Employer of Record Services in Kyrgyzstan
Employer of Record (EOR) services in Kyrgyzstan refer to the temporary provision of labor by one company to another under a personnel lease agreement. This arrangement allows businesses to hire employees in Kyrgyzstan without setting up a local legal entity. EOR is increasingly in demand among foreign companies seeking to optimize personnel costs and gain greater flexibility in workforce management.
Kyrgyzstan, a landlocked country in Central Asia, borders Kazakhstan, Uzbekistan, Tajikistan, and China. Since gaining independence from the Soviet Union in 1991, the country has developed a population of approximately 6.7 million, with Bishkek as its capital and largest city.
The economy of Kyrgyzstan is primarily based on agriculture, including grain, fruit, and tobacco cultivation. Tourism also plays a growing role due to the country’s scenic landscapes, particularly around Lake Issyk-Kul. Despite its natural beauty and resources, Kyrgyzstan remains one of the less economically developed countries in the region, with many citizens depending on remittances from abroad.
Politically, Kyrgyzstan has experienced periodic instability and transitions of power. Nevertheless, it continues to pursue democratic development and integration into international bodies such as the Eurasian Economic Union (EAEU).The average monthly salary in Kyrgyzstan is approximately 200 to 300 US dollars, which makes the country an attractive option for companies looking to hire employees in Kyrgyzstan through cost-effective labor models.
Kyrgyzstan has a relatively low crime rate compared to many countries worldwide. For example, in some global safety indices, it ranks between 80 and 100 out of more than 180 countries, comparable to countries such as Türkiye and Argentina. This stability is a contributing factor to the growing interest in employer of record services in Kyrgyzstan and the use of EOR service providers for streamlined employment solutions.
Legal Regulation of EOR Services in Kyrgyzstan
Employer of record services in Kyrgyzstan are governed by the Labor Code and several supporting by-laws. The legal framework places strong emphasis on safeguarding the rights of leased employees, ensuring that EOR service providers in Kyrgyzstan comply with national labor laws and prevent any form of worker exploitation. This regulatory approach helps build trust in EOR services and supports ethical employment in Kyrgyzstan.
Taxation of Wages
As of August 1, 2024, the total tax burden on wages in Kyrgyzstan has been significantly reduced—from 37.5% to 27.5%. This reduction includes both social contributions and personal income tax. For employers using EOR services in Kyrgyzstan, this change lowers the overall cost of hiring local talent, making it more attractive to hire employees in Kyrgyzstan through legal employment services. In Kyrgyzstan, the taxation of salaries involves contributions from both employees and employers.
Employee Taxes
Employees are required to pay:
- Personal income tax at a flat rate of 10%, regardless of income level.
- Mandatory pension contributions at a fixed rate of 10%, also unaffected by salary amount.
Employer Taxes
Employers in Kyrgyzstan are obligated to contribute to social security at a flat rate of 2.25% of the employee’s salary, regardless of the salary level.
This simplified structure makes employment in Kyrgyzstan and EOR services in Kyrgyzstan more predictable for businesses. Partnering with an employer of record service provider in Kyrgyzstan ensures compliance with local tax obligations while helping companies hire employees in Kyrgyzstan efficiently.
Social Contributions and Tax Distribution in Kyrgyzstan
In Kyrgyzstan, a total of 12.5% in social contributions is deducted and paid jointly by the employee and the employer—10% from the employee and 2.5% from the employer. These contributions are distributed by the state across various national funds:
- Pension Insurance Fund – 9%
- State Accumulative Pension Fund – 2%
- Compulsory Medical Insurance Fund – 1%
- Workers’ Health Fund – 0.25%
Unlike many other countries, Kyrgyzstan does not have a compulsory unemployment insurance scheme. As a result, there is no unemployment insurance contribution required from either employers or employees.
Instead, social support for unemployed individuals is handled through state employment programs and welfare benefits, which are financed through the general national budget, rather than dedicated unemployment insurance funds.
These social contribution rates apply to most private sector enterprises in Kyrgyzstan. However, state-owned enterprises, mineral resource companies, and energy sector organizations are subject to higher social security contribution rates.
For businesses seeking to hire employees in Kyrgyzstan or partner with a reliable employer of record (EOR) service provider, understanding these distinctions is essential for full compliance with employment laws in Kyrgyzstan.
Labor Legislation
In 2025, the new Labor Code of the Kyrgyz Republic came into effect, modernizing labor legislation in response to a rapidly evolving labor market. Alongside traditional employment, new work formats have emerged, including freelancing, self-employment, and remote work. The inclusion of the term “Remote Work” in the Labor Code reflects the widespread practice of employees performing their duties outside the employer’s office, with communication taking place via electronic channels.
The updated Labor Code also enhances protections and severance entitlements in cases of workforce reductions. Employees must be notified at least 30 days in advance of termination and are entitled to severance pay of up to four times their average salary.
Employment Contract
An employment contract is the primary document that defines the rights and responsibilities of both the employee and the employer. In Kyrgyzstan, employment contracts must be in written form and typically include the following key elements:
- Job responsibilities
- Working conditions
- Salary and payment terms
- Working hours and schedule
- Social security guarantees
When using employer of record services in Kyrgyzstan, the employment contract is managed in full compliance with local labor laws, ensuring transparency and legal protection for both foreign companies and local employees.
Terms of the Employment Contract
Employment contracts in Kyrgyzstan can be:
- Indefinite – valid until terminated by either party;
- Fixed-term – concluded for a specified period not exceeding five years.
If a contract is signed for more than five years, it is automatically considered permanent.
In line with best practices in employment services Kyrgyzstan, the Labor Code allows fixed-term contracts only in specific situations where the employer has valid grounds to hire an employee for a limited period. Examples include project-based assignments or seasonal work.
Where no such justification exists, an indefinite contract must be offered. Employers using employer of record services Kyrgyzstan, PEO services in Kyrgyzstan, or seeking to hire employees in Kyrgyzstan must ensure employment agreements comply with national labor law. Leading employee relocation companies and EOR service providers Kyrgyzstan also follow these legal standards.
Salary Payment Terms
Salary payment terms in Kyrgyzstan require that salaries be paid at least once a month. The specific terms are defined by a collective agreement or outlined in the organization’s internal regulations. In line with common employment practices and standards followed by employer of record services Kyrgyzstan and PEO services in Kyrgyzstan, salary payments are typically made between the 1st and 10th of the following month.
Probation
When concluding an employment contract in Kyrgyzstan, the parties may agree to a probation period to assess the employee’s suitability for the assigned role. The probation condition must be clearly stated in the employment contract.
If the employment contract does not contain a probation clause, it means the employee is hired without a probationary period.
The maximum duration of probation is three months. However, for heads of organizations and their deputies, chief accountants and their deputies, as well as heads of branches, representative offices, and other separate structural units, the probation period may extend up to six months.
If the probation result is unsatisfactory, the employer has the right to terminate the employment contract before the end of the probation period, but must provide written notice at least three working days in advance. The employer is also required to state the specific reasons for considering the probation unsuccessful.
If the employee chooses to resign during the probation period, they may terminate the employment contract by submitting written notice to the employer at least three working days in advance.
Employers using employer of record services Kyrgyzstan, EOR service providers Kyrgyzstan, or PEO services in Kyrgyzstan must ensure probation terms comply with local labor laws when they hire employees in Kyrgyzstan.
Vacation
Basic annual paid leave in Kyrgyzstan must be at least 24 calendar days. Certain categories of employees—such as minors or those working in hazardous industries—are entitled to extended leave.
Maternity leave:
- Women are entitled to 126 calendar days of maternity leave (70 days before childbirth and 56 days after childbirth).
- The duration may be extended in cases of complicated childbirth or the birth of two or more children.
Parental leave:
- Parental leave is granted until the child reaches three years of age.
- Both the mother and father are eligible to use this leave.
Leave without pay:
- An employee may request unpaid leave by submitting an application to the employer.
- The decision to grant unpaid leave is at the employer’s discretion.
Employers using employer of record services Kyrgyzstan, employment services Kyrgyzstan, or EOR service providers Kyrgyzstan must ensure that all types of leave—paid or unpaid—comply with labor legislation when they hire employees in Kyrgyzstan. Leading PEO services in Kyrgyzstan and employee relocation companies also adhere to these standards.
The vacation schedule is prepared by the employer, taking into account both the employee’s preferences and operational needs. Employees must be notified of the vacation start date no later than two weeks in advance.
Vacation transfer:
Vacation may be transferred to the next working year for valid reasons. However, such a transfer is only allowed with the employee’s written consent.
Overtime
An employee may be required to work overtime only with his or her consent. Overtime must not exceed 4 hours per day and 20 hours per week.
Overtime Compensation
Overtime work must be compensated at an increased rate:
- For the first two hours – 1.5 times the regular pay
- For subsequent hours – 2 times the regular pay
By mutual agreement, overtime may also be compensated with additional paid leave instead of extra wages.
Travel Expenses
Employees sent on business trips are entitled to compensation for travel expenses, accommodation, and daily allowances. The specific amounts are determined by internal company policies or applicable industry standards.
Termination of an Employment Contract
An employment contract in Kyrgyzstan may be terminated on the following grounds:
- By mutual agreement of the parties;
- At the employer’s initiative – such as staff reduction, violation of labor discipline, or other lawful reasons;
- At the employee’s initiative – by submitting a resignation letter of their own free will;
- Upon expiry of the contract term – applicable to fixed-term contracts.
Notice Periods for Termination of Contract
The notice periods for terminating an employment contract in Kyrgyzstan are as follows:
- 30 calendar days – when the contract is terminated at the employer’s initiative;
- 14 calendar days – when the contract is terminated at the employee’s initiative.
Termination of an Employment Contract by Agreement of the Parties
An employment contract in Kyrgyzstan—whether concluded for an indefinite or fixed term—may be terminated at any time by mutual agreement of the parties, provided it is in writing.
The party wishing to terminate the contract on this basis must send a written proposal to the other party. The receiving party is required to respond in writing with a decision within three days.
Termination of a Fixed-Term Employment Contract
A fixed-term employment contract in Kyrgyzstan is terminated upon the expiration of its specified term.
An employment contract concluded for the duration of a specific job ends upon completion of that job.
A contract signed to cover the duties of a temporarily absent employee is terminated on the day the original employee returns to work.
An employment contract concluded for seasonal work is terminated at the end of the relevant season.
Termination of an Employment Contract at the Employee’s Initiative (Resignation)
An employee has the right to terminate an employment contract—whether indefinite or fixed-term—by submitting a written resignation notice to the employer at least 14 calendar days in advance.
After the notice period expires, the employee has the right to stop working, and the employer is obligated to issue the employee’s work record book and pay all outstanding entitlements.
By mutual agreement, the employment contract may be terminated before the end of the notice period.
During the notice period, the employee may withdraw their resignation, unless another person—who, under the Labor Code or other applicable laws, cannot be legally denied employment—has already been formally invited to fill the position in writing.
Staff Reduction (Layoff) in Kyrgyzstan
Staff reduction is one of the legal grounds for terminating an employment contract at the employer’s initiative, as outlined in Article 83 of the Labor Code of the Kyrgyz Republic.
The Labor Code prescribes a clear procedure that employers must follow when initiating a staff reduction:
- Issue a Staff Reduction Order: The employer must issue a formal order stating the reason for the reduction, the effective date, and the specific positions subject to layoff;
- Apply Preferential Retention Rights: When selecting employees for dismissal, preference must be given to those with higher performance and qualifications. If qualifications are equal, additional criteria defined in the collective agreement may be considered;
- Notify the Employee in Advance: The employee must be notified in person and in writing at least 30 calendar days before the dismissal date. For seasonal workers, the minimum notice period is 7 calendar days;
- Offer Vacant Positions: The employer must offer the employee any available positions. These can be listed in the same layoff notice or in a separate document. The vacancies offered do not have to match the employee’s qualifications. Lower-level or lower-paid roles may also be proposed;
- Issue a Termination Order: If the employee declines all offered vacancies, an official termination order must be issued on their final working day;
- Finalize All Payments: On the last day of employment, the employer must pay:
- Wages for days worked
- Compensation for unused vacation (if applicable)
- Any other legally required payments
- Record and Issue Work Book: An entry detailing the reason and legal basis for the termination must be made in the employee’s work record book.
- The wording must strictly follow the Labor Code or other relevant legislation.
Employees Protected from Dismissal During Staff Reduction
Certain categories of employees are legally protected from dismissal due to staff reduction. These include:
- Employees who are currently on vacation
- Employees who are temporarily disabled
- Pregnant employees
- Women with children under three years of age
- Single mothers raising a child under 14 years of age
(or a disabled child under 18 years of age) - Other persons raising the above-mentioned children without the mother
Severance Pay
When an employment contract is terminated due to staff reduction, the liquidation of the organization (legal entity) or its branch or representative office, or the termination of the employer’s activity (in the case of an individual), including cases of reorganization, the employee is entitled to severance pay equal to at least two average monthly salaries at the time of dismissal.
In addition, the employee is entitled to retain their average monthly salary for up to three months during the job search period. This benefit includes the severance pay, and it applies only if the employee registers with the state employment service as a job seeker within 10 working days of dismissal. For the first month, the severance pay (minimum two average salaries) is paid. During the second and third months, the employee continues to receive their average monthly salary as compensation.
If, after the three-month period, the employee is not provided with suitable employment or rejects two job offers, they are officially recognized as unemployed.
In total, an employer’s financial obligations for terminating an employee due to staff reduction can amount to up to five average monthly salaries, including:
- One month’s salary for the notice period
- Two months’ salary as severance pay, paid at the time of termination
- Two months’ salary as compensation during the second and third months of job search
Visa and Work Permit for Foreign Workers
To work in Kyrgyzstan, foreign nationals must obtain both a work permit and a work visa. The work permit and visa are initially issued for one year and may be extended.
To obtain a work permit for foreign employees, the employer must have an approved quota for hiring foreign specialists.
For highly qualified specialists, permits may be issued for up to three years, and a quota is not required.
The criteria for recognizing foreign workers as highly qualified specialists are:
- A monthly salary exceeding $1,500
- Higher education in the relevant field
- At least five years of relevant work experience
The process of obtaining a work permit in Kyrgyzstan is complex and requires a thorough understanding of local legislation. Applicants must prepare and submit a substantial list of documents. Approval depends on several factors, including the applicant’s citizenship, profession, the employer’s reputation, and the completeness of the submitted documentation.
The procedure involves four main steps:
- Preliminary approval for issuing a work permit – processing time: 7 working days
- Issuance of a temporary work visa (valid for 2 months) – processing time: 7 working days
- Issuance of the work permit – processing time: 7 working days
- Issuance of the main work visa – processing time: 7 working days
In general, the entire procedure takes approximately 28 working days, or 40 calendar days. By the third stage, that is, around 20 working days after the process begins, the foreign employee is allowed to start working. However, the employee must be physically present in Kyrgyzstan during this third stage (obtaining the work permit).
Step 1: Application Submission
At this stage, the employer must submit an application for a work permit to the Department of Migration and Labor. The application should include the following documents:
- A copy of the employee’s passport
- A copy of the employment contract
- A certificate of good conduct (police clearance)
- Proof of payment of the state duty
- Any additional documents that may be required on a case-by-case basis
State Duty Fee:
The amount of the state duty for a work permit varies depending on the applicant’s classification:
- For highly qualified specialists, the state duty is approximately €400
- For other categories of employees, the fee is significantly higher, often several times more
Step 2: Applying for a Temporary Work Visa (Preliminary)
At this stage, the foreign employee must apply for a temporary work visa at the Kyrgyz Embassy in their home country. This visa is valid for 2 months and allows the applicant to enter Kyrgyzstan to complete the remaining steps of the work permit process.
The following documents must be submitted along with the visa application form:
- A passport valid for at least 6 months beyond the intended period of stay
- Two color photographs (size: 3×4 cm)
- An invitation letter from the employer, officially registered with the Kyrgyz Migration Service. This document confirms the existence of an employment contract and the purpose of the stay
- The employment contract, which must outline key terms such as job responsibilities, salary, and duration of employment
- Medical insurance valid for the full duration of stay, covering essential health expenses related to illness or accidents
- Documents confirming professional qualifications, such as diplomas or certificates, to verify that the applicant meets the required job standards
- Proof of payment of the consular fee
Step 3: Obtaining the Basic Work Visa (Final Stage)
Once the work permit has been approved (Stage 3), the employee must apply for the basic work visa, which is valid for 1 year and allows full employment in Kyrgyzstan.
As part of this process, the applicant must undergo medical screening at an approved medical center. This includes mandatory testing for HIV/AIDS and other infectious diseases.
Kyrgyzstan is a member of the Eurasian Economic Union (EAEU), which also includes Kazakhstan, Russia, Belarus, and Armenia. Citizens of these countries have the right to work in Kyrgyzstan without a visa or work permit.
However, in order to reside and work legally, citizens of EAEU countries must obtain a temporary residence permit. This permit is issued for a period of one year and is renewable.
The procedure for obtaining a temporary residence permit is much simpler and less expensive compared to the standard visa and work permit process for foreign nationals outside the EAEU.
How Atlas Employment Can Help
Atlas Employment specializes in assisting foreign professionals and their employers with obtaining visas, work permits, and residence documentation in Kyrgyzstan.
With our extensive experience and up-to-date knowledge of immigration laws, we help streamline the process and resolve any bureaucratic issues efficiently—allowing your employees to begin working as soon as possible.
Other Features of Recruitment in Kyrgyzstan
Minimum Wage
As of 2025, the minimum wage in Kyrgyzstan is 2,865 soms (approximately $32.70).
Obtaining a Tax Number
A Tax Identification Number (TIN) is required for foreign employees to open a bank account and maintain proper financial records. Foreign workers can obtain a TIN from the local tax office, based on their temporary residence permit or work visa.
Opening a Bank Account
To open a bank account in Kyrgyzstan, a minimum set of documents is required. These include a valid identity document (passport or ID card) and a Tax Identification Number (TIN).
Foreign employees must also provide either:
- a temporary residence permit (for citizens of EAEC countries), or
- a work visa issued by the migration authorities.
VAT on Employment of Record Services
In certain cases, Employer of Record (EOR) services provided to foreign companies may be subject to VAT in Kyrgyzstan.
For specific information and advice, please contact the specialists at Atlas Employment.
Summary
Hiring employees in Kyrgyzstan requires a solid understanding of:
- local labor laws,
- visa and work permit procedures for foreign nationals,
- tax regulations,
- judicial practices in labor disputes, and
- local customs and business norms.
These factors can impact both the financial and administrative aspects of employment.
Atlas Employment is proud to offer Employer of Record (EOR) services in Kyrgyzstan to simplify and streamline the hiring process for international businesses.
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
