Run your business seamlessly with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Kyrgyzstan.
Kyrgyzstan is a landlocked country in Central Asia, bordered by Kazakhstan to the north, China to the east, Tajikistan to the southwest, and Uzbekistan to the west and south. The majority of the country's territory is mountainous, with the Tian Shan and Pamir mountain ranges covering more than 80% of the land.
Kyrgyzstan's economy is based on agriculture, mining, and remittances from Kyrgyz citizens working abroad. Agriculture accounts for about 12% of GDP, mining accounts for about 10% of GDP, and remittances account for about 30% of GDP.
Kyrgyzstan's main exports are gold, precious stones, uranium, and cotton. The country's main imports are machinery, fuels, and food.
Do your organization's expansion plans require hiring employees in Kyrgyzstan? 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 Kyrgyzstan- processing payroll, managing local compliance requirements, benefits, and more.
Tools And Instances
Facts And Stats
Kyrgyz som (KGS)
Kyrgyz (official), Russian (official)
January 1 - December 31
Uzbek, Uyghur, Kipchak
UTC + 6
Handling payroll for a widespread workforce can pose as a major challenge for any firm. The added complication of compliance can make things worse and drastically affect the time and effort 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 tax is the percentage amount retained from an employee's salary and paid to the government to invest in the welfare of the general population.
Personal Income tax rates:
A single flat rate of 10% is applicable to most types of individual income and applies to both residents and non-residents.
Social Insurance Contribution:
- Social contributions: 2.25% (2% to the fund of obligatory social security, 0.25% to the employee’s health fund).
- Pension contributions: 15% (3% in respect of foreigners temporarily residing in Kyrgyzstan).
- Social Contribution: 0%
- State cumulative pension fund: 2%.
- Pension contributions: 8%.
Undoubtedly, payroll is a critical aspect of any organization. The Pay cycle is a notable feature that provides a sense of accountability for an employee to be paid consistently for their work.
The frequency cycle most commonly observed is Monthly.
13th Month Cycle
There is no statutory requirement to pay the 13th or the 14th month salary.
An Employer of Record service provider helps you get rid of the hassle of handling the complexities that come with setting up a new employee in remote locations. They act as legal employers, facilitate salary payments, and handle everything from health insurance. Payroll taxes, and employee benefits to comply with local tax laws and regulations.
This ensures that the client company can focus on the employee’s everyday tasks safely in the knowledge that they have a cost-effective solution as they continue their global expansion.
HR Mandates and Practices
The minimum wage in Kyrgyzstan is KGS 2,337.00 per month
The Ministry of Labor, Social Security, and Migration of the Kyrgyz Republic has issued Order No. 138, officially approving the production calendar and working time standards for the year 2024.
The order sets the average monthly number of working hours for different workweek durations:
- 40-hour work week – 166 hours
- 36-hour work week – 150 hours
- 24-hour work week – 100 hours
Employees who are required to work overtime are entitled to overtime pay:
- For the first two additional hours: 1.5 times the employee's basic hourly rate
- For the third and subsequent additional hours: 2 times the employee's basic hourly rate
Data Retention Policy
The Law on Personal Data in Kyrgyzstan stipulates that personal data should only be stored for the duration necessary to fulfill its intended purpose. Once the purpose is achieved, organizations are required to either destroy or anonymize the data, emphasizing the principle of limited retention.
Hiring and Onboarding Requirements
According to the Labor Code of the Kyrgyz Republic: The Employment Relations Act of 2007, as amended in 2020, prohibits discrimination in employment on the following grounds: Employers are prohibited from discriminating against job seekers on the basis of their nationality, gender, race, ethnicity, religion, political beliefs, or other personal characteristics. However, there are a few exceptions to this rule.
- Employers may prefer to hire Kyrgyz citizens over foreign nationals for certain positions, such as those that require a high level of security clearance.
- Employers may also prefer to hire candidates who are fluent in Kyrgyz, as this is the official language of Kyrgyzstan. However, employers must be able to justify any hiring decisions that are based on these factors.
The specific onboarding documents required for employees in Somalia may vary depending on the employer and the industry. However, some of the most common onboarding documents include:
- Employee's full name
- Date of birth
- Passport details
- Copy of passport
- Copy of work permit (if applicable)
- A Copy of educational certificate
- Medical certificate (if applicable)
- Military service record (if applicable)
- Bank account details (for salary payments)
The maximum duration of the probation period is three months, except for managers of companies and their deputies, chief accountants and their deputies, managers of branches, representative offices, and other special structural departments of organizations, where it can be extended to six months.
- 1 January - New Year’s Day
- 7 January - Orthodox Christmas Day
- 24 February - Defender of the Fatherland Day
- 9 March - International Women's Day
- 21 March - Nowruz
- 7 April - Day of the People's April Revolution
- 1 May - Labor Day
- 5 May - Constitution Day
- 9 May - Victory Day
- 31 August - Independence Day
- 7 November - Anniversary of the Great October Socialist Revolution
Employees shall be granted annual principal paid leave for 28 calendar days. Annual principal paid leave longer than 28 days (extended principal leave) could be granted to employees pursuant to this Code and other laws.
The rules do not specify any provision for paid sick leave. However, most companies or employers provide rest in case of sickness.
The Labor Code does not explicitly address paternity leave. However, Article 314 emphasizes that guarantees and benefits in the Labor Code extend to individuals raising children without mothers, including single fathers caring for motherless children and guardians of minors.
Maternity leave, according to Article 310, grants female employees 126 calendar days, with 70 days allocated for use before childbirth and 56 days after. During maternity leave, women receive payment through state social insurance.Article 140 allows working women, upon request, to take unpaid maternity leave until the child reaches 18 months of age, with the possibility of extending it for an additional 18 months.
Those employees who adopted a baby under three months old are entitled to maternity leave for the period from the date of adoption till 70 days after the date of birth of a child, 110 days in case of adoption of two or more children. Employees are paid through the state social insurance. Employees are also entitled to the additional maternity leave upon application of an employee who adopted a child under three months old.
There are several reasons for which an employer may terminate an employment contract, including:
- Mutual agreement
- Performance-related reasons
- Other reasons
- Notice of Termination
The employer must provide the employee with written notice of termination. The notice period depends on the reason for termination and the employee's length of service. For example, the notice period for termination due to redundancy is one month for employees with less than one year of service, two months for employees with one to five years of service, and three months for employees with five or more years of service.
The employer is obligated to provide a written notice of termination to the employee. The notice period is generally at least one month. However, if the termination is due to health reasons or insufficient qualifications, the notice period is reduced to 2 weeks.
Payment amounts are based on the employee's length of continuous employment:
- Less than one year: one month's average salary
- One to three years: two months' average salary
- Three to five years: three months' average salary
- Five or more years: four months' average salary
The calculation is based on the employee's average salary over the last three months of employment. The employer is required to make the severance pay payment within seven days of the termination of the employment contract.
To apply for a visa, you will need to provide the following documents:
- A valid passport with at least six months validity remaining
- Two passport-sized photographs
- Completed visa application form
- Letter of invitation from a company or organization in Kyrgyzstan (for business visas)
- Letter of admission from a university or educational institution in Kyrgyzstan (for student visas)
- Proof of financial means (e.g., bank statement, credit card statement)
- Proof of travel insurance
Employee Background Checks
Legal and Background Checks
There is no mandatory requirement for background checks in Kyrgyzstan. However, employers may choose to conduct background checks on their own initiative.
- The individual's criminal record, if any
- Court judgments, if any
- Employment records, if any
- Education records, if any
- Other relevant information
Last updated on November 29, 2023
If you have any queries or suggestions, reach out to us at email@example.com