Employment Law in Kazakhstan: How to Stay Compliant When Hiring Locals

Kazakhstan’s growing economy and strategic location make it an attractive destination for businesses looking to expand their workforce. However, hiring local employees requires compliance with Kazakhstan’s employment laws, which govern labor relations, contracts, social security, and termination policies. This guide provides an overview of key labor regulations and how Brain Source International can help businesses stay compliant through Employer of Record (EOR) services in Kazakhstan.

Key Employment Laws in Kazakhstan

1. Employment Contracts

In Kazakhstan, employment relationships must be formalized through written employment contracts. These contracts must outline:

  • Job title and responsibilities
  • Salary and payment structure
  • Working hours and leave entitlements
  • Conditions for termination
  • Social security and benefits

Failure to issue a formal employment contract can result in legal penalties for the employer.

2. Working Hours & Overtime Regulations

  • Standard working hours: 40 hours per week (typically 8 hours per day, 5 days a week)
  • Overtime: Cannot exceed 2 hours per day or 12 hours per month
  • Overtime pay: Employees must receive 1.5x their normal hourly wage for overtime work
  • Certain industries allow flexible work arrangements, but they must be specified in the employment contract

3. Minimum Wage & Salary Requirements

  • The minimum wage in Kazakhstan is determined by the government and is updated annually.
  • Employers must ensure that salaries comply with local labor standards and industry benchmarks.
  • Salaries must be paid at least once per month, with payroll taxes and contributions deducted accordingly.

4. Social Security & Tax Contributions

Employers in Kazakhstan are required to make mandatory contributions to the following social security schemes:

  • Pension Fund: 10% of the employee’s salary
  • Social Insurance: Employer contributes up to 3.5%
  • Medical Insurance: Employer contributes 2%

Failure to comply with social security contributions can result in penalties and fines from regulatory authorities.

5. Leave Policies & Employee Benefits

Kazakhstan mandates the following leave entitlements:

  • Annual Leave: Minimum of 24 calendar days per year
  • Sick Leave: Employees are entitled to paid sick leave, covered by social insurance
  • Maternity & Paternity Leave:
    • Maternity leave: 126 days (70 before childbirth, 56 after)
    • Paternity leave: Available under specific circumstances

6. Termination & Severance Pay

Terminating an employee in Kazakhstan requires valid grounds and proper procedures:

  • Notice periods vary from one to two months, depending on the contract terms.
  • Severance pay is mandatory in cases of redundancy, company liquidation, or unlawful dismissal.
  • Employees can challenge wrongful termination in labor courts.

Staying Compliant with Employment Laws in Kazakhstan

Ensuring compliance with Kazakhstan’s labor laws requires a deep understanding of legal regulations, taxation policies, and HR administration. Businesses expanding into Kazakhstan can mitigate risks by partnering with an Employer of Record (EOR) service like Brain Source International.

Brain Source International: Your EOR Partner in Kazakhstan

Brain Source International provides Employer of Record (EOR) services to help businesses hire local employees without establishing a legal entity in Kazakhstan.

How Brain Source International Ensures Compliance:

  • Employment Contracts: Drafts legally compliant contracts for local hires
  • Payroll Management: Handles salary payments, tax deductions, and social security contributions
  • HR & Compliance: Ensures adherence to labor laws and regulations
  • Risk Mitigation: Reduces the risk of labor disputes and legal issues

Hiring in Kazakhstan requires compliance with employment contracts, social security regulations, and tax obligations. Businesses can simplify the hiring process and avoid legal risks by partnering with Brain Source International’s EOR services, ensuring a fully compliant workforce while focusing on business growth.

For companies looking to hire local talent in Kazakhstan seamlessly, Brain Source International provides a reliable, cost-effective, and legally compliant employment solution.