Hire employees and contractors in Kyrgyzstan

Remote’s guide to employing in Kyrgyzstan.

  • Capital city

    Bishkek

  • Currency

    Kyrgyzstani som
    (С̲, KGS)

  • Population size

    6,586,600
    (2020)

  • Languages spoken

    Kyrgyz, Russian

  • Availability

    Remote-Owned Entity in 2022

    We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.

Facts & Stats

  • Capital city

    Bishkek

  • Currency

    Kyrgyzstani som
    (С̲, KGS)

  • Languages spoken

    Kyrgyz, Russian

  • Population size

    6,586,600 (2020)

  • Ease of doing business

    Easy

  • Cost of living index

    $ (2021)

  • Payroll frequency

    Bi-monthly or monthly

  • VAT - standard rate

    12%

  • GDP - real growth rate

    0.0% (2019)

Grow your team in Kyrgyzstan with Remote

To employ in Kyrgyzstan, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Kyrgyzstan can get complicated, especially without established local relationships. 

Remote currently offers contractor payment and management services in Uruguay. We are busy building our own entity in the country to provide you with best possible employment solutions for your employees but our employer of record services are not yet live in this country.

If you’re looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation. 

In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Kyrgyzstan, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Kyrgyzstan

The Labor Code of the Kyrgyz Republic (enacted 2004) spells out provisions for employee protections and workers’ rights for Kyrgyzstan’s workforce of 2.4 million.

Employees in Kyrgyzstan enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Kyrgyzstan.

Public holidays

Below are national public holidays applicable for all regions in this country. Remote customers have access to a detailed list of regional public holidays within the Remote platform. Sign up now to access all public holiday information.

Minimum wage

The Kyrgyz minimum wage is fixed at 1970 Kyrgyzstani som ($19.15) per month but is largely applied on a nominal basis.

Competitive benefits package in Kyrgyzstan

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

Our benefits packages in Kyrgyzstan are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance
  • Dental Insurance
  • Vision Insurance
  • Mental Health Support
  • Flexible work schedule
  • Pension or 401(K)
  • Life and Disability Insurance
  • Other insurance

Calculate the cost to hire an employee
in Kyrgyzstan

Taxes in Kyrgyzstan

Learn how employment taxes affect your payroll and your employees’ paychecks in Kyrgyzstan.

  • Employer

    • 2.25%: Social contributions (i.e., 2% to the obligatory social security fund & 0.25% to employees’ health fund)

    • 15%: Pension contributions

  • Employee

    • 2%: State cumulative pension fund

    • 8%: Pension contributions

  • Personal income tax rates

    • 10%: Single, flat tax rate

Types of leave

Paid time off

Employees are entitled to four weeks of paid leave annually, which can either be taken at a stretch, or split into two instances of two weeks each.

Public holidays

There are 11 national holidays.

Sick leave

Employees are entitled to paid sick leave.

Maternity leave

Female employees are entitled to 136 days (i.e., around 19 weeks) of paid maternity leave, starting 70 days before delivery and lasting until 56 days after delivery, and paid for by the social insurance agency.

Paternity/parental leave

Parents and other relatives of a newborn can take unpaid childcare leave for up to 36 months after a child’s birth, during which the employees concerned can either take a clean break from work, work part time, or from home.

Employment termination

Termination process

Employee contracts can be terminated by either party, provided just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences. That aside, notice should be provided in advance – provided both parties agree to it.

Notice period

Employers are required to provide a written notice at least a month before an employee is let go, or just two weeks prior, if the employee is being let go for insufficient qualifications or health reasons.

Severance pay

Employees who’re dismissed unfairly are entitled to a severance package of up to 12 months’ wages paid at once.

Probation periods

Probation periods in Kyrgyzstan can last up to three months for general employees, or up to six months, for managerial positions. During this period, either party can terminate the arrangement by providing written notice three days’ prior.

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