Hire employees in Kazakhstan
What a foreign company needs to know before employing people in Kazakhstan: whether you need a local entity, what an employee costs under the new 2026 Tax Code, how pension, social and health contributions and the social tax work, how contracts are registered, and how the rules on lending staff affect an employer of record. Written for CHROs, CFOs, General Counsel and founders.
Quick answers
The questions leadership teams ask first.
Do I need a local entity in Kazakhstan to hire?
No. There are three routes:
- Employer of Record. Dryft Global employs the person in Kazakhstan through a compliant local employer, registers the contract in the national e-contract system, runs monthly payroll and pays contributions and social tax. You direct the work.
- Direct local entity. You form a limited liability partnership (LLP) online through egov.kz or register a branch, then set up tax registration and payroll: plan for several weeks before the first payroll.
- Independent contractor. Lawful only for genuinely independent services under a civil contract. Where the work looks like employment, it can be reclassified.
When should I use an EOR instead of registering locally?
Use an EOR for your first hires in Kazakhstan, when you want to start quickly and do not want to build contract registration, monthly payroll under the new 2026 Tax Code and contribution reporting yourself. Your own entity earns its keep for a sustained team, Kazakh customers, or a company that will join the Astana Hub technology park or the Astana International Financial Centre.
What does an employee actually cost beyond salary?
Under the 2026 Tax Code the employer pays a 3.5% pension contribution, 5% social contributions (capped at 7 times the minimum wage), 3% health and a 6% social tax, which can no longer be reduced by social contributions. On a KZT 1,000,000 monthly salary that is about 14.8% on top of gross. The employee pays 10% pension, 2% health and 10% income tax, keeping about 80% of gross.
How difficult is termination in Kazakhstan?
Dismissal is allowed only on grounds listed in the Labour Code, such as liquidation, staff reduction, failed probation or serious misconduct. Liquidation and staff reduction need at least 1 month's notice and severance of 1 month's average salary, and pregnant women and parents of young children are protected from staff reduction. Final settlement is due within 3 working days. Mutual agreement is the common clean exit.
Can Dryft Global legally employ my team in Kazakhstan?
Yes. Dryft Global employs your team through a compliant local employer, structured with the Labour Code's personnel provision rules in mind. We issue written contracts, register them in the e-contract system, pay salary monthly by the 10th, withhold pension, health and income tax, pay employer contributions and social tax, and manage leave and termination.
Hiring routes compared
Speed, set-up burden and liability differ by route.
| Factor | Direct local entity | Dryft Global EOR | Independent contractor |
|---|---|---|---|
| Time to first payroll | Several weeks | Days to 2 weeks | Days |
| Local entity required | Yes, LLP or branch | No | No |
| Contract registration and contributions | Your registrations | Handled by Dryft Global | Customer acts as tax agent |
| Personnel provision rules | Not applicable | Structured compliantly by Dryft | Not applicable |
| Statutory liability | Direct corporate exposure | Assumed by Dryft Global | High if the work looks like employment |
| Best fit | Sustained team, local sales | First hires, engineering teams | Short independent projects |
What an employee costs in Kazakhstan
The employer pays four items on top of salary, each with its own base and cap, which are multiples of the minimum wage. The model below is an Almaty software engineer on KZT 1,000,000 gross a month in 2026.
| Component | Employer share | Notes |
|---|---|---|
| Employer pension (OPVR) | 3.5% | Rises to 4.5% in 2027 and 5% in 2028; not payable for employees born before 1975 |
| Social contributions | 5% | Capped at 7 times the minimum wage (KZT 595,000 a month) |
| Employer health | 3% | Capped at 40 times the minimum wage |
| Social tax | 6% | On gross minus employee pension and health; no cap |
| Total employer on-cost | 14.76% | At KZT 1,000,000 a month, because the social contributions cap applies |
For an employee on KZT 1,000,000 a month, budget roughly KZT 13.8 million (about USD 30,400) a year before the EOR fee and any optional benefits. The employee's net pay is KZT 804,975 a month after 10% pension, 2% health and 10% income tax. Compulsory accident insurance, voluntary medical insurance and bonuses are extra. Ask us for a cost model with current rates applied.
Payroll and tax
Salary is paid in tenge at least monthly, by the 10th of the following month, with a monthly written or electronic payslip. The employer registers each contract in the e-contract system on enbek.kz, withholds employee pension, health and income tax, pays employer contributions and social tax monthly, and files a quarterly declaration (Form 200.00). Late pay carries a daily penalty, and final settlement is due within 3 working days of termination.
Income tax
From 2026 income tax is 10% on annual taxable income up to 8,500 MCI (KZT 36,762,500) and 15% above it, calculated cumulatively from January. The taxable base is gross minus employee pension and health and a basic deduction of 30 MCI a month (KZT 129,750). Most other personal deductions were removed in 2026.
Minimum wage 2026
KZT 85,000 a month, unchanged since 2024. KZT 110,000 a month has been announced for 2027, subject to the budget law, and contribution caps will rise with it.
Leave and mandatory benefits
- Annual leave. At least 24 calendar days, plus at least 6 for heavy or hazardous work. One part must be at least 14 days, and unused leave is paid out on termination.
- Public holidays. 11 holidays in 2026, including Nauryz, Kurban Ait and Independence Day. Constitution Day on 30 August is no longer a holiday from 2026.
- Sick pay. Paid by the employer from day 1, capped at 25 MCI a month (KZT 108,125); the employer may top up.
- Maternity. 126 calendar days (140 for complicated or multiple births), with a social payment from the State Social Insurance Fund.
- Paternity. No dedicated paid paternity leave; fathers can take up to 5 days unpaid on the birth, and either parent can take child care leave until the child is 3.
- Working time. 40 hours a week; overtime needs written consent, is capped at 120 hours a year and is paid at least 1.5 times.
- Common extras. Voluntary medical insurance, bonuses, flexible hours and remote work.
Termination and notice periods
Probation can last up to 3 months, or 6 months for senior managers and chief accountants. After that, the rules are as follows.
| Item | Rule |
|---|---|
| Liquidation or staff reduction notice | At least 1 month |
| Production decline notice | 15 working days, plus notice to employee representatives |
| Severance | 1 month's average salary (2 months for production decline) |
| Employee resignation | At least 1 month's written notice |
| Final settlement | Within 3 working days |
- Listed grounds only. There is no at-will dismissal in Kazakhstan.
- Leave protection. No employer-initiated dismissal during sick leave or annual leave, except on liquidation and some misconduct grounds.
- Protected employees. Pregnant women, women with a child under 3 and single parents of a child under 14 cannot be dismissed for staff reduction.
- Records. The termination must be recorded in the e-contract system.
Can I use independent contractors?
Only for genuinely independent work. Individuals can be engaged under civil-law contracts, with the customer acting as tax agent for income tax and contributions. Courts and inspectors look at substance: a defined job position, a set schedule, your equipment and employment-style guarantees all point to employment, and actual admission to work creates an employment relationship. Lending staff to work under another company's control is also regulated: since 2020 personnel provision is allowed only for domestic work, a specific task, replacing an absent worker or seasonal work, with equal pay. Kazakhstan has no separate EOR category, so the employing structure matters and should be confirmed with counsel for each hire. For anyone who works like an employee, an EOR set up through a compliant local employer is the safe route.
The legal framework in brief
Kazakhstan is a civil law system where the 2015 Labour Code, as amended, sets minimum terms, and a new Tax Code took effect on 1 January 2026. The instruments you will hear most:
- Labour Code. Contracts, probation, working time, leave, notice, dismissal, severance and personnel provision.
- Tax Code (2026). Income tax at 10% and 15%, the 6% social tax and the special regimes.
- Social Code. Pension, social insurance and state benefits, including the rising employer pension contribution.
- Foreign labour rules. Work permits by category within a quota of 0.3% of the labour force, after posting the vacancy for 15 days; EAEU nationals need no permit.
- Data protection. Law No. 94-V of 2013, with a requirement to store personal data in Kazakhstan and to report breaches within 1 business day.
- Corporate tax. 20% standard, VAT 16%, a services PE after 183 days, and a treaty with the United States in force.
- Special regimes. Astana Hub for IT companies and the AIFC for financial services.
- Authorities. The Ministry of Labour and Social Protection, the State Revenue Committee, the pension fund and the social and health insurance funds.
Where the talent is
Kazakhstan has a population of 20.5 million and a labour force of about 9.8 million, with unemployment of 4.5% in the second quarter of 2026. The average wage was KZT 486,388 a month in the same quarter. Kazakh is the state language and Russian is widely used in business. The whole country has used a single UTC+5 time zone since March 2024. Kazakhstan is a member of the Eurasian Economic Union.
| Region | Talent and industry concentration |
|---|---|
| Almaty | Largest business and technology city, finance and services |
| Astana | Capital, Astana Hub technology park and the AIFC |
| Shymkent | Southern commercial centre |
| Karaganda | Industry and engineering |
Kazakhstan Implementation Kit
This page tells you the rules. The kit tells you what to do, in what order, and what goes wrong when you skip a step.
- Step-by-step checklist, from route selection to first payroll
- Contract, probation and e-contract registration
- Gross to net and employer cost set-up under the 2026 Tax Code
- Monthly pay calendar and the quarterly declaration
- Work permit, quota and vacancy posting steps
- Personnel provision and contractor risk checklist
- Every official Kazakh authority with direct links
This guide is general information, not legal, tax or immigration advice. Kazakhstan sets the minimum wage, the MCI and contribution caps in each annual budget law, and the 2026 Tax Code is still being amended. Confirm current figures and the employment structure with a qualified adviser or with Dryft. Last reviewed November 2026.
Ready to hire in Kazakhstan?
Tell us who you want to hire and where they sit. You will get a cost model and a compliant route within a day, from a person who has done this before.