How to Run Payroll in Kazakhstan: Employment Taxes & Setup

Milani Notshe

Research Specialist

Last Updated

February 13, 2026

In This Guide

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Running payroll in Kazakhstan involves many moving parts before your team sees money land in their accounts. Each month you need to calculate gross-to-net correctly, apply statutory withholdings and employer contributions, issue compliant payslips, plus file and remit on schedule. If anything slips through the cracks, you could face penalties, back-pay exposure, and unnecessary friction with your people.

If you’re hiring in Kazakhstan, whether you’re building a local presence or expanding your global footprint, this guide is for you. We’ll walk through the choices and compliance requirements that have the biggest impact on your speed and risk, from entity vs. no-entity hiring to worker classification and the statutory bodies you’ll interact with along the way. By the end, you’ll know exactly what to expect and how to keep payroll running smoothly, wherever you’re hiring.

Key Takeaways

Payroll cycle: Employers in Kazakhstan generally process payroll on a monthly basis.

Tax filing: Personal income tax, pension contributions, and social payments are typically reported and remitted monthly through the electronic tax portal.

Employer taxes: Employer obligations include social tax, social insurance, and mandatory medical insurance contributions calculated as percentages of employee earnings.

Tax year: Kazakhstan’s tax year follows the calendar year, from January 1 to December 31.

Payroll processing methods: Payroll is commonly handled in-house or outsourced to providers familiar with Kazakh tax and social payment requirements.

How to Choose Your Payroll Structure in Kazakhstan

Expanding into Kazakhstan? Building a compliant payroll setup involves much more than simply paying salaries. You’ll be responsible for employment compliance, monthly tax and social declarations, and mandatory benefits. Even small delays in filings or payments can lead to real penalties.

You have several operating models to choose from to make this easier. The right one depends on your legal footprint, your appetite for risk, and how quickly you need to start hiring. Let’s break down the main options and when to use each.

1. No Local Entity in Kazakhstan: Use an Employer of Record (EOR)

If you don’t yet have a legal entity in Kazakhstan, an Employer of Record is usually the fastest and lowest-risk way to hire. An EOR becomes the legal employer on paper, provides locally compliant employment contracts, and manages payroll under local regulations, while you continue to direct the work and manage performance.

This model is ideal for:

Testing a new market
Hiring your first team members
Scaling a distributed workforce without building local infrastructure,

Why it’s the fastest and least risky option:

You skip the lengthy process (and cost) of setting up an entity.
All local registrations, monthly declarations, and statutory payments are handled by a provider already set up in-country, dramatically reducing your compliance risk.

2. You Have a Kazakhstan Entity: Run In-Country Payroll

If you already operate a local entity, or you’re planning to establish one, running payroll directly gives you maximum flexibility and control. You can set your own policies, design benefits, and align payroll closely with your finance and internal approval processes. But this also comes with greater operational responsibility.

What you’re responsible for:

Registering with relevant authorities and maintaining compliance with statutory bodies (often involving CSS/IPRES or similar local institutions).
Accurately calculating and remitting payroll taxes and contributions every month – plus handling year-end requirements.
Issuing compliant payslips and maintaining audit-ready payroll documentation.

When this option makes sense:

You’re hiring at scale and want payroll fully “in-house,” even if you partner with a local provider for execution.
You need deeper integration with finance systems or custom benefit structures.

If you want to keep the entity but offload the admin, many employers choose global payroll services to handle calculations, filings, and payments while they remain the legal employer.

3. Contractors Only: Use Contractor Management

Paying independent contractors is often simpler than setting up full payroll, especially for short-term or highly specialized work.

However, you need to watch out for misclassification risk. In Kazakhstan, as in many jurisdictions, someone may legally qualify as an employee based on how they work – not what their contract says. If they’re under your direction, working like an employee, you may be responsible for full employer obligations.

When contractor payments work well:

You need specialised expertise for a defined scope or timeframe
The contractor operates independently, not under your control or supervision

You can also use contractor management services to streamline compliant contracts, invoicing, and payments.

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What To Know About Payroll Processing In Kazakhstan

Payroll in Kazakhstan centers on four main obligations: personal income tax withholding, social and pension contributions, mandatory health insurance, and regular payroll reporting to the State Revenue Committee of the Ministry of Finance and the State Social Insurance Fund. You must calculate, withhold, and remit these amounts accurately for each pay period, while also observing minimum wage rules, working time limits, and statutory benefits. Non-compliance can trigger tax audits, penalties, late-payment interest, and serious damage to employee trust if salaries or benefits are delayed.

Rules can differ depending on employee income levels, whether staff are residents or non-residents, and whether your business qualifies for special regimes such as the Astana International Financial Centre or small business tax regimes. This guide walks you through how to calculate core payroll taxes, understand the main rates, manage filing and payment deadlines, and set up payroll whether you operate through your own entity or via an Employer of Record. With the right structure, your team can scale hiring in Kazakhstan while staying aligned with 2026 legal and regulatory requirements.

Types Of Payroll Taxes In Kazakhstan

In Kazakhstan, payroll taxes combine employee withholdings and employer-funded contributions that must be reported and paid mainly to the State Revenue Committee, the Unified Accumulative Pension Fund, the State Social Insurance Fund, and the Social Health Insurance Fund. You are responsible for calculating these amounts on employment income, applying statutory caps where relevant, and remitting them on a monthly basis to avoid fines and interest.

Personal Income Tax (PIT)

Personal income tax is generally withheld at a flat 10% rate on taxable employment income for tax residents, after deducting the standard monthly deduction tied to the minimum wage, while non-residents are usually taxed at 20% on Kazakhstan-source income. The employer withholds PIT from each payroll run and remits it monthly to the State Revenue Committee, along with electronic reporting that details each employee’s income and tax. Late or incorrect PIT payments can result in penalties calculated as a percentage of the unpaid tax plus daily interest, and repeated errors can trigger in-depth tax audits.

Mandatory Pension Contributions

Mandatory pension contributions are typically 10% of an employee’s gross employment income, withheld from the employee and transferred to the Unified Accumulative Pension Fund, subject to an upper cap based on a multiple of the monthly minimum wage. Employers must calculate and remit these contributions monthly, alongside PIT and other social payments, using the employee’s individual identification number to allocate funds correctly. Failure to pay pension contributions on time can lead to financial sanctions and may affect employees’ future pension entitlements, which can quickly erode confidence in your payroll processes.

Social And Health Insurance Contributions

Employers in Kazakhstan fund several social and health-related contributions, including social insurance at around 3.5% of income, mandatory social health insurance at about 3% of income, and employer pension contributions for certain categories, all generally calculated on gross salary within statutory caps. These contributions are paid by the employer on top of the employee’s salary and are remitted monthly to the State Social Insurance Fund and the Social Health Insurance Fund via the State Revenue Committee’s systems. Underpayment or late payment can lead to penalties, interest, and potential suspension of access to health coverage or benefits for employees, so accurate monthly reconciliation is essential.

How To Pay Employees In Kazakhstan

Most employees in Kazakhstan are paid by bank transfer in Kazakhstani tenge (KZT), and employment contracts typically specify a monthly salary with payment at least once per month. Employers usually pay salaries no later than the first 10 days of the following month, and many companies align payroll cut-off with calendar month-end to simplify tax reporting and payments.

If you do not have a local entity, you can hire through an Employer of Record that becomes the legal employer in Kazakhstan, or you can register a local entity and set up your own payroll with a local bank account and tax registrations. Payslips should clearly show gross salary, taxable base, personal income tax, pension contributions, social and health insurance, other deductions, and net pay, and they are commonly provided electronically in Russian or Kazakh.

Payment Method: Use bank transfers in KZT to employees’ local accounts as the standard and most compliant method.
Pay Frequency: Set a monthly pay cycle and ensure payment occurs no later than the statutory timeframe agreed in the employment contract.
Payslip Content: Include gross pay, all statutory deductions, voluntary deductions, employer contributions, and net pay for full transparency.
No-Entity Hiring: Engage an Employer of Record to handle contracts, payroll, and statutory filings if you lack a Kazakhstani entity.
Local Entity Route: Register with the State Revenue Committee, open a KZT bank account, and connect payroll software to e-filing systems.
Foreign Currency Funding: Fund the local payroll account in foreign currency if needed, but convert to KZT before paying employees.
Record Keeping: Store payroll records, contracts, and payslips for the statutory retention period to support audits and employee queries.

Payroll Set Up Checklist (Entity Vs No-Entity)

Getting payroll set up correctly in Kazakhstan determines how smoothly you can hire, pay, and stay compliant with tax and social security rules. Running payroll through your own entity gives you direct control but requires full registration and ongoing compliance, while using an Employer of Record lets you operate quickly without building local infrastructure.

With an entity, you must manage tax registrations, bank accounts, payroll software, and filings yourself, whereas with no-entity hiring your Employer of Record or payroll partner handles these obligations and invoices you in a single consolidated amount. Choosing the right route depends on your headcount, long-term plans, and appetite for managing local compliance in-house.

Incorporation Decision: Decide whether to establish a Kazakhstani legal entity or use an Employer of Record based on your growth plans.
Tax Registration: Obtain a business identification number and register with the State Revenue Committee for payroll and social contributions.
Bank Account: Open a local KZT corporate bank account to fund salaries and statutory payments.
HR Documentation: Prepare compliant employment contracts, internal policies, and timekeeping procedures in Russian or Kazakh.
Payroll System: Implement payroll software or a local provider that supports Kazakhstani tax rules and e-filing formats.
Data Collection: Gather employee identification numbers, residency status, bank details, and any applicable tax deductions.
Compliance Calendar: Build a monthly calendar for payroll cut-off, salary payment, and tax and contribution due dates.
Internal Controls: Set approval workflows for payroll changes, bonus payments, and off-cycle runs to reduce errors.
Reporting Framework: Align finance and HR reporting so payroll data reconciles with your general ledger and statutory reports.

Example Of Salary Tax Calculation

Assume an employee earns a monthly gross salary of 600,000 KZT in 2026 and is a tax resident working under a standard employment contract. You will calculate employee withholdings for pension contributions and personal income tax, then add employer social and health contributions on top of the gross salary to determine your total payroll cost.

The exact figures will vary depending on current minimum wage levels, caps, and any applicable deductions, but the process remains consistent each month. By standardizing these steps in your payroll system, you reduce manual errors and make it easier to reconcile with statutory reports.

Step 1 – Determine Taxable Base: Start from gross salary and subtract the 10% employee pension contribution and any standard deductions tied to the minimum wage.
Step 2 – Calculate PIT: Apply the 10% personal income tax rate for residents to the taxable base and withhold this from the employee.
Step 3 – Employee Deductions: Confirm total employee deductions, including pension and any voluntary deductions, to arrive at net pay.
Step 4 – Employer Contributions: Calculate employer social insurance, health insurance, and other statutory employer contributions as percentages of gross salary within applicable caps.
Step 5 – Total Cost: Add employer contributions to gross salary to determine your total monthly cost for this employee.

Submitting Employee Tax In Kazakhstan

Employers submit payroll taxes and contributions primarily through the State Revenue Committee’s electronic filing portal, supported by online banking for payments. You will need your business identification number, each employee’s individual identification number, the payroll period, and detailed breakdowns of PIT, pension, social insurance, and health insurance amounts.

Electronic Filing Portal: Use the State Revenue Committee e-filing system to submit monthly payroll reports and declarations.
Online Bank Transfer: Pay PIT and social contributions via your corporate bank’s online platform using the correct budget classification codes.
Payroll Software Integration: Connect your payroll system to export files in the formats accepted by the tax portal to reduce manual entry.
Third-Party Provider: Consider a local payroll provider or Employer of Record to handle filings and payments on your behalf.
Reconciliation Process: Reconcile payment confirmations with filed reports each month to ensure no discrepancies remain open.

Payroll Tax Due Dates In Kazakhstan

Tax Type	Due Dates
Personal Income Tax Withholding	By the 25th day of the month following the month in which income was paid.
Mandatory Pension Contributions	By the 25th day of the month following the month in which income was paid.
Social Insurance Contributions	By the 25th day of the month following the reporting month.
Mandatory Social Health Insurance Contributions	By the 25th day of the month following the reporting month.
Employer Social Tax (if applicable)	By the 25th day of the month following the reporting month.
Monthly Payroll Reporting To State Revenue Committee	Submitted electronically by the 15th–25th day of the month following the reporting month, depending on the specific form.
Annual Payroll Reconciliation Report	Typically by 31 March of the year following the reporting year.

Running Payroll Processing in Kazakhstan

So, what does it actually take to run payroll in Kazakhstan? It involves calculating monthly salaries, applying the right statutory deductions, and making sure your team gets paid accurately and on time, while staying fully compliant with local tax and labour laws.

Let’s walk through what that looks like in practice:

Monthly Payroll Workflow

Gather all the essentials: hours worked, leave taken, new joiners, leavers, and any salary or benefit changes.
Double-check timesheets, leave balances, overtime, and any variable pay to make sure everything is accurate.
Work out gross earnings, including base salary, bonuses, commissions, and allowances.
Apply mandatory and voluntary deductions, like income tax, pension contributions, benefits, and any company-specific deductions. Then, calculate net pay after all deductions.
Run internal reviews, compare with previous payroll cycles, and get the necessary approvals.
Pay employees via bank transfer and share payslips through email or your payroll system.
Send statutory payments and required reports to tax authorities.
Update your records and ensure payroll entries flow correctly into your accounting system.
Share payroll summaries with finance and address any open questions or discrepancies.

How Playroll Streamlines Processing

Keeping track of all these steps, especially in a new market, is no easy task. Regulations change, requirements shift, and it’s easy for things to fall through the cracks. Playroll makes this effortless by managing the entire payroll process for you: onboarding employees, handling calculations and deductions, issuing payslips, transferring funds in Kazakhstani tenge, and taking care of statutory filings and compliance.

Income Tax And Social Security In Kazakhstan

Understanding the tax obligations for both employers and employees is crucial when operating in Kazakhstan's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Kazakhstan.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 15%–20% on top of the employee salary in Kazakhstan. This range reflects social tax, social insurance, mandatory social health insurance, and any additional employer-funded pension or accident insurance where applicable.

Tax Type	Tax Rate
Social Tax (general employer social contribution)	9.5% of gross income, subject to statutory rules and caps.
Employer Social Insurance Contribution	3.5% of gross income within the established base.
Employer Mandatory Social Health Insurance Contribution	3% of gross income within the statutory cap.
Employer Occupational Accident Insurance	Approximately 0.2%–3% of payroll depending on risk category.
Additional Employer Pension Contribution (for certain categories)	5% of income for specific high-risk or special-category employees where required.
Unemployment Insurance (if applicable under specific schemes)	Up to 1% of gross payroll depending on program participation.

Employee Payroll Tax Contributions

In Kazakhstan, the typical estimation for employee payroll contributions cost is around 20%. This includes personal income tax, mandatory pension contributions, and the employee share of social and health-related charges where applicable.

Tax Type	Tax Rate
Personal Income Tax (resident employees)	10% of taxable employment income after standard deductions.
Personal Income Tax (non-resident employees)	20% of Kazakhstan-source employment income.
Mandatory Employee Pension Contribution	10% of gross income paid to the Unified Accumulative Pension Fund, subject to caps.
Employee Mandatory Social Health Insurance Contribution	2% of income within the statutory cap.
Voluntary Pension Contributions	Employee-determined percentage, typically up to several percent of income.
Trade Union Or Other Voluntary Deductions	As agreed with the employee in writing.

Individual Income Tax Contributions

Individual income tax in Kazakhstan is primarily based on a flat rate structure, with residents taxed at 10% on most employment income and non-residents at 20% on Kazakhstan-source income. Certain types of income may be subject to different rates or exemptions, so payroll systems must correctly classify each income component.

Income Bracket	Tax Rate
0 – 600,000 KZT per month (resident employment income after deductions)	10%
Above 600,000 KZT per month (resident employment income after deductions)	10%
Any Kazakhstan-source employment income for non-residents	20%
Dividends and certain investment income (standard cases)	5%–10%
Income not subject to exemptions under special regimes	10%

Pension in Kazakhstan

Pension in Kazakhstan is built on a funded system where employees contribute 10% of their income to the Unified Accumulative Pension Fund, and in some cases employers add an extra 5% for specific categories of workers. Contributions are invested and tracked to individual accounts, so accurate and timely payroll reporting directly affects employees’ long-term retirement savings.

Managing Common Payroll Challenges in Kazakhstan

Global employers operating in Kazakhstan often encounter unique payroll challenges that can affect compliance and efficiency, like navigating evolving tax laws and managing employee data. With a need for real-time accuracy, modern organizations must develop strategies to overcome these challenges effectively. Below, we explore some of the most common payroll hurdles and provide actionable solutions to streamline payroll processes in Kazakhstan.

Maintaining Accurate And Detailed Payroll Reports

Maintaining accurate global payroll reports is often challenging due to currency exchange complexities, data integration issues, and the need to keep employee information up-to-date –including tax information, hours worked, leave balances, and any changes in salary or job status. Generating accurate reports is easy with a comprehensive payroll automation tool that consolidates fragmented data sources, and can keep track of employee payments and deductions.

Keeping up with ever-changing tax laws & Compliance Laws

In Kazakhstan, tax laws and compliance regulations can change frequently, presenting a significant challenge for global employers. Monitoring updates to federal, state, and local tax codes is crucial to avoid non-compliance and costly penalties, but requires significant time and resources. Partnering with local experts or a reputable global HR platform is an effective way to maintain compliance. These services can help employers stay compliant with evolving regulations while freeing up time for more strategic work.

Consolidating Multi-Vendor Payroll Analytics

Managing payroll across multiple vendors often leads to fragmented data and inefficiencies, making it difficult to consolidate analytics. These challenges can hinder decision-making, especially when trying to gain a clear view of workforce costs and trends. To address this, organizations can invest in a centralized payroll management system that unifies data from multiple vendors. A consolidated platform simplifies payroll tracking, ensures data accuracy, and provides actionable insights into payroll expenditures.

Integrating Multiple HR & Payroll Systems

Global companies are prone to using multiple HR or payroll systems across regions, which can easily lead to fragmented payroll data, increasing the risk of delays and errors in employee compensation. To combat this, seamless integration between payroll and other systems is critical.

Payroll management systems that connect with existing HR and financial platforms can help streamline workflows by reducing manual inputs and ensuring that all departments operate with up-to-date, accurate information. In turn, this helps guarantee on-time, accurate payroll, boosting employee satisfaction.

How Playroll Can Streamline Payroll & Taxes In Kazakhstan

Expanding globally is an exciting milestone for any company, but it comes coupled with complex payroll challenges. It doesn’t have to be complicated. At Playroll, our easy-to-implement global payroll management software combines automation with hands-on support to make global payroll truly simple. Here's how Playroll helps:

Multi-Vendor Integration: Our platform syncs seamlessly with your providers and in-house systems to unify global payroll services in one platform.
Standardize Payroll Processes: Unify your operations in one dashboard to ensure payroll is running smoothly globally, with advanced approval flows and reports.
Improve Governance & Compliance: Improve compliance by centralizing all your compliance tasks and processes. Easily track your payment obligations, with digitized audit trails.
Advanced Reporting: Access and configure your data, your way, with a comprehensive suite of payroll analytics and reporting tools.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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