Employer of Record in Turkmenistan

An Employer of Record (EOR) in Turkmenistan helps you hire employees in the country without needing to set up your own local company. The EOR becomes the legal employer for your workers, handling all the administrative and legal tasks that come with employment. This includes payroll, taxes, benefits, and making sure you follow all of Turkmenistan's labor laws. You manage your team's day to day work, while the EOR takes care of the HR and legal responsibilities. For companies looking to hire in Turkmenistan, an EOR like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in Turkmenistan

Using an EOR in Turkmenistan is a straightforward process. It allows you to build a team in the country quickly and legally.

Here is how it works:

• You Find the Talent: You identify the people you want to hire in Turkmenistan.
• The EOR Hires Them: The EOR legally hires the employees on your behalf under their local business entity.
• Contracts are Managed: The EOR drafts employment contracts that comply with Turkmenistan's labor laws, covering salary, working hours, and leave.
• Onboarding is Handled: The EOR manages the onboarding process for your new hires.
• Payroll and Benefits are Administered: The EOR processes payroll, deducts taxes and social security contributions, and manages employee benefits.
• You Manage Your Team: You direct the daily tasks and responsibilities of your employees.
• Ongoing Compliance: The EOR stays up to date with any changes in local labor laws to ensure ongoing compliance.

Why use an Employer of Record in Turkmenistan

Using an EOR in Turkmenistan offers a practical solution for companies that want to expand into the country. It removes significant legal and administrative burdens, letting you focus on your business goals.

Here are some key benefits:

• Avoid Setting Up a Local Entity: You can hire employees in Turkmenistan without the time and expense of establishing a legal entity in the country.
• Ensure Legal Compliance: EORs are experts in local labor laws, so they make sure your employment practices are fully compliant, reducing your legal risks.
• Simplify Payroll and HR: An EOR handles all payroll, tax, and benefits administration, which saves you time and resources.
• Hire Talent Faster: The EOR model allows you to onboard new employees quickly, without the delays associated with setting up a new company.
• Access Local Expertise: You benefit from the EOR's knowledge of the local market and employment regulations.

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

Hiring in Turkmenistan can seem complex, but it doesn't have to be. Understanding the local employment landscape is key to successfully building your team in the country. This guide breaks down the essentials of hiring in Turkmenistan, giving you the clear, straightforward information you need.

Employment contracts & must-have clauses

In Turkmenistan, you can establish an employment relationship with either a written or verbal contract. However, we always recommend a written contract. A written agreement in Turkmen or Russian provides clarity for both you and your employee.

There are two main types of employment contracts in Turkmenistan:

• Indefinite-Term Contracts: These are the standard for permanent, ongoing positions.
• Fixed-Term Contracts: You can use these for specific projects, seasonal work, or to temporarily replace an employee. They cannot exceed five years.

Your employment contracts should include these essential clauses:

• Identification of Parties: Full legal names of you and your employee.
• Job Title and Description: A clear outline of the role and responsibilities.
• Start Date: The official first day of employment.
• Workplace: The primary location where the employee will work.
• Remuneration: The salary, any bonuses, and the payment schedule. All salary and compensation amounts should be in Turkmenistan Manat (TMT).
• Working Hours: The standard daily and weekly work schedule.
• Duration of Contract: Specify if the contract is for an indefinite or a fixed term.
• Social Insurance: Details on mandatory social insurance contributions.
• Leave Entitlement: Information on annual leave.

Probation periods

You can include a probationary period in an employment agreement to see if a new hire is a good fit. If you decide to use a probation period, you must state it in the employment contract.

Here are the maximum probation periods allowed:

During the probation period, either you or the employee can terminate the contract with a shorter notice period, typically three days. If the employment continues after the probation period ends, the employee is considered permanent.

Working hours & overtime

The standard workweek in Turkmenistan is 40 hours, usually eight hours a day for five days a week.

When it comes to overtime, here's what you need to know:

• Limits: Overtime is limited to four hours over two consecutive days and a maximum of 120 hours a year.
• Compensation: You must pay employees double their regular hourly wage for overtime work.
• Time Off in Lieu: As an alternative to overtime pay, an employee can request time off.

Public & regional holidays

Your employees in Turkmenistan are entitled to paid leave on public holidays. Here are the public holidays for 2025:

Hiring contractors in Turkmenistan

You can hire independent contractors in Turkmenistan for project-based work. This gives you flexibility and access to specialized skills without the commitments of a full-time employee.

An independent contractor is a self-employed individual who provides services to your company on a contractual basis. They are responsible for their own taxes and social security contributions.

The key difference between an employee and an independent contractor is control. You can direct an employee's work, but you can only direct the outcome of a contractor's work.

Misclassification Risk

Misclassifying an employee as an independent contractor can lead to serious consequences, including back payment of wages, benefits, and taxes. To avoid this risk, you need to ensure your relationship with a contractor is genuinely a client-service provider relationship.

An Employer of Record (EOR) can help you mitigate this risk. An EOR can help you correctly classify your workers and ensure you comply with all local labor laws. This allows you to focus on your business while the EOR handles the complexities of local employment.

Understanding compensation and payroll in Turkmenistan is key to hiring and operating in the country. You'll find a system with a straightforward tax structure and clear, though sometimes evolving, regulations. Navigating these rules helps you establish competitive and compliant salary structures, which is essential for attracting and retaining talent.

Payroll cycles & wage structure

In Turkmenistan, you typically process payroll monthly. You should pay employees their salaries by the end of each month. Payments are most often made directly to an employee's bank account.

Salaries can vary a lot based on the industry and the employee's role. For example, jobs in the oil and gas sector often pay more. While a 13th-month salary is not required by law, you can offer bonuses based on company performance or individual achievements. These bonuses can be a significant part of an employee's total compensation.

Overtime & minimums

The standard workweek in Turkmenistan is 40 hours, usually worked over five days. You must pay employees double their regular hourly wage for any overtime work. Overtime is limited to four hours over two consecutive days and cannot exceed 120 hours per year. As an alternative to extra pay, an employee can ask for time off equal to the overtime hours they worked.

The government sets a minimum monthly wage by presidential decree. Currently, the minimum monthly wage is 1,280 Turkmenistani Manat (TMT).

Employer taxes and contributions

As an employer, you have one primary social security contribution to make for your employees.

Employee taxes and deductions

You are responsible for withholding taxes from your employees' wages and sending them to the government. This system is known as Pay As You Earn (PAYE).

In Turkmenistan, your team has access to a solid foundation of leave and benefits. The government ensures employees receive paid time off for vacation, illness, and national holidays. This provides a supportive structure for your workforce. Understanding these entitlements helps you plan for your team's well-being and stay compliant with local labor laws.

Statutory leave

Here are the legally required leave benefits for employees in Turkmenistan.

• Annual Leave: Employees are entitled to a minimum of 30 calendar days of paid annual leave. This can be taken after 11 months of continuous employment. For certain professions, like teachers and scientists, this leave period is longer.
• Sick Leave: If an employee gets sick, they can take paid sick leave. They need to provide a medical certificate to be eligible. The state social insurance system covers the pay during this leave.
• Maternity Leave: Female employees receive 112 calendar days of paid maternity leave. This is typically split into 56 days before and 56 days after childbirth. In case of complications or multiple births, the leave can be extended.

Public holidays & regional holidays

Plan for your team to be out of the office on these national holidays.

Typical supplemental benefits

Here is a look at the benefits you must provide versus those you can choose to offer.

How an EOR can help with setting up benefits

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

An EOR already has a legal entity in Turkmenistan. This means you don't have to set one up yourself. They handle all the administrative tasks of managing employee benefits. This includes enrolling your employees in the required government programs.

An EOR ensures you comply with all local labor laws. They stay up-to-date with any changes in regulations so you don't have to. This saves you time and reduces risk. By partnering with an EOR, you can provide your team in Turkmenistan with competitive and compliant benefits from day one.

Letting an employee go in Turkmenistan involves specific legal steps. You must follow the country's labor laws to ensure a smooth and compliant process. This involves understanding the correct notice periods, calculating severance pay, and completing the necessary paperwork. Failing to follow these rules can lead to legal problems.

Notice periods

When ending an employment contract, you need to provide the correct amount of notice. The notice period can change based on who is ending the employment and why.

Here are the general guidelines:

• If the employee resigns: They must give you at least two weeks' written notice.
• If you terminate the contract: The notice period depends on the reason. For situations like company liquidation or reducing staff, you must give the employee at least two months' notice.
• General notice: The law requires a minimum of 14 days of notice for termination. However, notice periods often range from 14 to 30 days.

Severance pay

You may need to pay severance in certain situations, like when you make a position redundant. The amount of severance pay depends on how long the employee has worked for you. It can range from half a month's salary to two months' salary. On the day you terminate the employment, you must pay the employee any severance and other compensation they are owed.

How Rivermate handles compliant exits

When you partner with us, we manage the entire offboarding process for you. We make sure every termination is fully compliant with Turkmenistan's labor laws.

Here is how we help:

• We handle the details: We navigate the complexities of local regulations so you don't have to.
• Clear communication: We ensure all communication with the departing employee is handled correctly and professionally.
• Compliance checks: We review every step, from notice periods to final payments, to ensure everything follows the law.
• Paperwork management: We take care of the official orders and final documentation required for a legal termination.

We make sure the process is fair and compliant, which protects you from legal risks and allows for a respectful exit for your employee.

Navigating the visa and work permit process in Turkmenistan can be complex. The government maintains strict control over the labor market, making it essential to understand the requirements before you begin. For any foreign national seeking to work in the country, securing the proper documentation is a legal necessity. This process involves both a work permit, which authorizes employment, and a visa, which allows entry into the country. An employer in Turkmenistan must sponsor a foreign worker to initiate this process.

Employment visas & sponsorship realities

An Employer of Record (EOR) can be a valuable partner for companies looking to hire in Turkmenistan without establishing a local entity. An EOR legally employs workers on behalf of another company, managing visa applications, payroll, and compliance with local laws. This allows businesses to focus on their core operations instead of administrative hurdles.

Here's a breakdown of what an EOR can and cannot do in terms of sponsorship:

What an EOR can do:

• Act as the legal employer: An EOR can hire employees on your behalf, fulfilling the requirement of having a local sponsoring entity.
• Handle administrative tasks: EORs manage payroll, tax compliance, benefits, and legal obligations under Turkmenistan's labor laws.
• Navigate the local landscape: An EOR can help you navigate Turkmenistan's legal and regulatory environment, ensuring compliance and mitigating risks.

What an EOR cannot do:

• Guarantee visa approval: While an EOR can facilitate the application process, the final decision on visa issuance rests with the government of Turkmenistan.
• Bypass legal requirements: An EOR must operate within the bounds of Turkmenistan's laws and regulations.

Practical Routes for Employment:

The most practical route for employing someone in Turkmenistan is to partner with an EOR. This approach offers several advantages:

• Faster market entry: You can hire employees quickly without the time and expense of setting up a local entity.
• Reduced risk: An EOR helps you stay compliant with Turkmenistan's complex labor laws, minimizing legal and financial risks.
• Cost-effectiveness: You can avoid the high costs associated with entity registration and ongoing administrative maintenance.

Business travel compliance (short‑term visits)

For short-term business trips to Turkmenistan, a business visa is required. The application process involves several key steps and documents.

Key Requirements for a Business Visa:

• Letter of Invitation: You must have a letter of invitation from a host company in Turkmenistan, which has been approved by the Ministry of Foreign Affairs.
• Valid Passport: Your passport must be valid for at least six months beyond your intended stay and have at least two blank pages.
• Visa Application Form: You will need to complete and sign a visa application form.
• Passport-Sized Photograph: A recent passport-sized photograph with a light background is also required.
• UK Company Letter: If applying from the UK, a letter from your company is needed, detailing your employment status, the purpose of your trip, and the companies you will be visiting.

Registration upon Arrival:

If you plan to stay in Turkmenistan for more than three working days, you must register with the State Migration Service (SMS). Your hotel or the host company that provided your letter of invitation should assist with this process. You must also de-register with the SMS one day before your departure.