Hire in Kazakhstan
Begin your journey with essential human resources strategies and recruitment insights for Kazakhstan here.
Currency of Kazakhstan
Kazakhstani Tenge (KZT)
The Capital of Kazakhstan
Nur-Sultan
Time Zone in Kazakhstan
GMT + 6
Important Facts About the Country of Kazakhstan
Introduction to Kazakhstan
Kazakhstan, situated at the crossroads of Central Asia and Eastern Europe, is a transcontinental nation with a predominantly landlocked geography. Astana serves as its capital, and Almaty stands out as the largest city. Despite a population of 19 million, Kazakhstan exhibits a low population density, with less than six individuals per square kilometer. Renowned for its influential position in Central Asia, the country owes much of its prominence to a flourishing oil and gas sector and extensive mineral wealth.
What to Know about Kazakhstan’s Geography
Kazakhstan, an expansive nation spanning 2,700,000 square kilometers, rivals the size of Western Europe. As the largest landlocked country globally, it holds the ninth position in total area. Kazakhstan shares its borders with Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbekistan to the south, and Turkmenistan to the southwest. Additionally, it boasts a coastline along the Caspian Sea.
Climate in Kazakhstan
Kazakhstan encounters a harsh continental climate marked by sweltering summers and exceptionally harsh winters. Astana, the capital city, stands as the second-coldest capital globally, surpassed only by Ulaanbaatar in Mongolia. The country exhibits precipitation levels varying from arid to semi-arid, with winters often characterized by notable dryness.
The Culture of Kazakhstan
The cultural heritage of Kazakhstan bears the imprint of the nomadic traditions of Turkic peoples. In the post-Soviet period, Kazakhstan’s modern culture has seen significant growth. The traditional Kazakh lifestyle has been influenced not just by neighboring nations like Russia and China but also by Western societies.
Religions Observed in Kazakhstan
The predominant religious affiliation in Kazakhstan is Sunni Islam, making it the most practiced religion in the country. Additionally, there is a Christian presence, primarily represented by the Russian Orthodox Church as the largest Christian denomination. Smaller communities of other religions, including Judaism, Buddhism, and Hinduism, are also present in Kazakhstan.
Languages Spoken in Kazakhstan
Kazakhstan is a bilingual nation where Kazakh and Russian are prevalent languages. Although approximately 60% of the population speaks Kazakh as their first language, Russian holds greater prominence in business, government, and interethnic communication. Both languages enjoy equal status as the “state language” of the country.
Kazakhstan Human Resources at a Glance
Employment Law Protections in Kazakhstan
The key legislation overseeing employment associations in Kazakhstan is the Labor Code 2015. Additionally, critical regulations include:
- The Kazakhstan Constitution
- The Law on Migration
- The Law on Mandatory Social Security
- The Law on Collective Labour Disputes and Strikes (July 8, 1996)
- The Law on Collective Agreements
Employment Contracts in Kazakhstan
Employment contracts in Kazakhstan can be established for various periods, including an indefinite term, a definite term, or for the completion of specific work or temporary replacement of an absent worker. If the contract duration is unspecified, it defaults to an indefinite term. These contracts must be documented in Kazakh, Russian, and English if necessary.
The contract should encompass essential information:
**For the Employer:**
- Full name and address
- State registration number and date
- Business identification number
**For the Employee:**
- Full name and permanent residence
- Identification document details (title, number, date of issue)
- Individual identification number
The employment contract should detail:
- Job description based on profession or qualification
- Workplace location
- Work conditions description
- Commencement date
- Working hours and rest periods
- Contract term
- Contract date and serial number
- Remuneration terms
- Rights and obligations of both parties
- Procedures for contract amendment and termination
Additional provisions, aligning with Kazakhstan’s laws, can be included with mutual agreement between the employer and employee.
Fixed Term Contacts for Kazakhstan Employees
Generally, fixed-term employment agreements in Kazakhstan typically span from three months to one year. Notably, smaller enterprises with fewer than 250 employees are not bound by the one-year fixed-term stipulations. Upon the expiration of a work contract, it can either be prolonged without a specified duration or extended for at least one year. However, such extensions are restricted to two times, with an exception for smaller businesses exempt from these limitations.
Pre-Employment Checks
Employers have the right to obtain pertinent information directly from employees, but they are prohibited from obtaining an applicant’s criminal or credit history directly from public sources. Employers are at liberty to request a medical examination as a prerequisite for employment, and they may also conduct alcohol and drug testing on prospective hires.
Kazakhstan's Guidelines Regarding Probation Period/Trial Period
The probationary period is limited to three months, although it may be extended to six months for specific roles such as chief executives, chief accountants, and heads of branches or representative offices. In cases where the fixed-term contract spans only three months, the probationary period is shortened to just 14 days.
Regulations and Rules Regarding Working Hours in Kazakhstan
The Labor Code stipulates that regular working hours should not exceed 40 hours per week or eight hours per day. Overtime work is limited to a maximum of two hours per day, with a total monthly cap of 12 hours and an annual limit of 120 hours for all employees.
Upon mutual agreement in the employment contract, a flexible work schedule can be implemented, allowing for a four-day workweek with the option to alternate with a five-day or six-day workweek. Sunday is typically designated as the day off, with the specific arrangement of the second or third day off determined by a collective agreement or labor regulations in the case of a five-day or four-day workweek.
For jobs with unique requirements that prevent adherence to standard working-hour regulations, such as shift work or cumulative hour schemes, the Labor Code permits flexibility to accommodate the nature of the work.
Kazakhstan Laws Regarding Overtime
Remuneration for overtime work is set at a minimum of 1.5 times the standard rate, and for work conducted on holidays or days off, the compensation should be at least double the regular rate. Night work, occurring between 10:00 p.m. and 6:00 a.m., is subject to a compensation rate of 1.5 times the standard rate.
In lieu of receiving overtime pay for work performed on holidays or days off, employees have the option to request a compensatory day off.
Termination
An employer is only authorized to terminate an employee unilaterally if there exists a valid and justifiable reason, as outlined in the Labor Code. The code provides a comprehensive list of acceptable grounds for an employer to make such a decision.
In situations where termination is prompted by factors such as downsizing, output reduction, or company liquidation, the employer is required to inform the labor authority at least one month in advance.
Employees who are currently on temporary sick leave or annual leave are protected from dismissal. Additionally, specific categories of employees, including pregnant women, women with children under three years of age, single mothers with children under 14 (or those with disabled children under 18 years of age), or individuals caring for orphaned children, cannot be terminated due to an employer’s deteriorating economic situation.
Kazakhstan's Requirements Regarding Notice Periods
If an employer decides to terminate an employee’s contract due to their company’s liquidation or downsizing of employees, a minimum notice period of one month must be provided before the termination. Nevertheless, if the employee gives written consent, earlier termination is permissible.
Exceptions to the notice requirement exist in cases where employment termination is based on poor performance during the probation period, as stipulated in the Labor Code.
Under specific circumstances, an employment contract may grant the employer the right to terminate an employee without notice, provided that severance compensation, predetermined within the contract, is offered.
Redundancy/Severance Pay in Kazakhstan
Severance pay is applicable under certain circumstances. In instances where the employer undergoes liquidation, downsizes its workforce, or violates the terms of the employment agreement, the employee is eligible to receive one average monthly salary.
If an employee is terminated due to diminished production, work, or services leading to the employer’s financial hardship, they are entitled to receive two average monthly salaries.
Employment contracts and collective bargaining agreements have the potential to provide more extensive severance compensation. Additionally, a contract may authorize the employer to terminate an employee without notice, accompanied by pre-determined severance pay.
Post-Termination Restraints/Restrictive Covenants
Agreements related to non-compete and non-solicitation, which prevent employees from participating in activities that could harm their employer, are permitted under the labor laws of the country.
Data Protection
The protection of personal information for employees is ensured by both the Labor Code and the Personal Data Protection Act. According to the Law on Personal Data Protection, employers must obtain explicit consent from employees or job applicants before collecting and managing their personal information.
Tax and Social Security Information for Employers in Kazakhstan
Personal Income Tax in Kazakhstan
If an individual, whether a citizen of Kazakhstan or a foreign national, resides in Kazakhstan for a minimum of 183 days within a 12-month period, they are designated as a tax resident. Tax residents are liable for taxes on their global income, whereas non-residents are solely taxed on income earned within Kazakhstan. The income tax rate for individuals in Kazakhstan is a uniform 10%.
Employers are tasked with deducting and remitting monthly income tax and pension fund contributions on behalf of their employees, with an exception for foreign nationals who are exempt from pension fund contributions.
Social Security in Kazakhstan
In Kazakhstan, social security programs encompass social insurance, medical insurance, and pension contributions, with the Minimum Monthly Wage (MMW) established at KZT 70,000 for the year 2023.
Type | Employee Contribution (%) | Employer Contribution (%) | Salary Cap |
---|---|---|---|
Obligatory Pension Fund (‘OPF’) | 10 | 5 | 50 times MMW |
Obligatory Medical Insurance Contributions (‘OMIC’) | 2 | 3 | 10 time MMW |
Obligatory Social Insurance Contributions (‘OSIC’) | N/A | 3.5 | 7 times MMW |
Social security provisions in Kazakhstan extend to individuals possessing a residence permit, citizens of Kazakhstan, and citizens of member states of the Eurasian Economic Union.
Please note that the mentioned rates are general guidelines, and the actual rates may vary.
Important Information for Kazakhstan Employees
Salary Payment
According to the law, employees are required to receive their salary at least once a month. The specific payment date is outlined in the employment contract or collective bargaining agreement. If the designated payment date falls on a day off or holiday, the payment is expected on the last business day before that date. Payments should occur at the workplace unless the contract specifies alternative methods, such as bank transfers, which must be explicitly mentioned in the agreement.
Payslip
While not obligatory, it is recommended to provide payslips that offer a detailed breakdown of an employee’s remuneration.
Annual Leave
All employees are entitled to a minimum of 24 calendar days of paid annual leave per year. However, an additional six days of paid annual leave must be granted to employees falling into the following categories:
- Employees engaged in dangerous work or working under damaging or hazardous conditions.
- Employees with disabilities.
Mutual agreement between employees and employers can allow for the division of annual leave into multiple segments, provided that one portion is not less than 14 days. However, the Labor Code permits the carryover of annual leave days to the next year only in cases of temporary incapacity to work (such as sick leave) and maternity leave. Vacation postponement is restricted to a maximum of two consecutive years, and the Labor Code explicitly prohibits the denial of paid annual leave for two consecutive years.
All employees are entitled to a minimum of 24 calendar days of paid annual leave per year. However, an additional six days of paid annual leave must be granted to employees falling into the following categories:
- Employees engaged in dangerous work or working under damaging or hazardous conditions.
- Employees with disabilities.
Mutual agreement between employees and employers can allow for the division of annual leave into multiple segments, provided that one portion is not less than 14 days. However, the Labor Code permits the carryover of annual leave days to the next year only in cases of temporary incapacity to work (such as sick leave) and maternity leave. Vacation postponement is restricted to a maximum of two consecutive years, and the Labor Code explicitly prohibits the denial of paid annual leave for two consecutive years.
Sick Leave
Each employee is entitled to sick leave and corresponding sick pay, contingent upon the submission of a medical certificate issued by a licensed doctor. The law does not specify a fixed duration for sick leave.
If an employee exceeds two months of sick leave, termination may be considered, unless the illness falls under a law permitting an extended period of sick leave.
Employers are obligated to provide sick pay, calculated by multiplying the employee’s average daily wage by the number of days missed due to illness. The sick pay is capped at 25 times the Monthly Calculation Index (MCI) per month, with the MCI amounting to KZT 3,450 in 2023.
Maternity & Parental Leave
Maternity leave in Kazakhstan typically commences 70 days before the anticipated date of childbirth and extends for 56 days postpartum (or 70 days before and after childbirth in case of complications or multiple births). Under specific circumstances, such as prolonged residence conditions or delivery complications, the duration of maternity leave may be extended to 91 days before and 93 days after childbirth. Both the employer and social security contribute to payment during maternity leave.
Employers are also mandated to grant unpaid leave to employees for childcare purposes for children up to three years old. To initiate this leave, employees must submit a written request specifying the duration and provide documentation verifying the child’s birth.
Adoption leave is granted to employees who adopt a newborn child. The leave begins on the day of adoption and lasts for 56 days after the adoption. Both the employer and social security collaboratively contribute to the pay during the adoption leave.
Unpaid Leave
Employees have the privilege of taking up to five days of unpaid leave for specific life events, including marriage, childbirth, or the loss of a close relative. This entitlement may be explicitly stated in employment contracts or collective bargaining agreements. Employers are obligated to approve such leave upon the employee’s request and are prohibited from refusing or penalizing the employee for availing themselves of this time off.
Study Leave
Employees who are currently pursuing education have the entitlement to take study leave for activities such as exam preparation, attendance of training sessions, engagement in research projects, and the preparation and defense of these projects. The compensation for study leave is outlined in the employment contract, collective bargaining agreement, or training contract.
Public Holidays
Kazakhstan recognizes and observes 12 public holidays.
Benefits to the Employee in Kazakhstan
Kazakhstan Statutory Benefits
In Kazakhstan, employees enjoy various rights under the law, encompassing provisions for pension insurance, medical insurance, annual leave, maternity leave, sick leave, adoption leave, unpaid leave, study leave, and additional entitlements as stipulated by legal regulations.
Other Benefits
Employers in Kazakhstan frequently offer supplementary perks beyond the mandatory provisions, including bonuses, private health and life insurance, allowances, and extended leave.
Rules Regarding Visas and Foreign Workers in Kazakhstan
General Information
Foreign nationals visiting Kazakhstan for short-term business purposes can apply for business visas, categorized based on the purpose of entry. Single-entry and multiple-entry visas are available, with the latter valid for up to 90 calendar days. The maximum duration of multiple-entry business visas varies, reaching up to 180 calendar days or one year, but the stay cannot exceed 30 to 90 days, depending on the category.
Conversely, work visas, issued for up to three years, cater to foreign nationals planning an extended stay. There are four types of work visas, each tied to the purpose of entry and immigration category. These visas, like business visas, may be single-entry or multiple-entry, with the latter valid for one to three years, or five years in special cases. A work permit is a prerequisite for obtaining a work visa.
Employers in Kazakhstan can recruit foreign workers with valid work permits, adhering to the annual quota for foreign labor established by the government. Additionally, employers have the flexibility to provide bonuses, private health and life insurance, allowances, and extra or extended leaves as part of employee benefits beyond legal requirements.
Public Holidays Recognized by Kazakhstan in 2024
Occasion | Date | |
---|---|---|
1 | New Year’s Day | January 1 |
2 | New Year Holiday | January 2 |
3 | Orthodox Christmas Day | January 7 |
4 | International Women’s Day | March 8 |
5 | Nauryz Holiday | March 21 – 25 |
6 | Kazakhstan People Solidarity Day | May 1 |
7 | Defender’s Day | May 7 |
8 | Victory Day | May 9 |
9 | Kurban Ait | June 16 |
10 | Capital City Day | July 6 |
11 | Capital City Day Holiday | July 8 |
12 | Constitution Day | August 30 |
13 | Republic Day | October 25 |
14 | Independence Day | December 16 |
15 | Independence Day Holiday | December 17 |
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