Employer of Record in Kazakhstan

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Kazakhstan if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Kazakhstan below, to avoid any compliance issues.

Employment Contract Requirements

The 2015 Kazakhstan Labor Code governs employment relations, addressing aspects like working hours, holidays, rest periods, wages, overtime, and employment relationships.

• Detailed job description, outlining duties and responsibilities
• Commencement date (including employment duration for fixed-term contracts)
• Defined working hours and frequency/date of payment
• Salary and payment terms should be clearly documented, ensuring compliance with the local currency (Kazakhstani Tenge) and payment frequency.

Onboarding Process

We can help you get a new employee started in Kazakhstan quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Kazakhstan

The standard working hours in Kazakhstan are 40 hours per week or 8 hours per day typically from Monday to Friday.

Overtime in Kazakhstan

Any overtime work necessitates a written agreement between the employee and employer. The maximum allowable overtime is capped at 2 hours per day (1 hour for hazardous tasks) and 12 hours per month. Compensation for overtime is calculated at 150% of the regular pay rate.

Probation Period in Kazakhstan

In Kazakhstan, There is a statutory probation period of up to 3 months.

Setting up a local legal entity in Kazakhstan can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.

This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.

Fiscal Year in Kazakhstan

1 January - 31 December is the 12-month accounting period that businesses in Kazakhstan use for financial and tax reporting purposes.

Payroll Cycle in Kazakhstan

The payroll cycle in Kazakhstan is usually monthly, with employees being paid by the last working day of the month.

Minimum Wage in Kazakhstan

As of January 1, 2025, Kazakhstan's national minimum wage is set at KZT 85,000 per month, typically 531.25 KZT per hour. This rate applies uniformly across all sectors and regions of the country. The minimum wage is reviewed annually and is subject to change based on economic conditions and government policy decisions.

This rate reflects a significant increase from previous years, aligning with the government's commitment to improving the standard of living for workers. The minimum wage is determined by the government and is intended to ensure that all workers receive fair compensation for their labor.

Bonus Payments in Kazakhstan

There are no legal provisions for bonus payments.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 21.5%-26.5% on top of the employee salary in Kazakhstan.

Employee Payroll Tax Contributions

In Kazakhstan, the typical estimation for employee payroll contributions cost is around 12%.

Individual Income Tax Contributions

Individual income tax in Kazakhstan is calculated according to a flat rate of 10%.

Pension in Kazakhstan

Employees are required to contribute 10% of their gross salary to an individual pension account. This is a defined contribution system, and the funds are managed by the Unified Accumulative Pension Fund (UAPF). The maximum base for calculation of pension contributions is 50 times the minimum monthly wage (KZT 85,000 in 2025).

One of the biggest risks in global hiring is payroll mismanagement. In Kazakhstan, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.

Key Ways an EOR Supports Payroll in Kazakhstan:

• Mitigates Compliance Risk: Oversees all legal obligations for payroll, tax filings, and recordkeeping.
• Local Regulatory Expertise: Interprets and applies Kazakhstan’s latest labor and tax changes in real time.
• Free Processing: Reduces mistakes in wage calculations and reporting through built
• Payroll Record Management: Maintains compliant payroll audit trails and documentation for each employee.

In Kazakhstan, work permits and visas are essential for employers hiring foreign talent. The process involves submitting applications, paying fees, and meeting various requirements, including labor market assessments and quotas. The key visa types include Type A (for skilled specialists), Type B (for technical workers), Type C (for investors), and Type D (for temporary workers). Employers must ensure compliance with Kazakhstan's labor regulations when sponsoring foreign employees and must be prepared for visa renewals, as work permits are typically valid for one year.

Mandatory Leave Entitlement in Kazakhstan

The annual leave entitlement in Kazakhstan is 24 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Kazakhstan

Kazakhstan has 12 mandatory national public holidays in a year.

Paid Time Off in Kazakhstan

In Kazakhstan, employees are entitled to a minimum of 24 calendar days of paid vacation, with extra days for those in hazardous conditions. The annual leave is calculated in calendar days, excluding public holidays that coincide with scheduled annual leave, irrespective of work schedules.

Maternity Leave In Kazakhstan

Mothers are entitled to 126 days of paid maternity leave, with 70 days before the due date and 56 days (or 70 for multiple births) after birth. In difficult deliveries, an extra 14 days may be added. For mothers in nuclear test areas, the leave is 160 days, split into 90 days before due date and 70 days after birth, fully paid by the employer at 100% regular salary.

Paternity Leave In Kazakhstan

There is no statutory provision for paternity leave in Kazakhstan.

Sick Leave In Kazakhstan

Employees have a paid sick leave entitlement of 3 days per year, which may extend to 6 days in the case of severe illness.

Parental Leave In Kazakhstan

After the maternity leave period, women have the option to take unpaid parental leave until the child reaches the age of 3 years. This leave is available to either parent and allows them to retain their job position.

Other Leave

Employees can take up to 5 days of unpaid leave for purposes such as marriage, bereavement (of an immediate family member), and exceptional circumstances.

In Kazakhstan, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.

An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Kazakhstan actually want and need.

Termination Process in Kazakhstan

Fixed-term contracts can be ended by employers due to business, personal, or worker's misconduct reasons, requiring written notice and explanation. Both employer and employee must provide written notice for agreement termination.

Notice Period in Kazakhstan

The employer must provide a minimum notice period of one month, or compensate the employee with payment in lieu of notice.

Severance in Kazakhstan

In Kazakhstan, all terminated employees are eligible for severance pay, which amounts to 30 days of salary.