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APAC - Kyrgyzstan
Employer of Record Kyrgyzstan

Last updated: Jul 23, 2024
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Country Description

Kyrgyzstan is a landlocked country located in Central Asia, west of China and south of Kazakhstan. It has a lower-middle-income economy. The top three industries are mining, textiles, and agriculture, but information technology (IT) and renewable energy are growth industries. The labor force is Kyrgyzstan is around 3 million people.

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Employment contracts in Kyrgyzstan must include a job description, wages, place of work, and the rights and obligations of the employer and employee. It must be in writing and signed by both parties. Although employment contracts can be for fixed terms, the preference is for unlimited terms. Contracts for fixed terms are not permitted in all cases, and, generally, may not have a duration of more than five years. If the term is not specified in writing, it will be for an indefinite period. If both the parties want to continue the relationship after a fixed-term contract expires, the contract will be treated as indefinite.

As of January 1, 2024, the minimum wage in Kyrgyzstan is 2,460 Kyrgyzstani Som (KGS) per month. Employers are not required to provide bonuses to their employees.

The standard workweek in Kyrgyzstan is 40 hours. Overtime is paid at a rate of not less than 1.5 times the worker’s basic hourly rate for the first two hours and not less than two times the basic hourly rate for the third hour and any additional overtime hours. Under some circumstances, a worker’s wage for working at night must be not less than 1.5 times the base wage. Work done on a scheduled day off or on a holiday is paid at not less than twice the worker’s normal pay rate.

Employers must give paid sick leave to employees in Kyrgyzstan who present a medical certificate. The certificate indicates how long the employee is entitled to paid sick leave. Sick leave pay is a percentage of the employee's average earnings.

Female employees are entitled to 126 days of maternity leave in Kyrgyzstan, up to 70 days before the birth and 56 days after the birth. In the event of a birth with complications or the birth of multiples, the mother is entitled to 70 days of leave after the birth. Employees on matrnity leave are paid by social insurance.

Female workers in certain remote or mountainous regions are entitled to additional maternity leave. Part or all of this leave may be taken by the child’s father or any other relative who will be caring for the child. Additional unpaid leave may be taken until the child reaches three years of age. During maternity leave, employers pay workers 100% of the employee’s wages for the first 10 working days. Beginning on the 11th day and continuing through the end of the leave, the employee on leave receives a benefit paid by the government. Female employees may not be denied employment or terminated because of pregnancy, and women with young children at home may not be terminated except in limited circumstances involving misconduct.

Employees receive 28 days of annual paid leave in Kyrgyzstan. Leave is paid by the employer.

Kyrgyzstan has no other types of statutory leave.

In Kyrgyzstan, the public holidays are:

New Year’s Day
Orthodox Christmas
Defender of the Fatherland Day
International Women’s Day
Nowruz
Day of the People’s April Revolution
Labor Day
Constitution Day
Victory Day
Orozo Ait
Independence Day
Kurban Ait
Days of History and Commemoration of Ancestors

Kyrgyzstan has a compulsory health insurance system which includes basic, compulsory, and voluntary health insurance.

An employment contract can be terminated in Kyrgyzstan when:

The parties agree to terminate the contract,

The contract is for a fixed term and the term has ended,

Either the employer or the employee chooses to terminate the contract,

The employee moves to a new job with a different employer, either at the employee’s request or by agreement with the employer,

Circumstances beyond the control of the parties require it,

The employee refuses a transfer to other work because of a health condition supported by medical documentation,

The employee refuses to continue working due to significant change in working conditions,

The employee refuses to continue working due to a change in the organization’s ownership, jurisdiction or management, or

The employee refuses to relocate after the employer moves to a new location and other reasons permitted by law.

An employer must provide one month’s written notice of termination, which the employee must acknowledge in writing. An employee may terminate an employment contract with two weeks’ written notice.

Employer Contributions

Social contributions: 2.25% (2% to the fund of obligatory social security, 0.25% to the employees' health fund).

Pension contributions: 15% (3% in respect of foreigners temporarily residing in Kyrgyzstan).

Employee Contribution
State cumulative pension fund: 2%
Pension contributions: 8%.

The State Migration Service (the "Migration Service") issues work permits to foreign person. The Migration Service issues two kinds of work permits:

  • Employment Permits that authorize the hiring and employment of foreign employees, and

  • Employee Permit (personal cards) for foreign workers.

Requests for work permits can be refused and valid work permits revoked if: ­

  • suitable local professionals become available for hire in the domestic market; ­

  • the data submitted in an application turns out to be inaccurate; ­

  • employees are terminated from employment or the employers’ business activities in the Kyrgyz Republic cease; ­

  • illegal actions are committed.

Employment Permits

Kyrgyz employers planning to hire foreign employees must be issued Employment Permits before they hire foreign and stateless individuals.

The Government sets annual quotas for hiring foreign and stateless employees. The quotas are established by industry and vary by regions of the Kyrgyz Republic, including Bishkek.

The quota for foreign labor provided in the Employment Permit willbe annulled if it’s not used within three months after it was issued.

Employee Permits

Foreign workers who plan to work in the Kyrgyz Republic must apply for an Employee Permit.

Employee Permits for foreign executives or professionals are valid for one year and can be extended annually. Employee Permits for skilled foreign employees are generally valid for two years.

The standard rate of VAT is 12%.

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