Fixed – term employment contracts: The contract term shall be no less than one year. Exceptions include contracts for specific tasks, replacing temporarily absent employees, or seasonal work. They can be renewed up to twice, and renewals shall be made through a written supplementary agreement. If the contract is for a specific task, the completion of the task is the contract expiration date.
Open – ended employment contracts: The most common type, which can only be terminated under legal circumstances, such as an employee’s voluntary resignation, mutual agreement, or legal dismissal by the employer.
Part – time employment: With the written consent of the employee and the employer, an employee can be arranged for part – time work. Part – time employees enjoy the same labor rights as full – time employees, calculated in proportion to working hours. Employees under 18 must have reduced working hours.
Internship system: There is no concept of “pre – employment internship” in the Labor Law. Only probation periods are allowed. In Kazakhstan, there are educational internships and work internships. If an intern undertakes actual work responsibilities, the salary shall not be lower than the statutory monthly minimum wage.
Part – time Employees: IC Contracts
Independent Contractor Agreements are governed by the Civil Code of Kazakhstan. They apply when one party (the independent contractor) undertakes to complete a task or provide a service for another party (the client) without establishing an employment relationship.
Characteristics of independent contractors: They work independently, bear their own profits and losses, are not subject to the client’s internal rules and regulations, are not considered employees of the client, and are paid based on results.
Subordination relationship: Contractors decide their own work arrangements and execution methods.
Labor protection rights not enjoyed: Paid annual leave, sick pay, dismissal protection, and statutory employer social security contributions (except for mandatory pension contributions).
Payment: Settlement is based on the actual delivered results.
Liability: Contractors bear full civil liability for the results of their work.
2. Overview of Local Statutory Welfare Systems
Salary Payment
Payment procedures and deadlines: Salary shall be paid at least once a month, no later than the 10th day of the next month. If the pay – day falls on a weekend or public holiday, it shall be paid in advance. When an employee leaves, all payable amounts shall be paid within three working days after the termination of the employment relationship.
Penalty for late payment: The employer shall pay the payable amount and a penalty, which is calculated according to a formula.
Payment methods: Salary shall be paid in the national currency of Kazakhstan (Tenge, KZT), and can be paid by non – cash transfer, cash, or a combination.
Monthly Minimum Wage: Since January 1, 2025, the monthly minimum wage standard is 85,000 Tenge.
Probation Period
Basic rules: A probation period can be set when signing an employment contract, starting from the actual start – date agreed in the contract.
Probation period length: It is included in the employee’s length of service and shall not exceed 3 months. For some positions, it can be extended to 6 months.
Salary treatment during probation: Employees shall receive full salary as agreed in the contract and enjoy all statutory rights and guarantees.
Handling of probation results: If the employer deems the employee unqualified, it shall notify the employee in writing at least 7 calendar days in advance and state the reasons clearly. If neither party proposes to terminate the contract before the end of the probation period, the employee passes the probation.
Employer contributions: OPVR (employer’s pension contribution) 2.5%, OOSMS (employer’s medical insurance contribution) 3%, SO (social security contribution), SN (social tax).
3. Salary Payment and Statutory Holiday Responsibilities
Personal Income Tax: The tax rate is 10% of the employee’s taxable income, and the employer is responsible for withholding and paying it.
Overtime Pay and Maximum Working Hours
Definition of working hours: It refers to the time when employees perform their work duties according to the employer’s rules and regulations and the employment contract, and other periods regarded as working hours by the Labor Law of Kazakhstan.
Length of working hours: The standard working hours shall not exceed 40 hours per week. Reduced working hours apply to specific employee groups, and part – time working hours are set according to the agreement between the employee and the employer.
Length of work shifts: The standard shift length shall not exceed 8 hours per day, and the working and rest times shall be clearly defined.
Night work: From 10 p.m. to 6 a.m., some employees shall not be arranged for night work.
Overtime regulations: Overtime shall not exceed 2 hours per day (1 hour for employees in heavy – physical, harmful, or dangerous jobs), no more than 12 hours per month, and no more than 120 hours per year. In some cases, employee consent is not required.
Employees prohibited from overtime: Pregnant employees, employees under 18, and disabled employees with medical restrictions.
Overtime pay compensation: It shall be no less than 1.5 times the employee’s hourly wage or post – wage.
Statutory Holidays
Paid annual leave: It is divided into basic annual leave (no less than 24 calendar days) and additional annual leave, which is for employees to rest, etc.
Social leave: It includes unpaid leave, educational leave, maternity leave, parental leave, etc. It is included in the employee’s length of service and requires the employer’s approval.
Treatment or Conversion Logic of Unused Annual Leave at the End of the Year
Annual leave carry – forward policy: With the mutual agreement of both parties, part or all of the paid annual leave can be carried forward to the next working year.
Mandatory leave clause: The employer shall not refuse an employee’s request for paid annual leave for two consecutive years.
Economic compensation for unused annual leave upon departure: It is calculated based on the employee’s average daily wage before leaving.
Legal Holidays: There are fixed – date legal holidays. Some holidays are rescheduled if they fall on a weekend, and some are fixed rest days.
Other Leaves
Maternity leave: For normal delivery, it is 126 calendar days; for difficult delivery or multiple births, it is 140 calendar days. Women in areas affected by nuclear tests have longer maternity leave. One of the adoptive parents can enjoy maternity leave.
Paternity leave: The Labor Law does not clearly stipulate mandatory paid paternity leave. Male employees can take unpaid parental leave.
Parental leave: Employees can apply for unpaid parental leave to take care of children under 3 years old.
Sick leave: The employer shall pay sick – pay compensation. In some cases, no compensation is paid. Specific groups of employees enjoy full – salary during sick leave.
Calculation Logic of Partial – month Salary (Including Absence or Unpaid Leave): Partial – month salary shall be calculated proportionally based on actual working hours.
Expatriate Employees
Split salary payment: The law does not prohibit salary splitting. There are minimum local salary requirements for applying for work visas.
Withdrawability of local social insurance benefits: Most social insurance fees paid by expatriate employees cannot be withdrawn. The conditions for withdrawing mandatory pension contributions are very strict.
4. Dismissal Rules and Compensation Arrangements
Dismissal (Legal Requirements and Best Practices)
Notice period: When the employer terminates the contract, it shall notify the employee in writing at least 1 month in advance. When an employee resigns, he/she shall notify the employer in writing at least 1 month in advance. The contract can stipulate a longer notice period.
Best practices: The notice shall clearly express the intention, reasons, etc., and ensure formal delivery and signature.
Voluntary Resignation by Employees: Employees have the right to voluntarily resign, notifying the employer in writing at least 1 month in advance. They can withdraw the resignation application during the notice period, except in some cases.
Termination of Employment Relationship during Probation: If the employer or the employee deems the employee unfit for the position, they shall notify the other party in writing at least 7 calendar days in advance and state the reasons clearly.
Mutual Agreement to Terminate the Employment Contract: The termination shall be in written agreement form, clearly stating the termination date and compensation. Either party can propose the termination, and the receiving party shall reply in writing within 3 working days.
Termination of the Contract due to Lay – off or Other Business Reasons
Legal basis and termination conditions: The employer can terminate the contract due to economic deterioration, but it must meet relevant conditions; otherwise, it is illegal.
Advance notice and negotiation: The employer shall notify the employees in writing at least 1 month in advance and negotiate with the trade union or employee representative organization.
Economic compensation: Employees are entitled to economic compensation equivalent to two months’ average salary.
Termination restrictions: Some employees shall not be terminated due to economic lay – off.
Termination of the Contract due to Employee’s Fault (Just – cause Dismissal): According to the law, if the employer has sufficient evidence to prove the employee’s misconduct or incompetence, it can terminate the contract immediately.
Conversion of Unused Annual Leave for Departing Employees: When an employee leaves, they can choose to take the leave before terminating the contract or receive cash compensation for unused annual leave. The compensation is calculated based on the average daily wage, and the payment shall be made within three working days after the contract termination. Relevant taxes and fees shall be paid.
Labor Law Official Websites: Adilet.zan.kz can be used to access the Labor Code and relevant regulations. Gov.kz/memleket/entities/enbek is the official website of the Ministry of Labor and Social Protection. Egov.kz provides access to regulatory texts and electronic employment contract management services.
5. Analysis of Local Government Incentive Measures and Policies for Local Companies and Employment
Incentive Policies
Priority for local citizens in employment: When recruiting, local candidates shall be given priority. Employers can apply for work permits to hire foreign employees only when there are no qualified local talents.
Localization obligations in hiring foreign employees: Employers shall invest in training local employees, submit annual localization reports, and meet the quota requirements for local employees.
Investor responsibilities and corporate social responsibilities: Enterprises in investment contracts or special economic zones shall create local jobs, set up training budgets, and give priority to purchasing local products.
National employment support programs: The government promotes local employment and skills improvement through the “Enbek” program, including targeted training, employment subsidies, and entrepreneurship support.
Work Visa Quota Allocation for Foreign Nationals
Overall quota ratio: In 2025, the total quota of foreign labor force allocated by local governments to employers shall not exceed 0.2% of the total national labor force.
Quota distribution by labor category: Different categories of employees have different quotas.
Ratio requirements for local and foreign employees: In the first and second categories of employees, local citizens shall account for no less than 70%; in the third and fourth categories, no less than 90%.
Regional distribution of foreign labor force quotas in 2025: Different regions have different quotas.
Government Subsidy or Funding Incentive Policies
Preferential policies for participants in special economic zones (SEZ): Exemption from various taxes and fees, and some areas have additional preferential policies.
Priority investment projects: Projects with a certain investment amount enjoy customs duty exemption, tax incentives, and government in – kind subsidies.
Preferential policies for modernization/expansion projects: Projects with an investment of no less than 5 million MCI can enjoy a 3 – year exemption from corporate income tax.
Other investment incentive measures: Exemption from import tariffs and value – added tax, and the government provides in – kind subsidies.
6. Local Human Resources Analysis and Employment Suggestions
Employment Numbers: In the first quarter of 2025, the total number of employed people was about 9.3 million, including 7.1 million employees and 2.2 million self – employed people. The number of employed people is growing steadily, with obvious industry and regional characteristics.
Unemployment Rate: In the first quarter of 2025, the unemployment rate was 4.6%. The proportion of female unemployed was slightly higher. There are hidden unemployment or under – employment problems in some areas. The youth unemployment rate has slightly decreased.
Average Salary Trend: In the first quarter of 2025, the median salary was 300,307 Tenge, and the average nominal salary was 423,133 Tenge, with a year – on – year increase of 10.7%. There are obvious salary differences among different industries and regions, and salaries are expected to continue to rise.
Employment Suggestions
Prioritize local talents: Cooperate with local employment centers and educational institutions, and invest in the training and development of local employees.
Reasonably plan the introduction of foreign experts: Consider quota restrictions and approval procedures, and use foreign experts for knowledge transfer.
Provide competitive compensation: Conduct research on regional and industry salary levels, design reasonable benefit packages, and establish performance – based bonuses and incentive mechanisms.
Focus on employee career development: Establish training and skills – improvement mechanisms, create internal promotion channels, and cooperate with universities and training institutions.
Ensure strict compliance: Comply with the Labor Law and immigration regulations, and pay attention to regulatory changes.
Utilize government support policies: Apply for government subsidies, training funds, and other support projects.
7. Local Cultural Adaptation
Language: Kazakh is the only national language, and Russian has an official status and is widely used in business communication.
Religious Customs
Religious composition: Islam is the dominant religion (about 70%, mainly Sunni Hanafi). Orthodox Christians are mainly distributed among ethnic groups such as Russians, Ukrainians, and Belarusians.
Respect for Islamic customs: During Ramadan and Eid al – Adha, employees may fast or need specific prayer times. Avoid providing alcohol and pork – containing food in business activities, and pay attention to dressing in religious areas.
Orthodox festivals: Easter and Christmas are official holidays and should be respected.
Tolerant and inclusive workplace culture: Enterprises should create a diverse and inclusive working environment.
Business Culture
Relationship – oriented: Business cooperation highly depends on personal relationships. Build relationships before discussing terms.
Hierarchy and respect for elders: Enterprises have a strict hierarchy. Respect seniority and high – position people. Use formal addresses and polite language.
Hospitality culture: Participating in traditional meals is an important “soft capital” for relationship building.
Decision – making style – patience is key: The decision – making process is complex and slow. Be patient and persistent.
Indirect communication: Criticism and objections are usually expressed euphemistically. Observe and understand the context.
Punctuality: Punctuality for meetings is a basic professional quality.
Gift – giving culture: Small gifts are used for ice – breaking and expressing gratitude. There are strict regulations on gifts for public servants.
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