Employer of Record in Kyrgyzstan

An Employer of Record (EOR) in Kyrgyzstan is a company that legally hires employees on your behalf. This means they handle all the local HR tasks. Think payroll, taxes, benefits, and compliance with Kyrgyzstan's labor laws. You get to manage your team's day-to-day work, while the EOR takes care of the administrative burden. Companies like Rivermate provide EOR services to help you expand into new markets without setting up a local entity.

How an Employer of Record (EOR) Works in Kyrgyzstan

Using an EOR in Kyrgyzstan simplifies your expansion. Here is how it works:

• You Find the Talent: You recruit and select the best person for the job.
• The EOR Hires Them: The EOR legally hires your chosen candidate through a local, compliant employment contract.
• Onboarding Starts: The EOR manages all the necessary paperwork for onboarding. This includes things like registering the employee for social security and taxes.
• Payroll and Benefits are Managed: The EOR processes payroll, withholds the correct taxes, and manages employee benefits.
• You Manage Your Team: You direct your employee's daily tasks and responsibilities. The EOR remains the legal employer, but you manage the work.

Why use an Employer of Record in Kyrgyzstan

An EOR helps you enter the Kyrgyz market quickly and compliantly. It saves you the time and expense of establishing a legal entity in the country. This lets you test the market or start a project without a major commitment.

Here are some key benefits:

• Stay Compliant: Kyrgyzstan's labor laws can be complex. An EOR understands the local regulations and ensures you follow them.
• Save Time: Setting up a business entity can take months. An EOR can get your employee started in a matter of days.
• Reduce Costs: You avoid the high costs associated with company registration, legal fees, and opening a local bank account.
• Access Local Expertise: EORs provide expert support on local HR matters. This includes everything from employment contracts to termination procedures.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Kyrgyzstan 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 Kyrgyzstan.

Hiring in Kyrgyzstan requires understanding of the local labor laws, which are primarily governed by the Labor Code of the Kyrgyz Republic. You will find a skilled workforce, with many individuals fluent in English and experienced in working with international companies. To hire employees, you must provide a written employment contract that outlines all terms of employment. It's important to be aware of regulations regarding working hours, wages, and benefits.

Employment contracts & must-have clauses

When you hire an employee in Kyrgyzstan, you must provide a written employment contract. This contract is a required legal document that clarifies the working relationship from the start. You can use either an indefinite-term contract for ongoing roles or a fixed-term contract for specific projects, not to exceed five years.

Your employment contracts should include these essential clauses:

• Job description: Clearly define the employee's role and responsibilities.
• Compensation: State the salary and any other financial benefits in Kyrgyzstani som.
• Working hours: Specify the daily and weekly work schedule.
• Duration of contract: Indicate whether the contract is for a fixed term or is indefinite.
• Termination conditions: Outline the terms for ending the employment relationship.
• Probationary period: If applicable, detail the length and terms of the probation period.
• Health and safety: Describe the measures in place to ensure a safe working environment.

Probation periods

You can include a probationary period in the employment contract to assess a new hire's suitability. The maximum length of this period depends on the role:

During the probationary period, either you or the employee can terminate the contract with a three-day written notice. If the employee's performance is not satisfactory, you must provide the reasons in the written notice.

Working hours & overtime

The standard workweek in Kyrgyzstan is 40 hours, usually structured as eight hours per day over five days. You must compensate employees for any work performed beyond these standard hours.

Here are the overtime compensation rates:

• First two hours of overtime: 150% of the normal hourly wage.
• Subsequent hours of overtime: 200% of the normal hourly wage.

Public & regional holidays

Your employees are entitled to paid time off for public holidays. Here is a list of the official public holidays in Kyrgyzstan:

• January 1: New Year's Day
• January 7: Orthodox Christmas
• February 23: Defender of the Fatherland Day
• March 8: International Women's Day
• March 21: Nooruz Mairamy
• April 7: Day of the People's April Revolution
• May 1: International Workers' Day
• May 5: Constitution Day
• May 9: Victory Day
• August 31: Independence Day
• November 7-8: Days of History and Commemoration of Ancestors
• Orozo Ait (Eid al-Fitr): Date varies (lunar calendar)
• Kurman Ait (Eid al-Adha): Date varies (lunar calendar)

Hiring contractors in Kyrgyzstan

You can also hire independent contractors for project-based work. This offers flexibility and can be a good way to access specialized skills without the commitments of a full-time employee.

Independent contractors are self-employed and manage their own taxes and social security contributions. They are not covered by the Labor Code, which means they are not entitled to benefits like paid leave or minimum wage.

A major risk in hiring contractors is misclassification. If a contractor is deemed to be an employee, you could be liable for back taxes, benefits, and other penalties. An Employer of Record (EOR) can help you mitigate this risk. An EOR ensures that your contractors are classified correctly and that all local labor laws are followed, allowing you to focus on your business operations.

Understanding compensation and payroll in Kyrgyzstan is straightforward. You need to follow local laws to make sure you pay your team correctly and on time. Salaries can differ quite a bit depending on the industry, the person's job and experience, and where they are in the country. For example, you will likely see higher salaries in the capital city of Bishkek. Industries like IT, finance, and mining often pay more than sectors like agriculture.

Payroll cycles & wage structure

In Kyrgyzstan, the payroll cycle is typically monthly. You will pay your employees once a month, usually through a direct bank transfer. Cash payments are not as common. You must provide a payslip with each payment. This document should clearly show the employee's gross pay, any deductions like taxes, and the final net pay they receive.

Beyond the regular salary, you can offer other types of compensation. These can include:

• Performance bonuses
• Holiday bonuses
• Bonuses for long-term service

Overtime & minimums

The standard work week is 40 hours, based on an 8-hour day. If an employee works beyond these hours, you must pay them overtime. The overtime rate is 150% of their regular salary.

As of January 2024, the minimum wage in Kyrgyzstan is 12,234 KGS per month. You must pay all employees at least this amount.

Employer taxes and contributions

As an employer, you are responsible for contributing to the State Social Insurance Fund (SSIF) for each of your employees. This covers pensions, health insurance, and other social benefits.

Employee taxes and deductions

Employees also contribute to social security and pay income tax. You must withhold these amounts from their paychecks and send them to the correct government agencies.

In Kyrgyzstan, you'll find a system of employee leave and benefits shaped by the country's Labor Code. This framework provides a clear set of minimums that all employers must follow. Understanding these core requirements is the first step to hiring talent in the country. Beyond the essentials, you can offer more to attract the best people.

Statutory leave

The government sets minimum leave entitlements.

• Annual Leave: You must provide employees with 28 calendar days of paid annual leave. An employee is typically eligible after working for 11 consecutive months. You can agree to grant this leave earlier. At least one portion of the leave must be 14 consecutive days.
• Sick Leave: Employees are entitled to paid sick leave. To be eligible, they must provide a medical certificate. The social insurance fund typically covers the cost of sick leave payments.
• Maternity Leave: Female employees get 126 calendar days of paid maternity leave. This is usually split into 70 days before the birth and 56 days after. The employer pays for the first 10 days, and the state's social insurance covers the rest.

Public holidays & regional holidays

Your employees are entitled to a paid day off for national holidays. If they have to work on a public holiday, you must pay them at a higher rate, often double their regular pay.

Here are the public holidays for 2025.

Note: Islamic holiday dates are based on the lunar calendar and may vary.

Typical supplemental benefits

To build a competitive benefits package, you can offer more than the legal minimums.

How an EOR can help with setting up benefits

Setting up a compliant benefits plan in a new country can be complex. You need to understand and follow all local labor laws.

An Employer of Record (EOR) simplifies this process.

An EOR already has a legal entity in Kyrgyzstan. This means you don't have to set one up yourself to hire employees. The EOR handles the administrative work of managing benefits and ensures your company complies with all local regulations. They manage payroll, distribute benefits, and make sure everything is done correctly from the start. This allows you to focus on growing your business and managing your team.

When an employment relationship in Kyrgyzstan ends, you need to follow a specific process. The country's Labor Code sets the rules for both you and your employee. It is important to handle everything correctly to avoid legal problems. This means giving the right amount of notice and paying any required severance.

Notice periods

When you decide to end an employment contract, you must give your employee written notice. The length of this notice period depends on the reason for the termination.

Here are the minimum notice periods you need to provide:

• Liquidation of your company: 2 months
• Staff reductions: 2 months
• Employee is not qualified for the job: 2 weeks
• Change in company ownership: 1 month (for the head, deputy, and chief accountant)

If an employee decides to resign, they generally need to give you one month's notice. During a probationary period, either you or the employee can end the contract with just three days' written notice.

Severance pay

In certain situations, you are required to pay severance to an employee when their employment ends. The amount of severance pay is based on the employee's average monthly salary.

Here are the key severance pay requirements:

• Company liquidation or staff reduction: You must pay at least two months' of the employee's average salary.
• Other specific grounds in the Labor Code: In some other cases, a payment of at least one month's average salary is required.

Collective agreements or individual employment contracts can include higher severance amounts. On the employee's last day, you must pay all final wages, compensation for unused vacation, and any severance pay that is due.

How Rivermate handles compliant exits

When you use an Employer of Record like Rivermate, we manage the termination and offboarding process for you. We make sure that every step follows Kyrgyzstan's labor laws.

Here is how we handle compliant exits:

• Clear documentation: We ensure all reasons for termination are well documented. This is especially important for dismissals based on performance or misconduct.
• Proper notice: We give the employee the correct written notice according to the legal requirements.
• Final payment calculation: We calculate and process all final payments. This includes final wages, unused leave, and any required severance.
• Formal termination order: We issue a formal written order for the termination. We make sure it is signed and delivered to the employee as required.
• Legal compliance: We stay up to date with Kyrgyzstan's labor laws to protect you from legal risks.

Navigating the visa and work permit process in Kyrgyzstan requires a clear understanding of the local regulations. For foreign nationals to legally work in the country, both a work visa and a work permit are necessary. The State Migration Service (SMS) is the governing body that manages this process. A key aspect of hiring foreign workers is the annual quota system, which varies by industry and region. This means companies must apply for a quota to hire foreign nationals, typically at the end of the calendar year.

Employment visas & sponsorship realities

An Employer of Record (EOR) can be a practical solution for companies hiring in Kyrgyzstan without a local legal entity. An EOR acts as the legal employer, handling visa sponsorship, work permit applications, payroll, and tax compliance. This can simplify the process and reduce risks for companies unfamiliar with Kyrgyzstan's laws.

Here are some practical routes for employment:

• Work Visa (Type W): This is the standard visa for foreign nationals with a work permit. The permit is usually valid for up to one year and can be renewed.
• Digital Nomad Visa: Kyrgyzstan offers a "Digital Nomad" visa for IT and software development specialists from certain countries. This visa allows for a stay of up to six months, with the possibility of a six-month extension.

The process for obtaining a work visa and permit involves several steps:

1. Quota Approval: The employer must first secure a quota from the State Migration Service to hire foreign workers.
2. Work Permit Application: Once the quota is approved, the employer applies for a work permit on behalf of the employee.
3. Work Visa Application: After the work permit is granted, the employee can apply for a work visa.

Business travel compliance

For short-term business visits, a business visa is the appropriate option. It is important to note that a business visa does not permit you to work in Kyrgyzstan.

Here's what you need to know about business travel:

• Visa-Free Travel: Citizens of many countries, including those in the EU, Schengen Area, USA, UK, and Canada, can enter Kyrgyzstan for up to 90 days without a visa for business or tourism purposes.
• Business E-Visa: For those who require a visa, Kyrgyzstan offers an electronic visa (e-visa) system. The business e-visa is typically valid for 60 days.
• Permitted Activities: A business visa allows you to engage in business-related activities such as meetings, negotiations, and conferences. You cannot, however, enter the local labor market.
• Registration: Upon arrival, you must register with the local migration authorities within five business days.