Employer of Record in Uzbekistan

General Information

• Currency: Uzbekistani Soʻm (UZS)
• Employer Taxes: Unknown
• Payroll Frequency: Monthly
• Employee Costs: 25%
• Capital: Tashkent
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The national minimum wage in Uzbekistan is 980,000 UZS.

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 standard working week in Uzbekistan typically spans 40 hours, distributed over either five or six days, depending on the specific arrangements agreed upon by employers and employees. In sectors deemed difficult or dangerous, as well as for minors, working hours are typically reduced to ensure compliance with labor laws and to prioritize the safety and well-being of workers. This approach helps maintain productivity while adhering to regulations that safeguard the health and rights of employees in Uzbekistan.

Overtime: Any work exceeding the standard weekly working hours in Uzbekistan qualifies as overtime and is governed by the terms outlined in the employment contract or collective agreements.

When employees are required to work overtime or on holidays, there are specific limits on the number of hours permitted:

• Overtime hours that exceed the standard 40-hour workweek are compensated at an overtime rate, as specified in the employment contract or collective agreements.
• Typically, this overtime compensation rate is set at 200% of the employee’s regular hourly wage.

These regulations ensure that employees receive fair compensation for additional work performed beyond regular hours, promoting compliance with labor standards and the protection of workers’ rights in Uzbekistan.

Leave

Annual Leave (Vacation):

Employees in Uzbekistan are entitled to a minimum of 15 working days of paid vacation per year after completing six months of continuous employment. This vacation entitlement may be extended for minors and employees engaged in difficult or hazardous occupations.

Specifically, minors and employees in challenging or risky job roles may qualify for additional paid leave beyond the standard 15 days. This provision aims to ensure that workers in demanding environments have adequate rest and recuperation time, aligning with labor laws designed to protect employee well-being and productivity in Uzbekistan.

Public Holidays

In Uzbekistan, the local government annually determines whether holidays that fall on weekends are forfeited or moved to a working day as compensation.

Additionally, religious holidays in Uzbekistan follow the lunar calendar, and their specific dates may initially be marked as ‘tentative’. Confirmation of these dates typically occurs closer to the holiday itself. This approach ensures that both secular and religious holidays are observed in accordance with local traditions and regulations, allowing for effective planning and observance among the populace.

Sick Days

In Uzbekistan, sick leave compensation is provided by the employer and is not considered taxable income for the employer.

Employees are entitled to sick leave compensation in various circumstances, including their own illness, injury, caring for a sick family member, and other specified situations.

The amount of sick leave compensation ranges from 60% to 80% of the employee’s average earnings, depending on factors such as the terms of the employment contract, the reason for sick leave, and the length of the employee’s service.

Upon recovery and return to work, employees are required to submit a medical certificate for any period of absence due to illness or injury.

In cases involving a work-related injury, occupational disease, or other specified qualifications, employees are entitled to receive sick leave compensation at 100% of their average earnings.

These provisions ensure that employees in Uzbekistan receive adequate financial support during periods of illness or injury, promoting both their health and economic stability.

Maternity Leave

In Uzbekistan, maternity leave provisions ensure that employees receive necessary support during the critical period surrounding childbirth:

1. Maternity Leave Duration:
   • Employees are entitled to a total of 126 days of paid maternity leave.
   • This leave is typically divided into 70 days to be taken before the expected date of childbirth and 56 days after the birth.
2. Multiple/Complicated Births:
   • In cases of multiple births or complicated deliveries, maternity leave is extended to 70 days after childbirth.
3. Social Security Benefits:
   • During maternity leave, employees receive social security benefits equivalent to 100% of their regular salary.
   • These benefits are intended to provide financial support to mothers during their absence from work due to childbirth and recovery.

These regulations underscore Uzbekistan’s commitment to supporting maternal health and ensuring that new mothers can take adequate time off work without financial strain. By providing comprehensive maternity leave benefits, the government aims to promote the well-being of families and encourage workforce participation among women.

Paternity Leave

There are no provisions in the law regarding paternity leave.

Parental Leave

There are no provisions in the law regarding parental leave.

Other Leave

In Uzbekistan, an employee is entitled to 56 days of paid leave following the adoption of a child; if an employee adopts multiple children, the entitlement increases to 70 days of paid leave.

Brain Source International provides comprehensive EOR services tailored to the specific needs of businesses entering or expanding into Uzbekistan. As a trusted partner with extensive knowledge of the Uzbek market, Brain Source International offers:

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

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