Employer of Record in Uzbekistan

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 Uzbekistan 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 Uzbekistan below, to avoid any compliance issues.

Employment Contract Requirements

The employment relationships in Uzbekistan are governed by the Labour Code of the Republic of Uzbekistan, enacted in 1996. An employment contract in Uzbekistan should include the following key elements:

• Employee personal information and Employer details
• Nature and Duration of Employment
• Salary and Payment Details
• Leave Details
• Termination
• Mandatory Contributions

Onboarding Process

We can help you get a new employee started in Uzbekistan 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 Uzbekistan

Regular working hours is set at a maximum of 40 hours. For a six-day workweek, the daily working duration must not surpass seven hours, while for a five-day workweek, it is limited to eight hours per day.

Overtime in Uzbekistan

Employees can work up to four extra hours for two days in a row and up to 120 hours in a year. Overtime pay, set at 200% of the regular pay, applies for hours beyond the standard 40 hours per week.

Probation Period in Uzbekistan

The probationary period for regular employees is limited to three months in Uzbekistan. For key positions such as heads of organizations, their deputies, chief accountants, and heads of distinct divisions within organizations, the probationary period is extended to six months.

Growing your team in Uzbekistan is exciting, but it’s not without challenges. Local labor laws are often nuanced, and hiring without the right legal structure or processes can lead to misclassification, non-compliance penalties, or disputes. An Employer of Record removes that risk by acting as the legal employer on your behalf, taking full responsibility for compliance, contracts, payroll, and employee benefits.

This gives you the freedom to scale at your own pace, whether you're adding one employee or building out an entire function, without the burden of setting up and managing a local entity. You remain in control of day-to-day responsibilities and performance, while the EOR ensures every hire is legally protected and properly supported. It's a strategic way to expand globally without spreading your internal team too thin or exposing your business to legal liabilities in unfamiliar markets.

Fiscal Year in Uzbekistan

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

Payroll Cycle in Uzbekistan

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

Minimum Wage in Uzbekistan

As of August 1, 2025, Uzbekistan's minimum wage is set at UZS 1,200,000 per month. This rate applies to all workers, and the government periodically reviews and adjusts it.

Bonus Payments in Uzbekistan

In Uzbekistan, the labour code does not include a mandatory provision for a 13th-month pay.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 12.1% on top of the employee salary in Uzbekistan.

Employee Payroll Tax Contributions

In Uzbekistan , the typical estimation for employee payroll contributions cost is around 6%.

Individual Income Tax Contributions

The income tax in Uzbekistan is levied at a flat rate of 12%.

Pension in Uzbekistan

Employers contribute 12% to the Unified Social Fund and 0.1% to Individual Pension Accounts. Workers can receive an old-age pension if they are men aged 60 with at least 25 years of service or women aged 55 with at least 20 years of service. Some workers may qualify for a pension at a reduced age or with less service time, depending on their category.

Employees expect to be paid accurately, on time, and in full compliance with local standards. When you're hiring in Uzbekistan, providing a smooth payroll experience is critical to retention and trust. An Employer of Record ensures that employees receive what they’re owed, without errors, delays, or confusion about taxes or benefits.

Key Ways an EOR Supports Payroll in Uzbekistan:

• Reliable Salary Payments: Ensures employees are paid promptly in local currency.
• Clear Payslips & Documentation: Provides employees with compliant, understandable records.
• Correct Benefits & Contributions: Delivers legally mandated contributions and any changes in compensation, like bonuses.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Boosts Employee Confidence: Builds trust with compliant, consistent payroll operations.

In Uzbekistan, the employment of foreign nationals necessitates a comprehensive understanding of the country's work permit and visa procedures. Employers are required to obtain a Corporate Work License, permitting the hiring of a specified number of foreign workers, followed by securing individual work permits and E-type work visas for each employee. The process involves multiple steps, including labor market tests to justify the employment of foreign personnel and adherence to specific documentation and fee requirements. Processing times can extend up to three months, emphasizing the importance of early planning. Additionally, work permits and visas are typically valid for one year, necessitating annual renewals to maintain legal employment status. Employers must remain vigilant in complying with Uzbekistan's labor laws and stay informed about any regulatory changes to ensure a smooth and lawful hiring process.

Mandatory Leave Entitlement in Uzbekistan

The annual leave entitlement in Uzbekistan is 15 working 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 Uzbekistan

The local government annually decides whether holidays that fall on the weekend will be forfeited or shifted to a working day. Religious holidays, which are determined by the lunar cycle, are labeled as 'tentative' until their confirmation closer to the holiday date.

Paid Time Off in Uzbekistan

Employees are entitled to a minimum of 15 working days of paid vacation per year after completing six months of continuous employment. The paid leave entitlement may be extended for minors and employees engaged in challenging and hazardous occupations. Annual leave may be divided into parts, provided that at least one part is not less than 14 calendar days.

Maternity Leave In Uzbekistan

Eligible employees are entitled to up to 126 days of paid maternity leave "70 days before the birth and 56 days after. For multiple or complicated births, the leave is extended to 70 days. During this time, the employee receives a social security benefit equal to their regular salary.

Paternity Leave In Uzbekistan

Uzbekistan's labor laws do not provide a statutory entitlement to paternity leave.

Sick Leave In Uzbekistan

In Uzbekistan, there is no limit on the total number of sick leave days per year, but the number of paid sick days is restricted to 30 calendar days annually. If an employee is unwell for an extended period, the sick leave can be prolonged by a special medical commission for an additional 30 calendar days.

Parental Leave In Uzbekistan

Uzbekistan's labor laws allows for parental leave until a child reaches the age of two, which can be utilized by the child's father, grandparents, or other relatives who are the actual caregivers. This leave is unpaid, but during this period, the caregiver may receive state social insurance benefits.

Adoption Leave

When an employee adopts a child, they are entitled to 56 days of paid leave. If the employee adopts multiple children, the entitlement increases to 70 days of paid leave.

In Uzbekistan, failing to provide the correct employee benefits can have serious consequences. Mistakes in benefits administration may result in fines and harm your reputation as an employer. An Employer of Record ensures statutory benefits and leave are handled correctly, every time, and provides comprehensive options for extra perks to reward your team.

Beyond just avoiding legal issues, a well-managed benefits program builds trust with your employees. An EOR ensures benefits are set up quickly during onboarding, updated when employee status changes, and fully compliant with national regulations. They also manage communication with employees, so there’s no confusion around what’s offered and how to access it. This combination of legal compliance and positive employee experience is hard to replicate without local infrastructure. With an EOR, you can offer peace of mind to your team (and to yourself) knowing that your benefits program in Uzbekistan is running as it should.

Termination Process in Uzbekistan

The termination process in Uzbekistan depends on the employment or collective agreement, the type of contract, and the reason for termination. Economic layoffs or terminations due to long-term disability require approval from the Employee Insurance Agency (UWV). Here are the grounds for which an employer can terminate a contract:

Notice Period in Uzbekistan

In Uzbekistan, the notice period for termination varies based on the reason:

Severance in Uzbekistan

Severance pay in Uzbekistan, under the new code, is determined based on the length of service with the employer and cannot be less than the average monthly wage. The severance pay rates are as follows: