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Uzbekistan

Payroll and Benefits Guide

Last updated:
Dec 8, 2022

Table of contents

Overview Contributions Minimum Wage Payroll Working Hours Leave Termination Common Benefits VISA VAT

Overview

Capital
Currency
Uzbekistani Soʻm (UZS)
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December
Payroll Frequency
Monthly
Employer Taxes
12.10%

Contributions

Employer

Employer Payroll Contributions

12.0% Social Security
0.10% Pension
12.10% Total Employment Cost

Employee

Employee Payroll Contributions

4.00% Social Security
0.50% Unemployment Insurance
1.00% Housing Loan Regime
0.50% Employee training contribution (INCES)
6.00%

Total Employee Cost

 

 

Employee Income Tax

12.00% Flat Rate

Employer Social Tax

12.00%- 25.00% Flat Rate (The rate of ST is 12% for all kind of entities with extension to certain new categories of taxpayers, including individual entrepreneurs and their employees, members of family enterprises, farming enterprises, and artisans, etc. Other organisations pay ST at the rate of 25%.)

Minimum Wage

General

The national minimum wage in Uzbekistan is 822,000 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.

13th Salary

In Uzbekistan, 13th-month payments are not mandatory. Employers can pay bonuses at their discretion.

 

Leave

Paid Time Off

Employees are entitled to a minimum of 15 days of paid vacation year after completing 6 months of continuous employment. The paid leave entitlement may increase for minors and employees with difficult and dangerous jobs.

Public Holidays

There are 9 public holidays.

Sick Days

Sick leave is paid by the employer but is excluded from the employer’s taxable income. Sick leave compensation must be paid to an employee in the event of illness, injury and in cases where an employee is caring for a sick family member, as well as in some other instances.

Sick leave compensation payment ranges between 60% to 80% of an employee’s average earnings, dependant on the employment contract, reasons for sick leave and length of service.  In addition, employees are required to submit a medical certificate for any absence after their recovery and return to work.

In cases of a labour-related injury or occupational disease or other special qualification of the employee, the amount of sick leave compensation is 100% of the employee’s average earnings.

Maternity Leave

An employee is entitled to paid maternity leave of up to 126 days, 70 days of leave prior to the birth of a child and 56 days after the birth, 70 days in the case of multiple/complicated birth.

During maternity leave an employee is entitled to social security benefit of 100.00% of their regular salary.

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.

 

Leave

Paid Time Off

Employees are entitled to a minimum of 15 days of paid vacation year after completing 6 months of continuous employment. The paid leave entitlement may increase for minors and employees with difficult and dangerous jobs.

Public Holidays

There are 9 public holidays.

Sick Days

Sick leave is paid by the employer but is excluded from the employer’s taxable income. Sick leave compensation must be paid to an employee in the event of illness, injury and in cases where an employee is caring for a sick family member, as well as in some other instances.

Sick leave compensation payment ranges between 60% to 80% of an employee’s average earnings, dependant on the employment contract, reasons for sick leave and length of service.  In addition, employees are required to submit a medical certificate for any absence after their recovery and return to work.

In cases of a labour-related injury or occupational disease or other special qualification of the employee, the amount of sick leave compensation is 100% of the employee’s average earnings.

Maternity Leave

An employee is entitled to paid maternity leave of up to 126 days, 70 days of leave prior to the birth of a child and 56 days after the birth, 70 days in the case of multiple/complicated birth.

During maternity leave an employee is entitled to social security benefit of 100.00% of their regular salary.

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.

 

Termination

Termination Process

The termination process varies according to the employment agreement or collective agreement in place and is based on the type of contract and reason for termination. However, no termination due to economic reasons or long-term disability can occur without the Employee Insurance Agency (UWV).

If an employee is a trade union member, the employer must receive approval before terminating the employee. Upon receipt of approval, the employee must proceed to dismiss the employee within one month.

Notice Period

Notice period depends on the reason for termination:  

  • Redundancy – 2 months’ notice  
  • Lack of qualification or health reason that impedes the employee’s ability to carry out their duties– 2 weeks’ notice  
  • Change in the company’s ownership – 2 months’ notice  
  • Gross misconduct or performance- 3 days’ notice  

Payment in lieu of notice is permissible.

Severance Pay

The severance payment is one month’s salary for every two years of service from the employee.

Probation Period

An employment contract generally includes a period of probation which cannot exceed three months.

 

VISA

VISA

Most nationals require either a B-1 Business Visa or a B-2 Business Visa to enter Uzbekistan to conduct business activities in Uzbekistan and must obtain it before travel from an Uzbek Consulate or Embassy.

Foreign nationals arriving from countries without an Uzbek consulate or embassy may apply for a visa upon arrival at the airport in Uzbekistan provided that a request for a visa upon arrival is included in a visa application form and approved by the Consulate Department of the Ministry of Foreign Affairs of Uzbekistan.

Apart from Turkmenistan and Tajikistan, nationals from the Commonwealth of Independent States (CIS) do not require a business visa and are visa-waivered to enter Uzbekistan and conduct business activities.

In Uzbekistan, the requirement for a work permit is generally determined by the nature of the work assignment. An employee can conduct most unremunerated activities on a short-term basis with a Business Visa. However, a legal assessment is recommended before travel to Uzbekistan.

Whether a work permit is required depends on levels of qualifications, employer entity, and nature of work. The most common Uzbek work authorization is a Work Permit (direct-hire work permit).

 

VAT

General

The standard rate of VAT in Uzbekistan is 15.00%.

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