Tajikistan: A Guideline to Payroll and Employer of Record

Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Tajikistan.

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Overview

A country located in Central Asia- Tajikistan, is a mountainous country with over 90% of its area covered by mountain ranges and over 50% of the country having an elevation of over 3000m above sea level. Though the country is mostly known by mountaineers or trekking/hiking enthusiasts, it is becoming more widely known for its dedicated and skilled workforce.

Do your organization's expansion plans require hiring employees in Tajikistan? Do you lack a physical entity in the country – a key requisite to hire local talent? Neeyamo – one of the top Global payroll providers, assists organizations worldwide with onboarding and managing employees in Tajikistan- processing payroll, managing local compliance requirements, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Dushanbe

Currency

Somoni

Official Language

Tajik

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+992

Other Languages

Russian

Time Zone

GMT +05:00

Global Payroll

Overview

Handling payroll for a widespread workforce can pose a major challenge for any firm. The added complication of compliance can make things worse and drastically affect the time and efforts that can be used in other equally important aspects of an organization's development. Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform, Neeyamo Payroll.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare.

Employee Taxes

Personal income tax: 

Employees in Tajikistan are required to pay personal income tax on their earnings at the following rates:

  • Residents: 12%
  • Non-residents: 20%

Social Security contributions: 

Employees in Tajikistan are also required to pay social security contributions at a rate of 22% of employee earnings. The employer and employee each contribute half, so the employee's contribution rate is 11%.

Social security contributions are used to fund social security benefits, such as state pensions, healthcare, and unemployment benefits.

Employer Taxes

Employer taxes in Tajikistan include the following: Social security contributions:

  • Employers are required to pay social security contributions on behalf of their employees. The rate of social security contributions is 20% of employee earnings. 
  • Income tax: Employers are also required to pay income tax on their profits. The rate of income tax on corporate profits in Tajikistan is 20%.

Payroll Cycle

Overview

Undoubtedly, payroll is a critical process for any organization. The pay cycle refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Frequency
The payroll frequency in Tajikistan is monthly. This means that employees in Tajikistan are typically paid once a month.

13th Month Cycle

There is no statutory requirement to pay the 13th or the 14th month salary. Employees receive a generous leave of 24 days. There is no evidence that it is customary to give bonuses.

Global Work

Overview

An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a local registered entity and a local bank account, prior to making a job offer to an international hire.

An EOR service provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits, ensuring compliance with local tax laws and regulations.

This allows organizations to focus on collaborating with the employees in Tajikistan for operational tasks, with the knowledge that they have a cost-effective solution supporting their global payroll and HR requirements, as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

The current minimum wage in Tajikistan is TJS600. 00 per month in 2023.

Overtime

The Labor Code of the Republic of Tajikistan regulates overtime work in Tajikistan. Overtime work is defined as any work performed by an employee in excess of the established working hours. The established working hours in Tajikistan are 40 hours per week, 8 hours per day.

Data Retention Policy

There is no specific law in Tajikistan that limits the number of days that an employer can retain employee data.

Hiring and Onboarding Requirements

Hiring

Key provisions of the hiring law in Tajikistan 

  • Employers must have a written employment contract with each employee. The contract must specify the employee's job title, salary, working hours, and other terms and conditions of employment. 
  • Employers are prohibited from discriminating against job applicants or employees on the basis of race, gender, age, religion, or any other ground. 
  • Employers are required to provide employees with a safe and healthy working environment. 
  • Employers are required to pay employees a minimum wage. The minimum wage is set by the government. 
  • Employees are entitled to annual paid leave, sick leave, and other types of leave.

Onboarding

Onboarding data for Tajikistan typically includes the following information: 

  • Name 
  • Date of birth 
  • Gender 
  • Nationality 
  • Work permit 
  • Qualifications Details 
  • National ID proof

Probation

The employee probation period can not exceed 3 months.

Leave

National Holidays

There are 16 national holidays observed in Tajikistan

  • January 1: New Year's Day 
  • January 2: Day off for New Year's Day 
  • March 8: International Women's Day 
  • March 19: Navruz Celebration 
  • March 20: Navruz Celebration 
  • March 21: Navruz Celebration 
  • March 22: Navruz Celebration 
  • March 23: Navruz Celebration 
  • March 24: Navruz Celebration 
  • April 22: Eid ul Fitr 
  • May 9: Victory Day 
  • June 27: Day of National Unity 
  • June 28: Eid al-Adha 
  • September 9: Independence Day 
  • September 11: Day off for Independence Day 
  • November 6: Constitution Day 

Annual Leave

All employees are entitled to at least 24 calendar days of annual leave, with the exception of certain categories of employees, such as those working in hazardous or unhealthy conditions, who are entitled to additional leave.

Maternity Leave

Women are entitled to 70 calendar days of paid maternity leave before the birth of their child and 70 calendar days of paid maternity leave after the birth of their child. In the event of a difficult delivery, the duration of maternity leave may be extended to 86 days. In the event of the birth of two or more children, the duration of maternity leave may be extended to 110 days.

Paternity Leave

Fathers are entitled to 10 calendar days of paid paternity leave for the birth of their child. Parental leave: Parents are entitled to 3 days of paid parental leave for the birth of their child.

Sick Leave

Employees are entitled to paid sick leave, the duration of which depends on the severity of the illness.

Other Leave

Employees are also entitled to other types of leave, such as leave for family reasons, military service, and education.

Termination

Overview

Labor contract can be terminated in the following cases:

  • by the mutual agreement of the parties
  • by the initiatives of the Employee
  • by the initiatives of the Employer
  • after its expiration
  • in circumstances beyond the control of parties transfer of Employee to another job (position) based on his/her selection or appointment to another position (post), which excludes the possibility of continuation of the labor contract, except the cases envisaged by the legislation of the Republic of Tajikistan.

The labor contract termination is documented by a document issued by the Employer except the cases when it is terminated due to the death of the Employer or the court declares the Employer – individual entity, home worker, and domestic workers to have died or missing.

The Employer is obliged to inform the Employee in writing about the termination of the labor contract signed for an indefinite period.

During the notification period, the Employee has the right to be absent from work not less than one day a week by holding his/her full salary to search for another job.

By the agreement of the parties, the labor contract can be terminated for the outlined reasons before the end of the notification period by providing compensation equal to not less than average daily remuneration for every day remaining until the end of this period. 

The Employer is obliged to inform the relevant authorized public entity on labor and employment about the upcoming (expected) dismissal of staff by outlining their specialty, professional degree, and salary size within the timelines defined by the legislation of the Republic of Tajikistan.

Notice Period

Employees can terminate an employment contract by giving a two-week notice period. Employers can terminate an employment contract by either giving a 2-month notice period (in case of liquidation or organizational restructuring) or a 1-month notice period (in case of lack of qualification or poor performance).

Severance Pay

The employee is paid a one-time severance pay upon termination of the employment contract at the initiative of the employer and in circumstances beyond the control of the parties. The amount of the severance pay cannot be lower than the size of the employee’s three average monthly salaries.

Visa

Overview

Any foreign citizen who plans to live and work in the Republic of Tajikistan will need to obtain a working visa.

The same goes for any family members who plan to travel with them. In addition to the working visa, foreign employees will also need to obtain a work permit before they can officially begin their jobs. The requirements to obtain a Tajikistan visa follow:

  • A passport that has at least two blank pages and three months of validity.
  • A signed employment contract with a company based in Tajikistan.
  • A letter of invitation from the applicant’s employer.

 In Tajikistan, working visas are valid for an initial period of up to three months. Once those three months pass, foreign employees can get a visa extension on the basis of their work permit.

A working visa, or M visa, lets the holder travel to Tajikistan to work for a locally registered company.

An investment visa, or Type C visa, grants entry to the heads or representatives of foreign companies who are investing in Tajikistan’s economy.

A business visa, also called a K visa, allows the holder to travel to Tajikistan for short-term business purposes.

Employee Background Checks

Legal and Background Checks

There is no government-regulated background check process for employees in Tajikistan. However, some employers may choose to conduct their own background checks on potential employees.

Last updated on October 18, 2023. 

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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