Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in Uzbek and use the Uzbekistani So’m currency (UZS).
Working Hours
The standard working week consists of 40 hours over the course of five or six days. Working hours are reduced for minors and employees in difficult and dangerous sectors.
Overtime
All work more than the standard working hours a week is to be paid as overtime and is regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed.
All overtime hours in excess of 40 hours a week are paid at an overtime compensation rate; this rate is stipulated in the employment contract/collective agreements etc. This rate is commonly 200.00% of the employees’ regular rate of pay.
Public Holidays
Uzbekistan has 15 public holidays.
For the year 2022:
- Jan 1: New Year’s Day
- Jan 14: Defenders of the Motherland Day
- Mar 8: International Women’s Day
- Mar 8: Mother’s Day
- Mar 20: March Equinox
- Mar 21: Iranian New Year’s Day
- May 2: Festival of Breaking the Fast
- May 9: Memorial/Remembrance Day
- Jun 21: June Solstice
- Jul 9: Feast of the Sacrifice
- Sep 1: Independence Day
- Sep 23: September Equinox
- Oct 1: Teacher’s Day
- Dec 8: Constitution Day
- Dec 21: December Solstice
- Dec 31: New Year’s Eve
Paid Time Off Mandatory Vacations
Employees are entitled to a minimum of 15 days of paid vacation year after completing 6 months of continuous employment. The paid leave entitlement may increase for minors and employees with difficult and dangerous jobs.
Sick Leave
Sick leave is paid by the employer but is excluded from the employer’s taxable income. Sick leave compensation must be paid to an employee in the event of illness, injury and in cases where an employee is caring for a sick family member, as well as in some other instances.
Sick leave compensation payment ranges between 60% to 80% of an employee’s average earnings, dependent on the employment contract, reasons for sick leave and length of service. In addition, employees are required to submit a medical certificate for any absence after their recovery and return to work.
In cases of a labor-related injury or occupational disease or other special qualification of the employee, the amount of sick leave compensation is 100% of the employee’s average earnings.
Maternity and Paternity
Maternity Leave
An employee is entitled to paid maternity leave of up to 126 days, 70 days of leave prior to the birth of a child and 56 days after the birth, 70 days in the case of multiple/complicated birth.
During maternity leave an employee is entitled to social security benefit of 100.00% of their regular salary.
Paternity Leave
There are no provisions in the law regarding paternity leave.
Parental Leave
There are no provisions in the law regarding parental leave.
Other Leave
In Uzbekistan, an employee is entitled to 56 days of paid leave following the adoption of a child; if an employee adopts multiple children, the entitlement increases to 70 days of paid leave.
Employee Severance and Terminations
Termination Process
The termination process varies according to the employment agreement or collective agreement in place and is based on the type of contract and reason for termination. However, no termination due to economic reasons or long-term disability can occur without the Employee Insurance Agency (UWV).
If an employee is a trade union member, the employer must receive approval before terminating the employee. Upon receipt of approval, the employee must proceed to dismiss the employee within one month.
Notice Period
Notice period depends on the reason for termination:
- Redundancy – 2 months’ notice
- Lack of qualification or health reason that impedes the employee’s ability to carry out their duties – 2 weeks’ notice
- Change in the company’s ownership – 2 months’ notice
- Gross misconduct or performance- 3 days’ notice
Payment in lieu of notice is permissible.
Severance Pay
The severance payment is one month’s salary for every two years of service from the employee.
Probation Period
An employment contract generally includes a period of probation which cannot exceed three months.
Payroll Cycle
The payroll frequency is typically monthly. Employers must make the payment of salaries on the last working day of the month.
The national minimum wage in Uzbekistan is 822,000 UZS.
13th Salary
In Uzbekistan, 13th-month payments are not mandatory. Employers can pay bonuses at their discretion.
Income Tax
12.00% flat rate for all employees.
Employer Payroll Contributions
Employer Social Tax
12.00% – 25.00% – Flat Rate (The rate of ST is 12% for all kind of entities with extension to certain new categories of taxpayers, including individual entrepreneurs and their employees, members of family enterprises, farming enterprises, and artisans, etc. Other organizations pay ST at the rate of 25%.)
VISA
Most nationals require either a B-1 Business Visa or a B-2 Business Visa to enter Uzbekistan to conduct business activities in Uzbekistan and must obtain it before travel from an Uzbek Consulate or Embassy.
Foreign nationals arriving from countries without an Uzbek consulate or embassy may apply for a visa upon arrival at the airport in Uzbekistan provided that a request for a visa upon arrival is included in a visa application form and approved by the Consulate Department of the Ministry of Foreign Affairs of Uzbekistan.
Apart from Turkmenistan and Tajikistan, nationals from the Commonwealth of Independent States (CIS) do not require a business visa and are visa-waivered to enter Uzbekistan and conduct business activities.
In Uzbekistan, the requirement for a work permit is generally determined by the nature of the work assignment. An employee can conduct most unremunerated activities on a short-term basis with a Business Visa. However, a legal assessment is recommended before travel to Uzbekistan.
Whether a work permit is required depends on levels of qualifications, employer entity, and nature of work. The most common Uzbek work authorization is a Work Permit (direct-hire work permit).
VAT
The standard rate of VAT in Uzbekistan is 15.00%.