Employer of Record (EOR) in Kazakhstan
An EOR in Kazakhstan allows businesses to enter the market quickly and maintain compliance with local labor, tax, and social security laws — all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment, from compliant contract administration and payroll processing in KZT to statutory contributions and ongoing HR support.
Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Kazakhstan.
Quick Overview of EOR in Kazakhstan
Expanding into Kazakhstan does not have to mean navigating dense labour regulations or incurring the significant overhead of local entity formation. With an Employer of Record (EOR), you can hire employees in Kazakhstan quickly, while the EOR manages compliance with the Labour Code of the Republic of Kazakhstan, payroll tax obligations, and mandatory social security and pension contributions — so you can focus on building your business.
The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Incorporating a local entity in Kazakhstan involves company registration, tax and social security registrations, bank account setup, and the drafting of localized employment policies, all of which take time and resources.
By partnering with an EOR, you can begin hiring almost immediately through the EOR's existing locally registered entity, avoiding the upfront overhead of entity formation. This approach is especially valuable for organizations entering Kazakhstan for the first time, those managing small or remote teams, and businesses that want to test the market before committing to a permanent local structure.
How an EOR Works
Atlas HXM provides EOR services that ensure your business remains compliant with Kazakhstan's labor laws while you focus on growing your operations, free from administrative and legal burdens.
Candidate Selection
Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires — validating right-to-work, reviewing contract terms against Kazakhstan's Labor Code requirements, and configuring payroll and statutory obligations correctly.
Employment Contracts
Atlas HXM drafts and administers employment contracts in compliance with Kazakhstani labor law. Employment contracts must be concluded in writing, in at least two copies signed by both parties, and must include mandatory particulars. In the contract, we clearly outline employment terms to reduce the risk of future disputes, such as:
Job title, labor function, and workplace
Salary, benefits, and working hours
Leave entitlements, probationary period if applicable, and notice periods
Termination terms and conditions
Contracts are typically prepared in Kazakh, and often Russian or local langue, with English versions available for client review where required.
Payroll and Benefits Management
Payroll is processed in Kazakhstani tenge (KZT), including:
Accurate personal income tax withholding at progressive rates based on income thresholds expressed in Monthly Calculation Indices (MCI)
Statutory employer contributions including social tax, obligatory social insurance, mandatory social health insurance, and mandatory employer pension contributions
Mandatory employee deductions including pension contributions to the Unified Accumulative Pension Fund (UAPF) and employee social health insurance contributions
The EOR also ensures employees receive statutory benefits including annual paid leave, sick leave, maternity and parental leave protections, and all entitlements prescribed under the Labor Code.
Ongoing HR Support
Atlas HXM provides HR support throughout the employee's tenure, including leave management, employee relations, onboarding and offboarding, and regulatory updates. This allows businesses to focus on core operations while Atlas HXM handles ongoing compliance with Kazakhstan's evolving labor and tax framework.
What to Choose: EOR vs PEO
Work Life in Kazakhstan
Kazakhstan's employment framework, grounded in the Labour Code of the Republic of Kazakhstan, is designed to balance operational flexibility with strong employee protections. Here is what you need to know.
Employment Types:
Indefinite-term: Ongoing employment with full statutory entitlements and strong protections under the Labour Code.
Fixed-term: Generally concluded for a definite period of not less than one year, except for statutory cases such as seasonal work, temporary replacement, or completion of a specific project. Fixed-term contracts may be renewed no more than twice; after that, the employment is treated as indefinite.
Probation Periods: A probationary period may be agreed in the employment contract to verify that the employee's qualifications correspond to the assigned work. The ordinary maximum is three months, extended to six months for heads of organizations and their deputies, chief accountants and their deputies, and heads of branches or representative offices, and either side can terminate it with 3 days' written notice. Probation is suspended during periods of actual absence from work. If the employer does not notify the employee of a negative result before probation expires, the employee is considered to have passed. Probationary periods are not established for seasonal work contracts. The EOR ensures that all probation terms comply with Kazakhstan's Labor Code.
Working Hours and Overtime: Normal working time not exceed 40 hours per week, with a maximum of eight hours per day. Shortened hours apply to specified categories including employees aged 14 to 16 (no more than 24 hours per week), employees aged 16 to 18 and those in heavy or hazardous work (no more than 36 hours per week)
Overtime requires written employee consent except in statutory emergencies, and is capped at two hours per day for standard employees, one hour per day for those in heavy or hazardous work, 12 hours per month, and 120 hours per year.
Pregnant women and employees under 18 may not be assigned to overtime.
The EOR ensures that all overtime is calculated correctly and that employee working hours comply with local regulations.
Leave Entitlements
Leave Type | Eligibility / Duration | Payment / Notes |
|---|---|---|
Annual Leave | Minimum 24 calendar days; additional 6 calendar days for employees in heavy or hazardous work and persons with Group I or II disability | Paid at average earnings; payment due not later than three working days before leave starts; unused leave compensated in cash on termination |
Maternity Leave | 126 calendar days (70 days pre-natal and 50+ post-natal), extending to 140 days for complicated births or multiple children | Social payment from the State Social Insurance Fund for participants in compulsory social insurance; 10% mandatory pension contribution withheld from the maternity social payment |
Paternity / Parental Leave | Up to 5 calendar days unpaid leave for birth of a child; unpaid childcare leave until child reaches age 3, available to mother, father, or other eligible carer | Unpaid; employee retains job or position during childcare leave; employee must notify employer one month before returning early |
Sick Leave | From the first day of incapacity until recovery or establishment of disability, based on a temporary incapacity certificate | Paid by employer from own funds; ordinary monthly cap of 25 MCI 100% of average salary for work injury or occupational disease |
Public Holidays | All statutory national and state holidays | Work on holidays compensated by another rest day or payment at not less than 1.5 times the daily or hourly rate |
Payroll and Benefits: Wages must be paid in KZT at least once a month, no later than the first ten days of the following month, with the payment date set in the employment or collective agreement. The statutory minimum monthly wage is KZT 85,000 as of the 2026 Republican Budget Law. Atlas HXM manages payroll in KZT, personal income tax withholding, all statutory employer and employee contributions, and mandatory pension remittances to the UAPF. Supplemental benefits can include private health insurance, additional pension savings, and other arrangements agreed with the foreign client.
Atlas HXM can help you manage these aspects and ensure that employees are supported and compliant with Kazakhstan's labor laws while businesses focus on operations without administrative burdens.
What to Choose: Indirect vs Direct EOR
Taxes & Compliance
Kazakhstan's tax system imposes specific deadlines that employers must observe. Personal income tax withheld from employment income must be remitted by the 25th day of the month following the month of income payment. Payroll tax returns are due by the 15th day of the second month following the reporting quarter. Obligatory social insurance and health insurance contributions are calculated and paid monthly. The EOR manages all filing calendars and ensures submissions are made accurately and on time.
Category | Details |
|---|---|
Employer Payroll Contributions | Social tax: 6% from 2026
|
Employee Payroll Contributions | Mandatory pension contribution to UAPF: 10% of income; monthly income cap KZT 4,250,000 in 2026
|
Personal Income Tax | Progressive rates from 2026: 10% on income up to 8,500 MCI per year (KZT 36,762,500 with 2026 MCI of KZT 4,325); 15% on income above that threshold
|
Pension System | Funded system built around the Unified Accumulative Pension Fund (UAPF)
|
VAT and EOR Costs: Kazakhstan imposes value-added tax on the supply of goods and services within its territory. EOR services, as professional services rendered by a Kazakhstani entity to foreign clients, are generally subject to the applicable VAT regime, meaning EOR invoices may include VAT on service fees depending on the transactional structure and applicable place-of-supply rules. Employers should seek current, country-specific tax advice or rely on their EOR's tax experts to confirm whether VAT applies to their EOR services and at what rate. Atlas HXM handles personal income tax withholding, social and pension contribution calculations, year-end filings, and legislative monitoring, ensuring businesses remain compliant with Kazakhstan's tax framework while minimising administrative burden.
Termination
Termination in Kazakhstan is governed by the Labour Code, which specifies permissible grounds for dismissal and the associated procedures that must be followed. For employer-initiated termination due to liquidation or staff reduction, the employer must provide at least one month's written notice, unless the employment or collective agreement specifies a longer period. With the employee's written consent, termination may occur before the notice period expires.
Severance pay is required in specified circumstances. Employees dismissed due to employer liquidation or reduction of headcount are entitled to compensation equal to one average monthly salary. Where dismissal results from a reduction in production volume that worsens the employer's economic condition, compensation rises to two average monthly salaries. Employment contracts or collective agreements may provide higher amounts. Unused annual paid leave is compensated in cash on termination.
Employees who believe they have been wrongfully dismissed may bring reinstatement claims to conciliation commissions within one month of receiving notice, and to court within two months of the commission's decision.
Other labor claims may be filed within one year of becoming aware of a rights breach.
The EOR ensures proper handling of terminations, including notice periods, severance calculations, final wage payments, required authority notifications, and all associated documentation.
5 Things to Look for in an EOR Provider in Kazakhstan
Local expertise and in-depth knowledge of Kazakhstan's Labor Code, tax and social security framework, and immigration and work permit requirements.
Advanced technology for payroll processing in KZT, statutory reporting, and integration with HR systems.
Demonstrated experience operating in Kazakhstan, with a track record of compliance and proactive monitoring of legislative changes.
Strong relationships with relevant authorities and access to local legal advisors for labor inspections, tax audits, and dispute management.
Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).
Atlas HXM provides direct EOR services in Kazakhstan, managing payroll, compliance, and benefits efficiently through its own locally registered entity.
Atlas HXM's unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses.
Recognised by the Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2026, Atlas HXM combines compliance expertise, technology, and global reach.
FAQs
How quickly can I hire employees in Kazakhstan through an EOR?
Because EOR providers maintain pre-registered entities, tax registrations, and social security registrations in Kazakhstan, hiring can typically begin within days or weeks once a service agreement is signed and candidate details are finalised. This compares favourably with the months required to incorporate a local subsidiary and build internal HR and payroll capability.
What is the minimum wage in Kazakhstan?
The statutory minimum monthly wage in Kazakhstan is KZT 85,000 as of the 2026 Republican Budget Law. Employees who have fully worked the normal hours for a period and fulfilled their duties may not receive less than this amount.
Are there restrictions on terminating employees in Kazakhstan?
Yes. Employer-initiated termination is permitted only on statutory grounds specified in the Labour Code. Specific notice periods and severance entitlements apply depending on the grounds for dismissal, and certain categories of employees — including pregnant women and those on maternity or childcare leave — are protected from dismissal.
How does overtime pay work in Kazakhstan?
Overtime is compensated at no less than one and one-half times the employee's standard daily or hourly rate.
For piecework, the overtime supplement must be at least 50% of the daily or hourly rate. By agreement, overtime may instead be compensated by rest time of at least one hour for each overtime hour worked.
What are the main employer payroll contributions in Kazakhstan?
Employers contribute social tax at 6% from 2026, obligatory social insurance at 5%, mandatory social health insurance at 3% of salary, and mandatory employer pension contributions at 3.5% in 2026 (rising to 5% in 2028) for eligible employees. Employers in hazardous industries also pay mandatory professional pension contributions at 5% of monthly income.
What annual leave are employees entitled to in Kazakhstan?
Employees are entitled to a minimum of 24 calendar days of paid annual leave per year, calculated in calendar days and excluding public holidays that fall during the leave period.
Employees in heavy or hazardous work and persons with Group I or II disability receive an additional minimum of 6 calendar days.
Unused leave must not be withheld for two consecutive years, and is compensated in cash on termination.
How does an EOR protect intellectual property and confidential information?
EOR-managed employment contracts can include robust confidentiality clauses, IP assignment provisions, Confidentiality clauses define protected information and restrict use and disclosure.
IP assignment clauses allocate ownership of work created during employment, so EORs focus on precisely scoped confidentiality and IP assignment as the primary tools for protecting employer interests, supplemented by operational data security measures and device use policies.
What happens if we decide to transition from EOR to a local entity in Kazakhstan?
Many employers use EOR engagement as a bridge to eventual establishment of a local subsidiary or branch.
When a company is ready to transition, the EOR can support the transfer of employees to the new local employer — assisting with new contract drafting, final pay calculations, continuity of statutory entitlements, and coordination with authorities.
Careful timing and legal planning are essential, and Atlas HXM can play a central role in operationalising the change while maintaining compliance and employee trust throughout.