Employer of Record Services in Uzbekistan
Uzbekistan, located in Central Asia, is a former Soviet republic with a population of over 35 million people, making it one of the most populous countries in the region. Its capital and largest city, Tashkent, is home to approximately 2.6 million residents and serves as the nation’s economic and administrative hub.
Economic Overview
Uzbekistan’s economy has demonstrated consistent growth in recent years, with annual GDP growth rates between 5% and 7%. The country is diversifying its economy by strengthening key sectors such as:
- Agriculture – particularly cotton production
- Mining – including gold and natural gas
- Light manufacturing
- Food processing and industrial production
Foreign investment has been a major driver of economic development, with the government taking proactive steps to attract international businesses.
Workforce and Salary Insights
The average monthly salary in Uzbekistan ranges between $300 and $400 USD, depending on the industry and region. Unemployment levels remain relatively low, although youth employment continues to be a challenge in some sectors.
The local currency is the Uzbek sum (UZS). As of February 2025, the exchange rate stood at approximately 11,000 UZS per 1 USD, with a general trend toward gradual devaluation over time.
Administrative Environment and Digital Infrastructure
Uzbekistan is modernizing its public administration and expanding access to digital services. Many bureaucratic processes; including business registration, licensing, and tax filings, can now be completed online via government e-portals, making market entry and local compliance more manageable for foreign employers.
International Cooperation and Business Climate
Uzbekistan maintains strong economic and diplomatic ties through its involvement in the Commonwealth of Independent States (CIS) and the Shanghai Cooperation Organisation (SCO). It is actively enhancing relationships with trade and investment partners in Europe, Asia, and the Middle East, making it a strategic location for regional business expansion.
Safety and Travel Considerations
The country is widely considered one of the safest destinations in Central Asia. Incidents involving foreign nationals are rare. Nonetheless, standard precautions; such as safeguarding valuables and avoiding crowded areas prone to pickpocketing are advisable.
Legislation Regulating Employer of Record Services in Uzbekistan
Employer of Record (EOR) services refer to the practice of hiring employees through a third-party provider. In this arrangement, workers are officially on the payroll of one company but perform their duties for another. EOR services help businesses reduce personnel costs, avoid complications related to employment formalities, and minimize risks associated with labor law compliance.
Benefits for Employers:
- Reduced administrative burden: The EOR service provider handles all documentation related to employee work activities.
- Legal risk mitigation: The EOR assumes responsibility for complying with labor regulations.
- Workforce flexibility: Companies can quickly scale their workforce up or down based on operational needs.
Benefits for Employees:
- Employment opportunities without long-term contracts: Workers can be hired for short-term or project-based roles.
- Official employment and social protections: Employees receive legal status and social guarantees through the EOR provider.
While Uzbekistan’s Labor Code does not specifically regulate Employer of Record services, most EOR arrangements rely on general provisions of civil and labor law. However, certain regulations related to temporary employment and subcontracting may be applicable in the context of EOR relationships.
Salary Taxation in Uzbekistan
In Uzbekistan, both employees and employers are required to make social and tax contributions based on the employee’s gross salary.
Employee Contributions
- Personal Income Tax – 12%
- Pension Fund Contribution – 0.1%
Employer Contributions
- Social Contributions – 12%
These deductions are calculated based on the total accrued wages and are regulated by the current tax and labor laws of Uzbekistan.
Labor Legislation of Uzbekistan
The labor legislation of Uzbekistan is governed by the Labor Code, enacted by the Law of the Republic of Uzbekistan on October 28, 2022, No. ZRU-798. The Code is designed to protect workers’ rights and ensure a fair balance between employee protections and employer interests.
Employment Contract
In Uzbekistan, an employment contract must be concluded in writing and prepared in two copies, each signed by both parties. One copy is given to the employee, and the other is kept by the employer.
As of January 4, 2025, under Cabinet of Ministers Resolution No. 891 dated December 27, 2024, employers are required to register all labor contracts, including electronic versions, in the interdepartmental hardware and software platform known as the “Unified National Labor System” (UNLS).
Terms of the Employment Contract
An employment contract may be concluded for:
- an indefinite period;
- a fixed term of no more than 3 years.
To conclude a fixed-term contract, the employer must have valid grounds as defined by the Labor Code. In particular, a fixed-term employment contract may be concluded in the following cases:
- to temporarily replace an absent employee;
- for work of a temporary nature (up to two months);
- to perform seasonal work;
- to carry out work beyond the employer’s regular activities (e.g., reconstruction, installation, commissioning, and similar projects);
- to perform a clearly defined urgent task when its exact completion date cannot be predetermined;
- with foreign citizens and stateless persons who have lawfully entered Uzbekistan for employment purposes;
- with employees hired by microfirms or other small business entities;
- with executive-level managers;
- in other specific cases provided by law.
If none of the above grounds apply, the employment contract is considered to have been concluded for an indefinite period.
A fixed-term employment contract may be extended multiple times. However, the total duration of such a contract, including all extensions, must not exceed five years. After this period, the contract is considered open-ended.
A fixed-term employment contract is terminated upon the expiration of its term. The party initiating the termination must provide written notice to the other party at least three calendar days before the contract expires, except in cases where the contract was concluded to temporarily replace an absent employee whose position is being held for their return.
If, upon expiration, the employment relationship continues and neither party requests termination within one week, the contract is deemed to have been converted into an open-ended (indefinite) contract.
A contract concluded for the duration of an absent employee’s leave ends on the day the employee returns to work.
Probation Period
An employment contract may include a probation period for the following purposes:
- To assess the employee’s suitability for the assigned role.
- To allow the employee to decide whether to continue working under the terms of the contract.
The probation period must be explicitly stated in the employment contract. If no such clause is included, the employee is considered to have been hired without a probation period.
The probation period must not exceed three months. However, for heads of organizations, their deputies, chief accountants, and heads of separate divisions, the probation period may be extended to a maximum of six months.
Any time during which the employee is temporarily disabled or otherwise absent from work is not counted toward the probation period.
Termination of an Employment Contract
An employment contract may be terminated at the initiative of either the employer or the employee.
The employer may terminate the contract on the following grounds:
- Staff reduction
- Violation of labor discipline
- Failure to perform work duties
- Expiry of the employment contract
- Liquidation of the enterprise
An employee has the right to terminate an open-ended contract, as well as a fixed-term contract before its expiration, by submitting a written notice to the employer at least fourteen calendar days in advance.
When an employment contract is terminated, a final settlement must be made with the employee. This includes payment for:
- Wages for the number of days actually worked in the final month
- Compensation for all unused basic and additional vacation days
- Any other payments provided under labor law, other legal regulations, or the employment contract
All amounts due to the employee must be paid on the day the employment contract is terminated.
Severance Pay
Severance pay is provided upon termination of the employment contract in the following cases:
- At the employer’s initiative, except when termination is due to the employee’s unlawful actions or inaction
- In the event of enterprise liquidation
- If the employee refuses to continue working under new conditions
- If the employee refuses to relocate with the employer to a different location
- If the employee refuses to continue working due to a change in the organization’s ownership
The amount of severance pay depends on the employee’s length of service with the employer and must be no less than:
- 50% of the average monthly salary – for employees with up to 3 years of service
- 75% of the average monthly salary – for employees with 3 to 5 years of service
- 100% of the average monthly salary – for employees with 5 to 10 years of service
- 150% of the average monthly salary – for employees with 10 to 15 years of service
- 200% of the average monthly salary – for employees with more than 15 years of service
Salary Payment Terms
The terms of wage payment are defined in a collective agreement or the employer’s internal policies. In the absence of both, the employment contract applies. Wages must be paid at least twice per month. Monthly wages are divided into two parts; an advance payment and the remaining balance, with a gap of no more than sixteen days between them, as a general rule.
Annual Leave (Vacation)
The minimum duration of annual basic labor leave is 21 calendar days.
Maternity Leave
A woman is entitled to maternity leave of 70 calendar days before childbirth and 56 calendar days after childbirth. In cases of complicated delivery or the birth of two or more children, postnatal leave is extended to 70 calendar days. Maternity benefits are paid in accordance with the law, but not less than 75% of the average monthly salary.
Maternity leave is calculated in total and granted in full, regardless of the number of days actually used before childbirth.
After maternity leave, upon request, a woman is granted childcare leave until the child reaches two years of age, with benefit payments provided according to regulations set by the Cabinet of Ministers of the Republic of Uzbekistan.
At her request, a woman may also be granted additional unpaid leave to care for the child until the child turns three.
Overtime Work
Overtime work refers to any work performed by an employee beyond their established working hours, as directed by the employer.
The duration of overtime must not exceed four hours over two consecutive days, or two hours per day for roles with unfavorable working conditions. The total annual overtime must not exceed 120 hours.
Employers are required to maintain accurate records of all overtime hours worked by employees.
Overtime is compensated at no less than twice the regular rate of pay.
At the employee’s request, overtime may instead be compensated with additional rest time equal to the hours worked. In such cases, the overtime is paid at the regular rate, and the additional rest time is unpaid.
Travel Expenses
When an employee is sent on a business trip, the employer must reimburse the following:
- Travel costs
- Accommodation expenses
- Daily allowance for living outside the employee’s place of permanent residence
- Other expenses incurred by the employee with the employer’s permission or awareness
The reimbursement amounts for business trip expenses are set by a collective agreement or the employer’s policies. However, the total reimbursement cannot be less than the amount established by the Cabinet of Ministers of the Republic of Uzbekistan for organizations funded by the state budget.
Visas and Work Permits for Foreign Employees
To be employed in Uzbekistan, a foreign (expat) employee must have:
- A work visa
- A work permit
Both documents are required for legal employment and residence in the country.
General Procedure
- Step 1: Obtain a B-2 business visa for the foreign specialist (10 to 30 working days)
- Step 2: Relocate the employee and complete registration upon arrival in Uzbekistan (1 working day)
- Step 3: Obtain a work permit in Uzbekistan (up to 20 working days)
- Step 4: Obtain an E-type work visa after the B-2 visa expires (up to 15 working days)
Obtaining a Work Permit
At this stage, we obtain confirmation of the right to work in the Republic of Uzbekistan, commonly referred to as a work permit. This confirmation is issued by the Agency for External Labor Migration under the Ministry of Employment and Labor Relations of the Republic of Uzbekistan.
To obtain confirmation, the inviting company must submit the following documents to the Agency for External Labor Migration:
- A completed application by the foreign citizen, using the official form
- A copy of the foreign citizen’s passport
- A copy of the entry visa (required only for citizens of countries with a visa regime)
- Documents confirming the foreign citizen’s qualifications, such as educational diplomas
- A draft employment contract showing a preliminary agreement with the employer, including proposed job conditions and salary
- An undertaking signed by the company’s director, in the official format
- Two color passport-size photographs
During the review, the Territorial Labor Authority evaluates whether hiring foreign citizens is appropriate, considering the availability of local labor for the listed positions. Simultaneously, the Agency assesses whether the number and type of foreign hires align with the employer’s actual workforce needs.
If approved, the processing time for confirmation typically ranges from 20 to 30 working days.
A simplified procedure is available for highly qualified and qualified foreign specialists.
To obtain a work permit, a state fee of USD 400 to 1,200 is required. The higher the worker’s qualification, the lower the fee.
Once the work permit is issued, the foreign employee is legally authorized to start work.
Atlas Implement provides expert support in securing visas and work permits for foreign employees. With years of experience, we help expedite documentation processes, ensuring your specialists can begin work quickly and without complications.
Obtaining a Taxpayer Identification Number (TIN)
Why is a Taxpayer Identification Number (TIN) required for a foreign national?
- To execute an employment contract
- To open a bank account
- To pay taxes in Uzbekistan
To obtain a TIN, the following documents are required:
- A Passport with notarized translation
- A Copy of the visa or migration card
- A Completed application form (provided by the tax office).
The TIN is issued either at the tax office or through the Unified Portal of State Services (my.gov.uz). It is usually provided on the same day of application, and no state fee is charged.
Opening a Bank Account in Uzbekistan
Salary payments must be made exclusively in Uzbek soms to accounts held in Uzbek banks. To receive a salary, a foreign employee must have a bank account in Uzbekistan. To open a bank account, a foreign employee must provide the following documents:
- Taxpayer Identification Number (TIN)
- Passport with notarized translation
- Proof of residential registration
The account is typically opened within 1 to 3 business days.
VAT on EOR Services
Atlas Implement has extensive experience providing EOR services in Uzbekistan.
We offer competitive pricing, high-quality service, and comprehensive support:
- €200 – Local employee
- €250 – Foreign employee
Contact Us
We are happy to answer any questions via WhatsApp or phone at +7 707 727 7874, or by email at alexo@employment-atlas.com
