offers a bedrock of flexible talent who are well-educated and skilled in engineering, IT, finance, and natural resources.
Many professionals are bilingual, and English proficiency is increasing, particularly among young people. The workforce is also known for its openness to different cultures, making Kazakhstan citizens ideal team members for international workforces.
Additionally, like its cost of living, labor costs are lower than those of many Western countries, offering a significant advantage for startups and small to mid-size businesses looking to optimize their budgets.
There are several working hour and pay standards businesses need to adhere to when hiring in Kazakhstan, though regulations are far less stringent than in many countries.
The minimum monthly wage is KZT 85,000 for a standard workweek of 40 hours. Overtime requires a written agreement between the employer and employee, is limited to two hours per day and 12 hours per month, and pays 1.5 times the regular salary.
Employer taxes are generally 16%, and employers are responsible for withholding taxes and social contributions from employee salaries. These include:
Payroll Taxes:
Employee Social Contributions:
Employer Social Contributions:
Employers in Kazakhstan can terminate employment contracts for various reasons, from redundancy to relocation to misconduct.
Kazakhstan’s employees are entitled to various leave benefits, including vacation and holiday pay, sick leave, and parental leave.
Kazakhstan observes 19 public holidays throughout the year. Additionally, all workers are entitled to at least 24 days of paid annual leave. Additional leave is available for employees who work in hazardous conditions and those with specific disabilities.
Employees are entitled to at least three days of sick leave per year. Depending on the severity of the illness, this allowance may increase to six days.
In Kazakhstan, mothers are entitled to 126 days of paid maternity leave, often divided into 70 days before the baby’s due date and 56 days post-birth.
Additionally, mothers residing in areas affected by nuclear testing receive an extended maternity leave of 160 days.
It’s easy to understand why digital nomads love Kazakhstan. While an influx of tech talent helps boost the country’s economy, the country’s remote work environment benefits digital nomads.
Global talent working in Kazakhstan enjoy an average cost of living lower than that in popular digital nomad destinations like Bali, Bangkok, Barcelona, Lisbon, and Mexico City.
Consider the low cost of living in Almaty, Kazakhstan:
Additionally, Kazakhstan supports numerous coworking spaces, tech incubators, and networking events to help digital nomads do their best work and meet like-minded talent. The country is also home to many remote worker-friendly cafes and coffee shops.
Kazakhstan doesn’t offer a dedicated digital nomad visa, but whispers of a developing program suggest the country wants to soon. In fact, President Tokayev publicly stated his desire to attract digital nomads to Kazakhstan.
Until a digital nomad visa is introduced, visas that support freelancers and remote work include the Business Visa, which requires an invitation letter from a Kazakhstani company, and the Work Visa, which requires securing an additional work permit.
Navigating the complexities of hiring employees in a new country can be daunting. That’s where an Employer of Record (EOR) like Remofirst comes in, helping you hire and work with remote staff in over 180 countries, including Kazakhstan.
From payroll and benefits to taxes and compliance, an EOR helps relieve the legal and financial risks associated with employing a global workforce, making it easier for you to access top talent in markets like Kazakhstan.
Book a demo today to learn how an EOR can empower your business to build a better global team.
