Our guide to Payroll in Kazakhstan

Doing Business in Kazakhstan

Investing in Kazakhstan

Kazakhstan in 2026 continues transitioning toward a diversified, innovation-driven economy, supported by industrial modernization, energy transition, logistics development, and digitalization. Key investment drivers include:

• Strong role of the Astana International Financial Centre (AIFC) in attracting global capital.
• Strategic location linking Europe and Asia through the Middle Corridor (Trans-Caspian route).
• Large reserves of hydrocarbons, uranium, and minerals; strong position as a regional logistics hub.
• Government reforms to promote investment growth and strengthen private-sector presence.

Basic Facts About Kazakhstan

• Capital: Astana
• Population: 20.6 million (2025 est.)
• Currency: Kazakhstani Tenge (KZT)
• Government: Presidential Republic
• GDP (2025): USD 288.4 billion

How to say?

Hello: Сәлем (Sa-lem)

Good Morning: Қайырлы таң (Kaiyr-ly tang)

Good Evening: Қайырлы кеш (Kaiyr-ly kesh)

Do you speak English? Сіз ағылшын тілінде сөйлейсіз бе? (formal) / Сен ағылшын тілінде сөйлейсің бе? (informal) (Siz agylshyn tilin-de soileisiz be?)

Goodbye: Сау болыңыз (formal) / Сау бол (informal) (Sau bol-y-nyz / Sau bol)

Thank you: Рахмет (Rah-met)

See you later: Кейін көріскенше (Keyin kóris-ken-she)

Public Holidays (2026)

Official holidays include (selected):

• Jan 1–2: New Year
• Jan 7: Orthodox Christmas
• Mar 8: Women’s Day (observed March 9)
• Mar 21–23: Nauryz (extended to Mar 24–25 due to weekend)
• May 1: People’s Unity Day
• May 7: Defender of the Fatherland Day
• May 9 (observed May 11): Victory Day
• May 27: Kurban Ait
• Jul 6: Capital Day
• Aug 30 (observed Aug 31): Constitution Day
• Oct 25 (observed Oct 26): Republic Day
• Dec 16: Independence Day

Registrations and Establishing an Entity

Kazakhstan offers several pathways for foreign investors; the 2026 Baker McKenzie Doing Business Guide confirms:

• Foreign investors enjoy legal protections and may enter into investment agreements with the state.
• Investment incentives include tax exemptions, customs benefits, and simplified investment contracts.
• Corporate entities must register with local authorities; regulated activities may require special licenses.

Setting up a Legal Structure

Common business structures include:

• LLP (Limited Liability Partnership) — most common for foreign investors.
• Joint Stock Company (JSC) — used for larger enterprises requiring share issuance.
• Branches & Representative Offices — allowed but not separate legal entities.

Banking

Kazakhstan's banking sector in 2026 is characterized by:

• Stable capitalization and enhanced supervision, though legacy problem assets persist.
• Strong involvement of the AIFC, which offers international banking standards for foreign companies.

Working Week

According to the Labour Code:

• Standard work week is 40 hours.
• Overtime and night work regulated strictly; amendments in 2026 increase protections and regulate flexible work arrangements.

Employment Law

Holiday Accrual / Calculations

• Kazakhstan follows a calendar-day annual leave system.
• Standard minimum annual leave = 24 calendar days.
• Additional leave is granted for hazardous work or specific categories (e.g., disabled workers).

Maternity / Paternal Leave

Key provisions:

• Maternity: 126 days (70 prenatal + 56 postnatal), extended for complications/multiple births.
• Paid through the Social Insurance Fund.
• Parental leave until the child turns 3 years old (payment periods vary).

Sickness

• Sickness benefits funded by the State Social Insurance Fund.
• A worker’s fault in workplace accidents capped at 25% under new 2026 amendments.

National Service

Kazakhstan does not require national service for foreigners; military duty applies only to citizens.

Labor Law (Key 2026 Developments)

Significant amendments include:

• Prohibition on replacing employment contracts with civil contracts; mandatory reclassification for employment-like relationships.
• Enhanced protections:
• Ban on dismissing single parents with children under 14.
• Automatic extension of fixed-term contracts during leave.
• 6-month study leave introduced.

• Anti-harassment employer obligations coming into force in 2026

Tax & Social Security

Tax Rates (2026)

Kazakhstan introduced a progressive PIT system from 1 Jan 2026:

• 10% on income up to 8,500 MCI
• 15% on income exceeding that threshold

Additional updates:

• A new Basic Deduction: 30 MCI/month, 360 MCI/year replaces multiple tax deductions.
• Dividend income: 5% up to 230,000 MCI and 15% above it.
• Corporate Income Tax (CIT): 20% standard; 25% for banks and gambling sectors starting 2026.
• New VAT rate: 16%.

Social Security (2026)

From tax summary:

• Social Tax (Employer): 6% of gross pay.
• Mandatory Social Insurance: Employer 5% (capped at 7× minimum wage).
• Medical Insurance:
• Employer: 3%
• Employee: 2% (capped at 20× minimum wage)
• Pension Contributions:
• Employee: 10% (capped at 50× minimum wage)
• Employer: 3.5% + 5% professional pension for hazardous jobs

Minimum Wage 2026

Conflicting government communications occurred in 2025; however:

• Minimum wage for 2026 remains 85,000 KZT, as confirmed by Deputy PM Zhumangarin.
• Initial proposals to raise it to ~90,000 KZT have been postponed.

Payroll

Reports

Typical payroll requirements include:

• Monthly PIT, social tax, and pension filings
• Quarterly reporting for social tax (due by the 15th after quarter end)
• Monthly medical insurance contribution reporting
• USREC updates for any HR action (hire, amend, terminate)

Reporting (New Employees & Leavers)

Kazakhstan requires:

• Registration of all employment contracts in the Unified System for Registration of Employment Contracts (USREC) within 5 business days.
• From March 12, 2026, administrative fines apply for delayed/inaccurate entries.

Employee Benefits

Statutory benefits include:

• Mandatory pension contributions
• Mandatory medical insurance with employer contributions
• Social insurance providing payments for sickness, loss of dependents, maternity, etc.

Increases of 10% indexation of pensions and benefits for 2026.

Visas & Work Permits

According to 2026 official e-Gov and visa guides:

• Foreign nationals require a work permit + work visa before employment.
• Temporary Residence Permit (TRP) required if stay exceeds 30 days.
• Employers must sponsor the permit; processing typically requires documentation and quota compliance.
• EAEU nationals (Armenia, Russia, Belarus, Kyrgyzstan) may work without a permit under an employment contract

Key changes for 2026

Major 2026 changes include:

Tax System

• Introduction of progressive PIT (10%/15%).
• VAT set at 16%.
• New definitions and tighter rules for non-resident income and cross-border services.

Employment Law

• Ban on misclassification (service → employment contracts).
• Increased employee protections: anti-harassment, parental protections, leave guarantees.

Social Security

• Capped medical insurance contributions expanded (up to 40× minimum wage).