Employer of Record in Kazakhstan

An Employer of Record (EOR) in Kazakhstan is a company that legally hires employees on your behalf. This means you can build a team in Kazakhstan without setting up a local entity, which can be a complex and time consuming process. An EOR handles all the HR tasks like payroll, taxes, benefits, and employment contracts, ensuring you stay compliant with local labor laws. You manage your team's day to day work, while the EOR takes care of the administrative side. Rivermate is an EOR provider that can help you with this.

How an Employer of Record (EOR) Works in Kazakhstan

Using an EOR in Kazakhstan simplifies the process of hiring employees. Here is a step by step look at how it works:

1. You Find the Candidate: You recruit and select the talent you want to hire in Kazakhstan.
2. The EOR Hires Them: The EOR legally employs the candidate through a local, compliant employment contract.
3. Onboarding: The EOR manages the onboarding process, including gathering necessary documents and setting up payroll.
4. Payroll and Benefits: The EOR handles all payroll, tax withholdings, and administration of employee benefits in compliance with Kazakh law.
5. Ongoing HR Support: The EOR provides ongoing HR support to your employees, answering their questions about payroll and local regulations.
6. You Manage the Work: You retain control over your employee's daily tasks, projects, and performance.

Benefits of Using an EOR for Hiring in Kazakhstan

Using an EOR to hire in Kazakhstan offers several advantages. It allows you to enter the market and build a team quickly, without the need to establish a legal entity, which can take months. This approach saves you time and reduces the risks associated with navigating unfamiliar labor laws and regulations.

Here are some of the key benefits:

• Faster Market Entry: You can hire employees and start operations in a matter of days or weeks, instead of months.
• Compliance Assurance: EORs are experts in local labor laws, ensuring that your hiring practices, contracts, and payroll are fully compliant.
• Reduced Administrative Burden: The EOR handles all HR related administrative tasks, freeing you up to focus on your core business.
• Cost Savings: You avoid the significant costs associated with setting up and maintaining a legal entity in Kazakhstan.
• Access to Local Expertise: EORs have in depth knowledge of the local market, including competitive salaries and benefits packages.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Kazakhstan includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Kazakhstan.

Hiring in Kazakhstan can be a straightforward process when you understand the local labor laws. The country's legal framework is designed to protect employees, so it's important to be aware of your obligations as an employer. This guide will walk you through the key aspects of hiring in Kazakhstan, from employment contracts to working hours and holidays.

Employment contracts & must-have clauses

You are required to have a written employment contract for all employees. The contract should be in Kazakh and Russian, and you can include an English version if needed.

There are two main types of employment contracts in Kazakhstan:

• Indefinite term: This is the standard contract for permanent positions.
• Fixed-term: This contract is for a specific period, usually not exceeding one year. It can be extended up to two times.

Here are the essential clauses that you must include in an employment contract:

Probation periods

You can include a probation period in the employment contract to assess a new employee's suitability for the role.

• The maximum probation period is three months.
• For senior management positions, the probation period can be extended to six months.
• During the probation period, either you or the employee can terminate the contract with three days' notice.

Working hours & overtime

The standard work week in Kazakhstan is 40 hours, typically eight hours per day, five days a week.

• Overtime is any work performed beyond the standard 40-hour work week.
• Overtime is limited to two hours per day and 12 hours per month.
• You must pay employees 1.5 times their regular hourly rate for overtime work.

Public & regional holidays

Kazakhstan has a number of national and religious holidays. If a public holiday falls on a weekend, the following Monday is typically a day off.

Here are the public holidays for 2025:

Hiring contractors in Kazakhstan

Hiring independent contractors can be a flexible option for project-based work. However, it's crucial to classify workers correctly to avoid legal risks.

An independent contractor is a self-employed individual who provides services to your business. They are not considered employees and are not entitled to the same benefits and protections.

Misclassifying an employee as an independent contractor can lead to significant penalties, including:

• Back payment of taxes and social security contributions.
• Fines and other legal consequences.

An Employer of Record (EOR) can help you mitigate the risk of misclassification. An EOR acts as the legal employer for your workers in Kazakhstan, ensuring compliance with all local labor laws. This allows you to focus on your business while the EOR handles payroll, benefits, and other administrative tasks.

In Kazakhstan, you must pay your employees in the local currency, the Kazakhstani Tenge (KZT). Managing payroll involves understanding and complying with local labor laws and tax regulations, which can be complex. You are responsible for calculating and withholding taxes from your employees' salaries and remitting them to the government.

Payroll cycles & wage structure

In Kazakhstan, the payroll cycle is typically monthly. You should pay employees by the last working day of the month. You must provide detailed pay slips that show a breakdown of all deductions and contributions. The government sets a national minimum wage each year, which is the baseline for all salary calculations. As of January 1, 2025, the minimum wage is KZT 85,000 per month.

Overtime & minimums

The standard work week in Kazakhstan is 40 hours, or 8 hours per day. Any work beyond these hours is overtime. You must pay employees 1.5 times their regular hourly rate for overtime work. Overtime is limited to two hours per day and 12 hours per month. For work on public holidays, you must pay employees at a higher rate.

Employer taxes and contributions

Employers in Kazakhstan contribute to social insurance, social tax, and medical insurance for their employees. These contributions are in addition to the employee's gross salary.

Employee taxes and deductions

You must withhold taxes and contributions directly from your employees' wages. The primary deductions are for income tax, pension, and health insurance.

In Kazakhstan, providing the right mix of benefits and leave is key to attracting and keeping great talent. You need to understand the local laws to stay compliant. This means knowing what leave employees are entitled to and what benefits are required by law. It also helps to know what extra benefits are common in the job market.

Statutory leave

Kazakhstan's labor laws provide several types of mandatory leave for employees.

• Annual Leave: Employees are entitled to a minimum of 24 calendar days of paid annual leave. This is a baseline, and you can offer more in an employment contract.
• Maternity Leave: Female employees get 70 calendar days of paid leave before giving birth and 56 days after. In cases of multiple births or complications, the postnatal leave extends to 70 days.
• Childcare Leave: After maternity leave, either parent can take unpaid leave to care for a child until they turn three.
• Sick Leave: Employees can take paid sick leave if they have a medical certificate. The employer pays for a certain period, and then social insurance benefits may apply.
• Leave for Life Events: The law also requires employers to provide leave for events like marriage or the death of a family member.

Public holidays & regional holidays

Employees in Kazakhstan are entitled to paid time off for national and religious holidays. If a public holiday falls on a weekend, the day off usually moves to the following Monday.

Here are the public holidays for 2025:

Typical supplemental benefits

To build a competitive benefits package, you need to know the difference between what is required by law and what you can offer as an extra perk.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR acts as the legal employer for your team in Kazakhstan. This means they handle all the administrative and legal requirements of employment.

Here is how an EOR can help:

• Compliance: An EOR ensures you comply with all of Kazakhstan's labor laws, including mandatory benefits and leave.
• Benefits Administration: They manage the enrollment and administration of all benefits, both statutory and supplemental.
• Local Expertise: You get access to local experts who understand the Kazakh market and what benefits are competitive.
• Simplified Payroll: The EOR handles all payroll calculations, including deductions for social contributions and taxes.
• Risk Reduction: An EOR reduces your risk of non-compliance with local laws and regulations.

Using an EOR allows you to offer your employees in Kazakhstan a comprehensive and compliant benefits package without needing to set up a local entity. This saves you time and resources, so you can focus on growing your business.

When you part ways with an employee in Kazakhstan, you need to follow a clear process. The rules are in the Labor Code of the Republic of Kazakhstan. You must have a valid reason for termination, give proper notice, and pay any final wages and severance. Think of it as a formal checklist to ensure you handle everything correctly and fairly.

Notice Periods

You generally need to give your employee written notice before their last day. The standard notice period is one month. This applies if you are ending the contract due to reasons like company liquidation or staff reductions.

An employee also needs to give you one month's notice if they decide to leave. In some situations, like during a probationary period, the notice period can be much shorter.

You and your employee can agree to a different notice period in the employment contract. However, it cannot be less than what the law requires.

Severance Pay

Whether you owe severance pay depends on why the employee is leaving.

• Redundancy or Liquidation: If you eliminate a position or close the business, you must pay severance. This is typically equal to one month's average salary.
• Drop in Production: If the termination is due to a decrease in production volumes, the severance pay is two months' average salary.

You must pay all final amounts, including unused vacation pay, within three working days of the termination date.

How Rivermate Handles Compliant Exits

When you work with us, you don't have to figure this out on your own. We manage the entire offboarding process for you.

Here’s how we help:

• Compliance: We ensure every step follows Kazakhstan's labor laws.
• Documentation: We handle all the necessary paperwork, from the written notice to the final payment records.
• Calculations: We calculate the correct final pay, including any severance and unused vacation time.
• Communication: We help you communicate clearly with your employee to ensure a smooth and professional exit.

Our goal is to make the process straightforward and compliant, protecting you from legal risks and giving you peace of mind.

Navigating Kazakhstan's visa and work permit system can feel complicated. The government has specific rules for foreign nationals who want to work in the country. Essentially, you need a work permit before you can get a work visa. The work permit allows you to be employed, and the work visa allows you to live in Kazakhstan for your job. The process involves your employer applying for a work permit on your behalf, and once that’s approved, you can apply for the visa.

Employment visas & sponsorship realities

Getting the right to work in Kazakhstan is a multi-step process. An employer must first get a work permit for you, which involves showing the government why they need to hire a foreign national.

An Employer of Record (EOR) can simplify this. An EOR acts as your legal employer in Kazakhstan, handling all the necessary paperwork and ensuring everything is done correctly.

Here’s what an EOR can typically do:

• Sponsor work visas: An EOR can manage the invitation letter applications and the entire visa sponsorship process.
• Handle compliance: They make sure your employment contract and all related documents follow Kazakhstan's labor laws.
• Manage payroll: An EOR takes care of salary payments, taxes, and social security contributions.

The main route to working in Kazakhstan is through an employer-sponsored work permit, which then leads to a work visa, like the M1 visa for foreign workers. An EOR is a practical way to handle this, as they are set up to manage the complexities of Kazakhstan's immigration laws.

Business travel compliance

If you are traveling to Kazakhstan for short-term business, the rules are different. For many nationalities, including U.S. citizens, you can enter Kazakhstan without a visa for up to 30 days for business purposes.

Keep these points in mind for short business trips:

• Visa-free travel: You can stay for up to 30 days at a time, but no more than 90 days total within a six-month period.
• What counts as business: This can include meetings, negotiations, and attending conferences.
• What is not allowed: You cannot use a business visa or visa-free travel for employment.

If your stay needs to be longer, or your activities go beyond typical business meetings, you will likely need a work permit and a work visa. It is important to know that you cannot switch from a business visa to a work permit while you are in the country.