Basic Information

Social Contribution

Employer Contribution

Social Insurance: 3.5% (until December 31, 2024)  

(Maximum monthly deduction is up to 7 times the minimum wage)  

(Foreigners without permanent residency are exempt from social insurance contributions)  

Social insurance contributions can offset social tax, without additional tax burden.

Health Insurance: 3%  

(The contribution cannot exceed 10 times the minimum wage for the year)

Social Tax: 9.5% (until December 31, 2024)  

(No upper limit on the tax base)

Employee Pension Fund: 5%  

(Contribution cannot be less than the minimum wage for the year, nor exceed 50 times the minimum wage for the year)  

(Foreigners without permanent residency in Kazakhstan are not required to participate in the pension system)

Social Insurance for Hazardous Work: 5%  

Employers withhold personal income tax and pension contributions from employees' total wages, while social tax, social insurance, and mandatory health insurance are paid directly by the employer.

Total Employer Cost: 12.5% - 26%

Employee Contribution

Employee Social Insurance Details:  

Health Insurance: 2%  

Pension Insurance: 10%  

Total Employee Contribution: 12%

(Late payment penalties: 1.25 times the daily refinancing rate of the National Bank of Kazakhstan)

Personal Income Tax

10% (Non-tax residents may be subject to different rates, such as 15% on dividend income, interest, and capital gains, and 20% on other types of income.)

Tax Residents of Kazakhstan:

Individuals Permanently Residing in Kazakhstan: Permanent residency means staying in Kazakhstan for at least 183 days within any continuous 12-month period by the end of the current tax year (including arrival and departure days).

Individuals with a Centre of Vital Interests in Kazakhstan: A Centre of Vital Interests is when an individual meets the following criteria in Kazakhstan:

Payroll

Payroll Cycle

Wages must be paid in Kazakhstani tenge at least once a month, no later than the first 10 days of the following month. The payment date is set by the collective agreement or employment contract.

Employers must provide a monthly written or electronic statement outlining the salary components, deductions, and their reasons.

13 Salary

No.

Working Time

Standard Working Hours (full time)

Standard working hours are 40 hours per week, with 8 hours per day.

Work week options are:

Five-day workweek with weekends off, or a six-day workweek with one day off.

40-hour workweek: five days of 7 hours plus one day of 5 hours, or

36-hour workweek: 6 hours per day. 

Both work hour systems are implemented in Kazakhstan.

Overtime

Overtime limits are:

No more than 2 hours per day

No more than 12 hours per month

No more than 120 hours per year

Overtime must be confirmed in writing by both employer and employee.

Overtime pay rates:

For hourly workers: at least 150% of their daily wage

For piece-rate workers: at least 50% of their daily rate

For weekend and holiday overtime: at least 150% of their daily wage

For night shifts: at least 150% of their wage

Holidays

Public Holidays

There are 12 public holidays.

Working on weekends or public holidays requires written consent from the employee. For such work, compensatory time off or additional compensation must be provided, with the compensation amount being at least 1.5 times the employee's daily wage.

Annual Leave

Employees are entitled to at least 24 days of paid annual leave per year (excluding public holidays). Salaries for leave must be paid at least 3 working days in advance. Leave can be taken at any time, including during the first year, and can be split into segments of at least 14 days.

Un used leave carries over to the next year. Upon contract termination, employees receive compensation for unused leave days, calculated at their average wage.

Sick Leave

Ordinary sick leave is up to 3 days, and for flu or similar illnesses, it can be up to 6 days. Sick leave can be extended to a maximum of 20 days based on health conditions.

Sick leave compensation is calculated as the average daily wage times the number of sick leave days. The monthly compensation cannot exceed 25 times the Monthly Calculation Index, which is 92,300 KZT.

Maternity Leave

Mothers are entitled to 126 days of paid maternity leave: 70 days before the due date and 56 days after childbirth (or 70 days for difficult deliveries or multiple births). 

In nuclear test areas, maternity leave extends to 170 days: 91 days before the due date and 79 days after childbirth (or 93 days for difficult deliveries or multiple births). 

The national social security agency pays for maternity and parental leave.

Parental Leave

One parent can take 56 days of paid parental leave starting from the child's birth. Parents can agree on how to divide and use this leave between themselves.

Other Holidays

Employees are entitled to various additional leave options: unpaid leave to care for a child until the child turns 3 years old, and up to 5 days of unpaid leave for the death of a close relative or for marriage.

Labor Contract

Labor Contract Type

Labor contracts are divided into fixed-term contracts and permanent contracts.

Fixed-term contract: Minimum 1 year.

After expiry, the contract may be extended to an indefinite term or renewed for over 1 year with mutual consent. If neither party notifies expiration, it will be automatically renewed for the same duration. Fixed-term contracts can only be renewed twice; beyond that, they become permanent contract.

Probation Period 

The probation period is up to 3 months, extendable to 6 months for senior or specialized roles.

During probation, either party may terminate the contract without notice. Notice can be given one day in advance or employees can resign immediately after a written or emailed request. Employers must provide written notice with valid performance-related reasons for termination.

Termination

Employer Proposal

At least 1 month's written notice is required. With the employee's written consent, the contract may be terminated before the notice period ends.

Employee Proposal

A minimum of 1 month's written notice is required to the employer. The contract may end earlier with the employer's consent. The employee can withdraw their resignation during the notice period.

For mutual termination, one party must notify the other, who must respond in writing within 3 working days.

Severance Pay

In cases of company bankruptcy or downsizing, or if employees resign due to employer issues, they receive severance equal to one month's salary. For mutual terminations, compensation includes 2 months' salary and payment for unused annual leave.