How to hire and pay employees in Pakistan
Find out how to hire and pay employees in Pakistan. Help your business expand into new markets with our Global Payroll & Employer of Record services.
| Key Takeaways |
|---|
| 1. Payroll is monthly, with a minimum wage of KGS 2,865 per month for Kyrgyzstan employees. |
| 2. Personal income tax is flat 10%, with no local taxes on employment income. |
| 3. Standard working hours are 40 per week, with daily limits of 8 hours (5-day week) or 7 hours (6-day week), and overtime compensated at 150–200% of the normal rate. |
| 4. Annual leave is 28 calendar days, with flexibility for splitting and carryover according to law. |
| 5. Maternity leave is 70 days pre-natal and 56 days post-natal, paid via social insurance; paternity leave is 5 days unpaid. |
| 6. Termination and severance depend on reason: business closure or staff cuts require 1–2 months' notice and severance; probationary terminations require 3-day notice. |
| 7. Probation periods are up to 3 months for general employees, 6 months for managers/chief accountants. |
| 8. Public holidays total 19 days with weekly rest of at least 42 hours; work on holidays is compensated with double pay or time off. |
Discover the global hiring and employment landscape in Kyrgyzstan – an emerging market in Central Asia with a young and dynamic workforce.
Employment income in Kyrgyzstan is taxed at a flat rate of 10%.
There are no local taxes on employment income in Kyrgyzstan.
| Contribution rate | |
|---|---|
| Employee Recovery Fund | 0.25% |
| Medical Insurance Fund | 2% |
| Pension Fund | 15% |
The contribution to the Pension Fund shall be 3% in respect of foreigners temporarily residing in Kyrgyzstan.
| Contribution rate | |
|---|---|
| Pension Fund | 8% |
| State Savings Fund | 2% |
Employees shall be paid their wages at least once a month.
Effective January 1, 2025, the minimum wage in Kyrgyzstan is set at KGS 2,865 per month.
There is no statutory bonus in Kyrgyzstan.
An employment contract may be terminated by mutual agreement or unilaterally by either party, provided that the relevant procedures are follows.
Employers may dismiss their employees for reasons specified in Article 84 of the Labor Code, including, but not limited to the employee's incompatibility with the contracted work and misconduct.
Employees can be dismissed for their incompatibility with the work due to health conditions or insufficient qualifications only if it is not possible to transfer them to another work upon their agreement.
Employers who dismiss their employees for disciplinary reasons must adhere to the disciplinary procedures established in Articles 149–153 of the Labor Code.
Employees may resign, regardless of if their contract is for an indefinite or fixed term, by sending a 2-week written notice to the employer.
Employers dismissing their employees are obligated to observe the following notice periods:
| Reason for dismissal | Notice period |
|---|---|
| Business closure or staff cuts | 1 month |
| Employee's incompatibility with the work due to health conditions or insufficient qualifications | 2 weeks |
During the notice period the employee shall be given a paid day off per week to look for a new job.
Upon the termination of the employment contract, the employer may be obligated to pay their employees the following severance:
| Reason for termination | Severance |
|---|---|
| Business closure or staff cuts | 2 months' average wages |
| Employee's incompatibility with the work due to health conditions | 1 month's average wages |
Note: Different severance pay may apply depending on the reason motivating the employee's termination, including those not listed above.
Employment contracts may include a probationary period of up to 3 months or, for managers, chief accountants and their deputies, up to 6 months.
Unsuccessful probationary period enables the employer to terminate the contract before the probationary period expires with a 3-day written notice. The employer shall state their reasons for failing the employee in writing.
Note: Probationary period shall not include periods of temporary disability and other periods when the employee is not at the workplace.
Normal working hours are subject to a maximum of 40 hours per week and the following daily maximums:
| Maximum daily working hours | |
|---|---|
| 5-day workweek | 8 hours |
| 6-day workweek | 7 hours |
The duration of the working day preceding a public holiday shall be reduced by an hour, though this does not apply to those working in organizations with reduced timetable.
Employees shall be entitled to break for rest and meals of at least 30 minutes, and up to an hour in total, which shall not be included as part of their work time.
Moreover, breastfeeding employees with children under 1.5 years old shall be entitled to a nursing break for 30 minutes every 3 hours, which is included as part of their work time. If the employee has 2 or more children under the age of 1.5, the length of their nursing break shall be at least an hour.
Overtime work is a work carried out by the employee upon employer's initiative in excess of established working hours, and they can be called up upon the suggestion, order or consent of an employer and upon the written agreement of the employee.
| Employee category | Is overtime work allowed? |
|---|---|
| Disabled persons and pregnant women | Yes, unless such regime is prohibited due to medical statement |
| Employees carrying out difficult physical work, or work in harmful or hazardous labor conditions. | No |
| Minors | No |
No overtime work for more than 4 hours within 2 consecutive days shall be allowed for the same employee, and they must be compensated as follows:
| Overtime | Overtime pay |
|---|---|
| First 2 hours | 150% of the employee's normal rate |
| Subsequent hours | 200% of the employee's normal rate |
If so requested by the employee, overtime work can be compensated with rest time of no less than the amount of overtime instead.
Employees shall be entitled to a weekly rest of at least 42 consecutive hours, with Sunday being the general day off.
Organizations where suspension of work for days off is impossible due to production, technical and organizational conditions shall grant their employees days off in different days of week, in accordance with their internal labor schedule.
It is normally prohibited for employees to work on their rest days unless they have consented in any of the circumstances listed in the Labor Code.
The work on a day off may be reimbursed by mutual agreement of the parties by providing another day off or by prolongation of the annual leave, or by at least double payment.
Employees shall be released from their job responsibilities during public holidays and are free to use the time at their own discretion. There are 19 days of public holidays in Kyrgyzstan for 2025.
| Holiday | Date |
|---|---|
| New Year’s Day | January 1 |
| Orthodox Christmas Day | January 7 |
| Homeland Defender's Day | February 23–24 |
| Women’s Day | March 8, 10 |
| People's Holiday of Nooruz | March 21 |
| Orozo Ait | March 30 |
| People’s April Revolution Day | April 7 |
| Labor Day | May 1 |
| Constitution Day | May 5 |
| Victory Day | May 9 |
| Kurman Ait | June 6 |
| Independence Day | August 31–September 1 |
| Anniversary of the Great October Socialist Revolution | November 7–10 |
If the work is impossible to stop due to the specifics of the trade and technology, the work being required to serve the public or for emergency repairs, it shall be permitted to be performed on the holidays.
In all other cases, the conditions permitting work on public holidays and their compensation are the same as those for work on rest days.
Employees are entitled to 28 calendar days of paid annual leave at their average wage. Employee shall have the right to their leave in their first year after 11 consecutive months of service, though the parties may agree to grant the leave earlier.
Order of granting annual leave shall be determined annually in accordance with the schedule approved by the employer 2 weeks prior to the start of the new calendar year.
Employers and employees may agree to split annual leave into parts, provided that no part is less than 14 calendar days.
Annual leave can be prolonged or postponed in cases stipulated in Article 131 of the Labor Code. However, the leave cannot be postponed for 2 years in a row.
Note: Part of the leave in excess of 14 calendar days can be compensated in cash upon the written request of the employee.
During temporary incapacity for work, the employer shall pay to the employee temporary incapacity allowance in accordance with the law on social insurance.
Employees shall be entitled to 70 calendar days of pre-natal leave and 56 calendar days of post-natal leave, paid for by social insurance. The duration of post-natal leave shall be increased to 70 calendar days in case of complicated childbirth and for cases of multiple births.
Employees can request for 5 calendar days of unpaid leave in case of childbirth.
Upon request, a working woman shall be granted additional unpaid maternity leave until their child reaches the age of 18 months, and the parties may agree to further increase the leave for 18 more months.
This leave can also be used in its entirety or by parts by the child's father, grandmother, grandfather and any other relative taking care of the child.
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Bereavement Leave | Unpaid | 5 calendar days | Employees can request for this leave in case of death of their immediate relatives. |
| Carer's Leave | Paid | 1 day per month |
One of the parents of a child can make a written application for this leave to look after their disabled child until they reach 18 years old. The employee may further request for an additional 14 days of unpaid leave per year for this reason. |
| Disability Leave | Unpaid | 60 calendar days per year | Working disabled employees can request for this leave. |
| Marriage Leave | Unpaid | 5 calendar days | Employees can request for this leave in case marriage registration. |
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