Employer of Record in Kyrgyzstan

What is an Employer of Record in Kyrgyzstan?

An Employer of Record (EOR) in Kyrgyzstan is a strategic partner that acts as the legal employer for your employees residing in Kyrgyzstan. The EOR takes on all employment responsibilities and liabilities on your behalf, handling payroll, benefits, taxes, and regulatory compliance.

By partnering with an EOR, you can hire employees in Kyrgyzstan without the need to establish a local entity or navigate complex labor laws.

General Information

• Currency: Kyrgyzstani som KGS
• Employer Taxes: Unknown
• Payroll Frequency: Monthly
• Employee Costs:
• Capital: Bishkek
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: Minimum wage has been revised in Kyrgyzstan with effect from 01 January 2024. The national minimum wage has increased from KGS2,337.00 to KGS2,460.00 per month.

Payroll

Payroll Cycle: The payroll frequency is typically monthly. Employers must make the payment of salaries on the last working day of the month.

Working Hours

General: The typical workweek consists of 40 hours, usually spread over five days, with an eight-hour workday. Employees are entitled to at least one rest day per week, generally Sunday.

The overtime pay is calculated at 1.5 times the worker’s basic hourly rate. This further goes up to twice the basic rate from the third additional hour. The pay for night workers should be not less than 1.5 times the base sum. Employees who work on their weekly offs or other holidays should be compensated by twice the standard rate.

Leave

Annual Leave (Vacation):

Employees are entitled to 28 days of annual paid leave.

Public Holidays

Additionally, religious holidays such as Eid al-Fitr and Eid al-Adha, which follow the Islamic lunar calendar, are also observed in Kyrgyzstan. These dates may vary each year based on the lunar cycle and are determined closer to the time of the holiday.

It’s important to note that public holidays in Kyrgyzstan can be subject to change or additional holidays may be declared by the government.

Sick Days

The rules do not specify any provision for paid sick leave. However, most companies or employers provide rest in case of sickness.

Maternity Leave

Female employees are entitled to 70 days of pre-birth and 56 days of postpartum leave. The employer is liable to pay the total wages for the first 10 working days, beyond which, state benefits cover the employees’ balance leave.

Paternity Leave

A child’s father or any close relative serving as a caregiver can opt for the same leave benefits as that of the female employee.

Brain Source International offers comprehensive EOR services tailored to the specific needs of businesses entering or expanding into Kyrgyzstan. As a reputable partner with in-depth knowledge of the Kyrgyzstani market, Brain Source International provides:

• Risk Management: Mitigating risks associated with non-compliance or legal issues related to employment practices in Kyrgyzstan.
• Legal Compliance: Ensuring adherence to Kyrgyzstan’s complex labor laws and regulations, including employment contracts, working hours, leave entitlements, and termination procedures.
• Payroll Management: Timely and accurate processing of payroll, including tax withholding and compliance with local statutory requirements.
• Benefits Administration: Managing employee benefits such as health insurance, pensions, and other mandatory benefits required by Kyrgyzstani labor laws.
• HR Support: Handling HR tasks such as recruitment, onboarding, performance management, and employee relations to ensure smooth operations and compliance with local norms.

Would you like to know the approximate cost of employment in Kyrgyzstan?