How to Use An Employer of Record in
Kazakhstan

Hiring employees in Kazakhstan means navigating the Labour Code of the Republic of Kazakhstan, which mandates employer social contributions totaling 11% of gross salary plus individual social tax of 9.5%, alongside monthly reporting to the State Revenue Committee and Social Insurance Fund. An Employer of Record becomes the legal employer under Kazakhstan law, giving you full operational control of your team while the EOR handles all statutory payroll, contributions, contract issuance, and government filings without you needing a registered entity in-country. This removes the burden of obtaining a taxpayer registration number (TRN) from the State Revenue Committee, registering as an employer with the Social Insurance Fund, and maintaining compliant employment contracts in Kazakh or Russian with all mandatory clauses.

What Is an Employer of Record in Kazakhstan?

An Employer of Record in Kazakhstan is a third-party organisation that becomes the legal employer of your staff under Kazakhstan law, handling all statutory obligations, payroll, and compliance while you retain full operational control. The EOR's name appears on the employment contract, government registrations, and payroll filings, but your team works exclusively for you, following your direction, projects, and performance standards. This structure lets you hire Kazakhstan-based employees without incorporating a local entity or navigating the State Revenue Committee's employer registration process yourself.

Under the Labour Code of the Republic of Kazakhstan, every employment relationship requires a written contract specifying mandatory terms including salary, work schedule, probation period if applicable, and social guarantees. Employers must register contracts with the State Revenue Committee within three working days of the employee's start date, contribute to the mandatory state social insurance system and pension funds, and comply with any applicable collective agreements or sectoral norms. The EOR ensures your contracts meet all statutory requirements, calculates and remits employer social contributions at the correct rates, and files monthly wage reports (Form 200.00) with the tax authority on your behalf.

You retain complete control over day-to-day management, task assignment, performance reviews, promotions, and business outcomes. The EOR owns the legal employment relationship, issues compliant contracts, processes monthly payroll in tenge, withholds and remits individual income tax and employee contributions, manages statutory leave accruals, and handles termination procedures including severance calculations and final settlement documentation under Article 53 and Article 54 of the Labour Code.

How Does an Employer of Record Work in Kazakhstan?

When you hire through an Employer of Record in Kazakhstan, the process follows a structured sequence that balances speed with full legal compliance. The EOR takes responsibility for every statutory step, from contract drafting under the Labour Code to monthly tax filings with the State Revenue Committee. You focus on selecting the right candidate and managing their work, while the EOR ensures every employment obligation is met on time and in full.

Step 1: Define Role Terms

You provide the EOR with job title, salary, work schedule, reporting line, and any specific benefits or allowances. The EOR reviews whether the role falls under any sectoral collective agreement or branch-level minimum wage that exceeds the national minimum. In Kazakhstan, some industries have negotiated collective agreements that set higher base pay or additional guarantees, and the EOR ensures your offer meets or exceeds these thresholds before proceeding. This step typically takes one to two business days once you provide complete information.

Step 2: EOR Compliance Check

The EOR verifies that your proposed salary meets the national monthly minimum wage of 85,000 tenge as of 2026, set by Government Resolution No. 1040 and updated annually. Standard working time in Kazakhstan is 40 hours per week under Article 68 of the Labour Code, and the EOR confirms your schedule complies with daily and weekly limits. The EOR also assesses whether the role is correctly classified as an employee relationship rather than a contractor arrangement, since misclassification exposes you to back taxes, penalties, and potential reclassification orders from the State Labour Inspectorate. This compliance review is completed within one business day.

Step 3: Draft Employment Contract

The EOR prepares a written employment contract in Kazakh or Russian, as required by Article 28 of the Labour Code. The contract must include the employee's full name and identification number, employer legal details, job title and description, place of work, start date, salary and payment terms, working hours and rest periods, duration if fixed-term, and social guarantees including leave entitlements. Probation periods up to three months for most roles (six months for senior management under Article 36) must be explicitly stated in the contract. Fixed-term contracts are permitted only for project work, seasonal roles, temporary absence cover, or other justified grounds listed in Article 49, and cannot exceed five years. The EOR issues the signed contract to the employee and provides you with a copy, typically within two to three business days of receiving final approval from both parties.

Step 4: Government Registrations

The EOR must register the employment contract with the State Revenue Committee within three working days of the employee's start date, as mandated by Article 35 of the Labour Code. This registration links the employee to the EOR's taxpayer registration number and enables monthly wage reporting through Form 200.00. The EOR simultaneously notifies the Social Insurance Fund to ensure the employee is covered for sickness, maternity, and employment loss benefits from day one. Late or missing registration can result in administrative fines from the State Revenue Committee ranging from 20 to 50 monthly calculation indices (approximately 400,000 to 1,000,000 tenge in 2026) and denial of social insurance claims for the employee. The registration process is electronic and typically completed within one to two business days.

Step 5: Payroll Execution

The EOR processes payroll in Kazakhstan tenge on a monthly cycle, with payment due by the last working day of the month under Article 110 of the Labour Code. The EOR withholds individual income tax at 10% of gross salary and employee pension contributions at 10% of gross, remitting both to the State Revenue Committee by the 25th of the following month. The EOR also calculates and pays employer obligations: social contributions at 3.5% for social insurance, 5% for mandatory social health insurance, and 1.5% for employment loss insurance, plus 1% for vocational training, totaling 11% of gross payroll. Individual social tax at 9.5% of gross minus the social contributions amount is also due. All payments and corresponding Form 200.00 declarations are submitted electronically through the State Revenue Committee's cabinet.salyk.kz portal.

Step 6: Ongoing Compliance

The EOR files Form 200.00 wage and tax reports monthly with the State Revenue Committee, due by the 15th of the month following the pay period. Pension contribution data is reported quarterly to the Unified Accumulative Pension Fund (UAPF). The EOR maintains accurate records of working time, leave accruals, and salary changes as required by the State Labour Inspectorate, which conducts periodic audits of employment practices. Annual paid leave of 24 working days accrues monthly and must be granted within the calendar year or carried forward only with employee consent under Article 93. The EOR tracks public holidays (13 days in Kazakhstan in 2026) and ensures these non-working days are paid in full. Any changes to the Labour Code or social contribution rates issued by the Ministry of Labour and Social Protection are monitored and implemented immediately to keep your employment terms compliant.

Step 7: Termination Procedures

Employment termination in Kazakhstan requires documented just cause unless initiated by the employee with written notice. Article 52 and Article 53 of the Labour Code list permissible grounds including redundancy, performance deficiency after two failed improvement plans, contract expiry if fixed-term, or mutual agreement. Notice periods are typically one month for most roles, but collective agreements may require longer periods for certain categories. Severance pay is mandatory for redundancy and equals average monthly salary multiplied by the number of full years of service, calculated under Article 54. The EOR prepares all termination documentation, calculates final settlement including unused leave compensation, processes the final payslip, and notifies the State Revenue Committee and Social Insurance Fund to close the employee's registration within three working days of the termination date.

Employment Laws and Compliance an Employer of Record Handles in Kazakhstan

When you hire through an Employer of Record in Kazakhstan, they take on full compliance responsibility across every dimension of employment law, so you do not need to build an in-country HR function or engage local legal counsel for routine employment matters.

• Employment Contracts and Registration: The EOR drafts contracts in Kazakh or Russian that comply with Article 28 of the Labour Code, including all mandatory clauses such as salary, working hours, job description, social guarantees, and probation terms. The EOR registers each contract with the State Revenue Committee within three working days of the employee's start date, as required by Article 35. Failure to register on time results in administrative fines and can invalidate the employment relationship, exposing the employer to back pay claims and penalties from the State Labour Inspectorate.
• Income Tax Withholding: The EOR withholds individual income tax at the flat rate of 10% from employee gross salary and remits it to the State Revenue Committee by the 25th of the following month, as required by the Tax Code of the Republic of Kazakhstan. Non-resident employees working in Kazakhstan are taxed at the same 10% rate on Kazakhstan-source income. Late or incorrect withholding triggers penalties of 20% of the unpaid amount plus daily interest, with personal liability potentially extending to the company's in-country representative if the employer is unregistered.
• Social Security and Pension Contributions: The EOR calculates and pays employer social contributions totaling 11% of gross payroll, broken down as 3.5% to the Social Insurance Fund, 5% for mandatory social health insurance under Law No. 405-V, 1.5% for employment loss insurance, and 1% for vocational training. Employee pension contributions at 10% of gross salary are withheld and remitted to the Unified Accumulative Pension Fund (UAPF). Individual social tax at 9.5% of gross payroll minus the social contributions amount is paid to the State Revenue Committee. Underpayment or late submission results in penalties, interest charges, and potential suspension of the employer's right to conduct business activities in Kazakhstan until arrears are cleared.
• Statutory Leave Entitlements: The EOR accrues and manages annual paid leave of 24 working days per year under Article 93 of the Labour Code, plus additional leave for employees in hazardous conditions or with disabilities as specified in sectoral regulations. Public holidays in 2026 include 13 non-working days such as New Year (1-2 January), International Women's Day (8 March), Nauryz (21-23 March), Unity Day (1 May), Victory Day (9 May), Capital City Day (6 July), Constitution Day (30 August), and Independence Days (16-17 December). Employees who work on public holidays must receive double pay or compensatory time off. The EOR ensures leave is granted in accordance with the employee's written request and maintains records for inspection by the State Labour Inspectorate.
• Termination and Severance: The EOR manages all termination procedures in line with Article 52 and Article 53 of the Labour Code, ensuring just cause is documented and notice periods are observed. Severance pay is mandatory for redundancy and calculated as average monthly salary multiplied by years of service, paid within three working days of termination under Article 54. The EOR prepares the termination order, final settlement statement, employment history certificate (trudovaya knizhka extract or electronic equivalent), and notifies the State Revenue Committee and Social Insurance Fund to close the employee's registration. Failure to follow correct procedures can result in reinstatement orders, back pay liability, and compensation for moral damages awarded by labor dispute commissions or courts.
• Working Time and Overtime: The EOR enforces the standard 40-hour work week prescribed by Article 68 of the Labour Code, with daily limits of eight hours for a five-day week or no more than six to seven hours for a six-day week. Overtime is permitted only with employee consent and capped at two hours per day and 120 hours per year, compensated at 1.5 times the hourly rate for the first two hours and double for subsequent hours under Article 133. The EOR maintains accurate time records and ensures rest periods of at least 42 consecutive hours per week are provided, as required by the State Labour Inspectorate during audits.
• Health and Safety: The EOR ensures compliance with the Labour Code's Chapter 10 on occupational safety, which requires employers to provide safe working conditions, conduct risk assessments, and arrange mandatory medical examinations for employees in certain roles or industries. Employers must report workplace accidents and occupational illnesses to the State Labour Inspectorate and the Social Insurance Fund within 24 hours. The EOR maintains workplace safety documentation, arranges required training, and coordinates with local occupational health providers as necessary. Non-compliance can result in administrative fines, suspension of operations, and criminal liability in cases of serious injury or death.
• Data Protection and Privacy: The EOR handles employee personal data in accordance with the Law of the Republic of Kazakhstan on Personal Data and Its Protection (No. 94-V), which requires lawful basis for processing, employee consent for non-statutory purposes, secure storage, and rights of access and correction. Cross-border data transfers to your company outside Kazakhstan must be documented and may require additional safeguards depending on the destination country. The Ministry of Digital Development, Innovations and Aerospace Industry enforces data protection rules, and breaches can result in administrative fines and orders to cease processing.
• Collective Agreements and Sectoral Norms: The EOR monitors any collective agreements applicable to the employee's industry or the EOR's own workforce, ensuring compliance with negotiated terms that may exceed statutory minimums for pay, leave, or working conditions. Kazakhstan's Labour Code recognizes sectoral and company-level collective agreements as binding, and employees covered by these agreements are entitled to the higher standard. The EOR participates in or adheres to relevant collective bargaining frameworks and reports obligations to trade unions where applicable, avoiding disputes and potential strikes or labor commission claims.
• Work Permits and Migration Compliance: For foreign nationals employed in Kazakhstan, the EOR sponsors and obtains work permits from the Ministry of Labour and Social Protection, which requires a quota allocation and labor market test for most roles. The EOR also arranges residence permits through the Migration Police Committee and ensures compliance with visa validity, registration within five working days of arrival, and exit requirements. Employing foreign nationals without valid work authorization results in fines of up to 200 monthly calculation indices per employee (approximately 4,000,000 tenge in 2026), deportation of the employee, and potential bans on future hiring of foreign workers.

How Much Does It Cost to Use an Employer of Record in Kazakhstan?

The total cost of hiring through an Employer of Record in Kazakhstan has two components: the EOR's service fee and statutory employer contributions mandated by Kazakhstan law. Statutory costs are fixed percentages set by the Tax Code, the Law on Mandatory Social Insurance, and annual government resolutions on minimum wage and contribution rates. Playroll's service fee starts from $399 per employee per month, billed separately from payroll and statutory costs, and covers all compliance, contract management, government filings, and ongoing support.

Let's look at an example that includes a base salary and the EOR service fee.

The EOR service fee covers employment contract drafting and registration with the State Revenue Committee, monthly payroll processing in tenge, calculation and remittance of all employer and employee taxes and contributions, Form 200.00 filing, ongoing compliance monitoring for Labour Code changes, leave accrual tracking, and termination procedures including severance calculations and government notifications. You receive transparent monthly invoicing with full payroll breakdowns and audit-ready documentation for your finance team.

Employer of Record vs Setting Up an Entity in Kazakhstan

Deciding between an Employer of Record and incorporating your own entity in Kazakhstan depends on your hiring scale, timeline, and long-term commitment. Foreign companies typically establish a Limited Liability Partnership (LLP, or ТОО in Kazakh) or a branch office, both requiring registration with the Ministry of Justice, obtaining a taxpayer registration number from the State Revenue Committee, and opening a corporate bank account. The process takes three to six months on average and costs between $15,000 and $30,000 in legal, notary, registration, and setup fees, plus ongoing accounting and compliance costs of $2,000 to $4,000 per month even with minimal activity.

For companies hiring fewer than 15 employees in Kazakhstan, an Employer of Record is almost always the faster and more cost-effective route.

Playroll also supports your long-term growth through its Global Entity Setup product, which handles entity incorporation and local payroll in 120+ countries, so you can transition from EOR to your own compliant entity in Kazakhstan when the time is right, without switching providers or rebuilding your HR processes.

How Long Does It Take to Hire Someone in Kazakhstan Through an Employer of Record?

You can hire an employee in Kazakhstan through an Employer of Record in 10 to 15 business days from signed offer to first day of work, assuming the candidate provides required documents promptly and no compliance issues arise during the EOR's initial review.

• Stage 1: Contract preparation and signing (2 to 3 business days): The EOR drafts the employment contract in Kazakh or Russian with all mandatory clauses required by Article 28 of the Labour Code, incorporates your agreed salary and benefits, and sends it to the employee for signature. Timing depends on how quickly you approve the draft and the employee returns the signed document. If you request multiple revisions or the employee negotiates terms, this stage can extend to five business days.
• Stage 2: Government registrations (1 to 2 business days): The EOR submits the signed contract to the State Revenue Committee for registration within three working days of the employee's start date, as required by Article 35 of the Labour Code, and notifies the Social Insurance Fund to activate coverage. These filings are electronic and typically processed within one business day. Missing the three-day registration deadline triggers administrative fines and can delay the employee's access to social insurance benefits, so the EOR prioritizes this step immediately after contract signing.
• Stage 3: Payroll configuration and first cycle (2 to 3 business days): The EOR sets up the employee in the payroll system, configures tax and contribution withholdings, and schedules the first salary payment for the last working day of the month under Article 110 of the Labour Code. Kazakhstan operates on a monthly pay cycle, so if the employee starts mid-month, their first payslip will be prorated for days worked. Payroll configuration runs in parallel with government registrations and does not add to the overall timeline.
• Stage 4: Kazakhstan-specific requirements (runs in parallel): If the employee is a foreign national, the EOR must apply for a work permit through the Ministry of Labour and Social Protection, which requires a quota allocation and labor market test and can take 30 to 60 business days. For Kazakhstan citizens or existing work permit holders, no additional time is required. This requirement is the most common cause of extended timelines, but for local hires it does not delay the start date.

Delays can occur if the employee provides incomplete identification documents, if your proposed salary falls below a sectoral collective agreement minimum requiring renegotiation, or if the role classification is unclear and the EOR needs additional information to ensure correct tax treatment and social insurance coverage. Hiring during Kazakhstan public holidays such as Nauryz (21 to 23 March) or New Year (1 to 2 January) can also add two to three business days due to government office closures.

By comparison, incorporating your own entity in Kazakhstan and hiring your first employee directly takes three to six months from company registration to compliant payroll setup, plus the cost of engaging local accountants, legal counsel, and HR advisors throughout the process.

How Playroll's Employer of Record Process Works in Kazakhstan

Playroll makes hiring in Kazakhstan straightforward by handling every compliance step while you stay focused on building your team.

1. You define who you want to hire

You provide the candidate's details, job title, salary, start date, and any specific benefits or allowances. Playroll reviews your proposed terms against the national minimum wage of 85,000 tenge, any applicable collective agreement minimums, and standard employment practices in Kazakhstan to confirm the offer is competitive and compliant before proceeding.

2. Playroll prepares a compliant contract

Playroll drafts the employment contract in Kazakh or Russian, incorporating all mandatory clauses required by Article 28 of the Labour Code including job description, salary, working hours, probation period if applicable, and social guarantees such as annual leave. You and the employee review and sign the contract, and Playroll registers it with the State Revenue Committee within three working days of the start date.

3. Employee onboarded and payroll goes live

Playroll completes government registrations with the State Revenue Committee and Social Insurance Fund within one to two business days of contract signing, sets up the employee in payroll with accurate tax and contribution withholdings, and processes the first salary payment on the last working day of the month. Your new hire is fully compliant and working under a legally sound employment relationship from day one, typically within 10 to 15 business days of initial approval.

4. Playroll manages ongoing compliance

Playroll files monthly Form 200.00 wage reports with the State Revenue Committee, remits all employer and employee taxes and contributions by the 25th of each month, tracks leave accruals and public holidays, and monitors changes to the Labour Code or social contribution rates issued by the Ministry of Labour and Social Protection. If your hiring in Kazakhstan grows to where incorporating your own entity makes sense, Playroll can handle that too through its global entity setup service, managing incorporation, registration, and local payroll setup so you can transition smoothly without changing providers or rebuilding your employment infrastructure.