Employer of Record (EOR) Services in Kazakhstan
The Republic of Kazakhstan is a country located in the heart of Eurasia, it shares borders with Russia, China, Kyrgyzstan, Uzbekistan and Turkmenistan, and its western edge touches the Caspian Sea. Kazakhstan is an independent nation that was previously part of the USSR. Today, it is a member of several international intergovernmental organizations, including the Commonwealth of Independent States (CIS), the Eurasian Economic Union (EEU), the Shanghai Cooperation Organization (SCO), and the Collective Security Treaty Organization (CSTO).
The population of Kazakhstan is approximately 19.9 million. Over the past decade, it has grown by about 12%. The capital city, Astana, has a population of around 1.5 million. Another major city is Almaty, which served as the capital until 1997 and is currently home to about 2.2 million people.
Kazakhstan’s economy has shown steady growth in recent years, with GDP increasing by 3–4% annually. The economy is driven by the oil and gas industry, along with mineral extraction, metallurgy, and agriculture. The country’s GDP per capita has reached approximately 11,000 US dollars. Key contributors to this stable economic growth include government support for businesses and reforms in the tax and financial sectors. As of 2024, the average monthly salary was around 800 US dollars (about 430,000 tenge).
The country is considered relatively safe for living and doing business. It ranks 78th globally in terms of crime rates, comparable to countries like the Czech Republic, South Korea, and Cyprus.
The official currency of Kazakhstan is the Kazakhstani tenge (KZT). As of February 2025, the exchange rate was approximately 500 tenge to 1 USD. The National Bank of Kazakhstan is pursuing a tight monetary policy to contain inflation, which is projected to reach 9.5% in 2025.
Payroll Taxes
As of January 1, 2025, new tax legislation came into effect in Kazakhstan, introducing higher tax rates and increased social contributions.
New Tax Rates for Employees:
- Personal Income Tax:
- A flat rate of 10% on all income after allowable tax deductions, regardless of income level.
- Mandatory Pension Contributions:
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- 10% of annual income up to 4.25 million tenge (approximately 8,500 USD)
- 0% on income exceeding 4.25 million tenge
- Health Insurance Contributions:
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- 2% of annual income up to 850,000 tenge (approximately 1,700 USD)
- 0% on income exceeding 850,000 tenge
New Tax Rates for Employers:
- Social Tax:
- Flat rate of 11%, regardless of employee income level.
- Social Security Contributions:
- 5% of annual income up to 850,000 tenge (approximately 1,700 USD)
- 0% on income exceeding 850,000 tenge
- Mandatory Employer Pension Contributions:
- 5% of annual income up to 4.25 million tenge (approximately 8,500 USD)
- 0% on income exceeding 25 million tenge Health Insurance Fund Contributions:
- 3% of annual income up to 850,000 tenge (approximately 1,700 USD)
- 0% on income exceeding 850,000 tenge
Labor Law and Business Practice in Kazakhstan
Labor relations in Kazakhstan are governed by the Labor Code (LC), similar to the practice in many developed countries. The Code is designed to protect workers’ rights while also considering the interests of employers. The state exercises strict oversight to ensure compliance with labor laws, particularly in areas such as occupational safety, wages, and social security.
Employment Contract
Kazakhstan’s labor market is undergoing active digital transformation, with the use of electronic employment contracts rapidly expanding. The country operates a Unified Database of Employment Contracts, where registration of employment agreements is mandatory. Employers are required to register employment contracts within five working days of signing. Additionally, any amendments or termination of a contract must also be recorded in the Unified System. The database collects other relevant employment information as well, such as employee leave due to pregnancy or childbirth.
Employment agreements may be concluded in either Kazakh or Russian, the country’s second official language.
According to the Labor Code, an employment contract must be concluded in writing. The contract, along with any amendments or additions, may be executed in the form of an electronic document certified by an electronic digital signature. The employment contract must include the following key provisions:
- Full names and details of the parties: Including the tax identification numbers (TIN) of both the employer and the employee.
- Job description: Title of the position, specialty, profession, and required qualifications—i.e., the labor function.
- Place of work: The location where the employee will perform their duties.
- Term of the employment contract: Whether the contract is for a fixed or indefinite period.
- Working hours and rest time regime: The established schedule of work and rest, including breaks and days off.
- Compensation: The amount of remuneration and other terms of payment.
- Rights and obligations of both parties: The responsibilities and entitlements of both the employer and the employee.
- Procedures for amendment and termination: The process for modifying or ending the employment contract.
- Liability of the parties: The responsibilities and legal consequences for breaches by either party.
- Date and serial number of the contract: The official date of signing and a unique contract identifier.
The terms of an employment contract in Kazakhstan are governed by Article 30 of the Labor Code and may include the following:
- For an indefinite period
- For a fixed term of not less than one year
- For the duration of a specific task or project
- For the period of replacing a temporarily absent employee
- For the duration of seasonal employment
- For the duration permitted under the legislation of the Republic of Kazakhstan, based on a labor immigrant’s permit and a certificate of qualification for independent employment
Upon the expiration of a fixed-term employment contract of at least one year, the parties may agree to extend it either for an indefinite period or for another fixed term of not less than one year. A fixed-term employment contract may be extended no more than twice. If the employment relationship continues beyond that, the contract is deemed to have been concluded for an indefinite period.
Termination of an Employment Contract
The procedure for terminating an employment contract is governed by Article 50 of the Labor Code. An employment contract may be terminated by mutual agreement of the parties. If one party expresses the intention to terminate the contract in this manner, it must send a written notice to the other party. The receiving party, in turn, must respond in writing with its decision within three working days.
An employment contract may be terminated at the employer’s initiative under the following circumstances:
- Liquidation of the employer as a legal entity or cessation of business by an individual employer
- Reduction in the number of employees or downsizing of staff
- Decrease in the volume of work or services, resulting in a deterioration of the employer’s economic condition
- Employee’s failure to meet professional requirements due to insufficient qualifications
- Unsatisfactory performance during the probationary period
- Other grounds as stipulated by the Labor Code
The employee reserves the right to terminate the employment contract on their own initiative by notifying the employer at least one month in advance, except in certain special cases (Article 56, paragraph 3).
Article 131 of the Labor Code of the Republic of Kazakhstan governs compensation payments related to job loss. The employer must pay severance compensation equal to one average monthly salary in the following cases:
- When the employment contract is terminated at the employer’s initiative due to company liquidation;
- When the employment contract is terminated at the employer’s initiative due to a reduction in workforce or staffing;
- When the employment contract is terminated at the employee’s initiative because the employer failed to comply with the terms of the employment contract.
Upon termination of the employment contract due to a decrease in the volume of work performed and services provided, the severance compensation is equal to two average monthly salaries.
Salary Payment Terms
In Kazakhstan, wages must be paid at least once a month. The employer is required to pay wages no later than ten working days after the end of the reporting month.
Probation
When an employment contract is concluded, it may include a provision for a probationary period to assess the employee’s qualifications for the assigned duties. The probationary period begins on the start date specified in the employment contract. It is counted as part of the employee’s work experience and cannot exceed three months. However, for heads of organizations and their deputies, chief accountants and their deputies, as well as heads of branches and representative offices, the probationary period may be extended to six months.
Vacation
Employees are entitled to a main paid annual leave of 24 calendar days, unless a longer period is provided by the Labor Code, other regulatory legal acts of the Republic of Kazakhstan, collective or labor agreements, or internal employer policies.
Additional vacation days may be granted based on length of service, hazardous working conditions, or other qualifying factors.
Overtime
For time-based pay systems, overtime work must be compensated at an increased rate as specified in the employment or collective agreement, or by the employer’s internal regulations, but not less than 1.5 times the employee’s regular daily or hourly rate.
For piecework pay systems, overtime must be additionally compensated at no less than 50% of the employee’s established daily or hourly rate.
The total duration of overtime must not exceed 12 hours per month for employees on a four-day, five-day, or six-day work week. When summarized working time is applied, overtime must not exceed 120 hours per year.
Travel expenses
When an employee is sent on a business trip, the employer must cover travel expenses. These include transportation costs, daily allowances (per diem), and accommodation compensation.
The per diem rate is set by the employer but must not be lower than the legal minimum: 23,592 tenge (approximately 47 USD) per day for domestic trips and 31,456 tenge (approximately 63 USD) per day for international trips. These rates are current as of 2025 and are adjusted annually.
If the employer sets per diem amounts above these thresholds, the excess will be subject to payroll taxes. In addition, expenses that are not listed as deductible in the Tax Code—such as taxi fares (except to and from the airport), baggage transportation, baggage wrapping, and similar costs—are considered taxable.
Work Permits and Visas for Foreign Employees
Employers in Kazakhstan must obtain work permits to hire foreign nationals. However, certain categories of foreign employees are exempt from this requirement, including:
- Citizens of Eurasian Economic Union (EAEU) countries (Russia, Belarus, Kyrgyzstan, and Armenia);
- General Directors and Deputy Directors of companies that are 100% foreign-owned;
- Employees of companies registered in Kazakhstan’s offshore zones;
- Highly skilled professionals in high demand in Kazakhstan.
A work permit is valid only within the specific region of Kazakhstan where it was issued. Foreign employees are not allowed to work outside that region. If a foreign employee changes employers, a new work permit must be obtained.
A work permit is issued by the regional migration service. In certain regions of Kazakhstan, employers must first apply for an annual quota to hire foreign workers before initiating the work permit process.
To obtain a work permit, the employer must submit the following documents to the regional migration service:
- Completed application form;
- A copy of the foreign worker’s passport with a certified translation;
- A copy of the foreign employee’s diploma with a certified translation;
- A copy of the employment contract;
- The company’s constituent (registration) documents;
- A certificate confirming the foreign worker has undergone fingerprinting and photographing;
- Any additional documents upon request by the authorities.
The application review period is 15 calendar days. The state fee for issuing a work permit ranges from USD 1,000 to 1,400, depending on the worker’s specialty and the region of employment. The initial validity period of a work permit is one year, and it may be extended upon expiration.
To legalize their stay in Kazakhstan, foreign employees must obtain a Work Visa in addition to a work permit. Employees from visa-free countries must obtain a Temporary Residence Permit (TRP).
The permitted period of stay in Kazakhstan without a visa or temporary residence permit depends on the immigrant’s country of origin:
- Immigrants from countries with visa-free entry may stay in Kazakhstan for 14 to 90 calendar days, depending on their country of residence, during each 180-day period.
- Citizens of EAEU member states (Russia, Belarus, Kyrgyzstan, and Armenia) may stay for up to 90 calendar days in total during each 180-day period.
- Immigrants who enter Kazakhstan with a visa must follow the dates specified on the visa.
Citizens of 84 countries can enter Kazakhstan without a visa for a period of 14 to 90 days. The full list of these countries is available on the official website of the Migration Service of Kazakhstan: https://www.gov.kz/memleket/entities/mfa/press/article/details/6764?lang=en .
A work visa is issued at the Embassy of Kazakhstan in the foreign worker’s country of residence, based on an invitation from the employer. The processing time for the visa is 5 working days. As of 2025, the visa fee is approximately 225 US dollars.
To obtain a Temporary Residence Permit (TRP) for employment in Kazakhstan, foreign employees from EAEU member states (Russia, Belarus, Kyrgyzstan, and Armenia) must submit the following documents to the Public Service Center (a specialized government office for public services):
- Completed application for a temporary residence permit
- Receipt confirming payment of the state duty
- Passport with an official stamp confirming entry into Kazakhstan
- Certificate of fingerprinting and photographing
- Valid health insurance
- Consent from the landlord or property owner authorizing the foreign employee to be registered at the residential address for the duration of the TRP
- Arrival notification of the foreign citizen, submitted by the property owner
- Signed employment contract
- Employer’s company registration documents
Fingerprinting and photographing can be done directly at the Public Service Center. If insurance company terminals are available on-site, foreign employees can also obtain medical insurance there.
Atlas helps simplify this process through its comprehensive employment services in Kazakhstan, supporting companies that wish to hire employees in Kazakhstan. As a trusted provider of employer of record services in Kazakhstan, we ensure all requirements for foreign employees are met, including assistance with PEO services in Kazakhstan and coordination with employee relocation companies.
Atlas has extensive experience in securing visas and work permits for foreign employees. With our professional support, your team can obtain the necessary documentation in the shortest possible time, ensuring full compliance with local regulations. We streamline every stage of the process—making it easier for companies to hire employees in Kazakhstan through reliable employment services and trusted EOR service providers in Kazakhstan.
VAT on Employer of Record Services
Employer of Record (EOR) services in Kazakhstan provided to companies from other countries maybe exempted from VAT but the EOR contract should be drafted taking into account the local tax code.
For personalized guidance on VAT and EOR regulations, please contact our employment services specialists.
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