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Employer of Record (EOR) Services in Uzbekistan

Employer of Record


$399/month

Contractor 
Management

$49/month

Talent Sourcing


2% of gross salary / month

Start hiring in Uzbekistan

Simple, compliant hiring with Horizons EOR & PEO

Hire in Uzbekistan

Uzbekistan is a Central Asian state in a period of growth and transition. Its government recently introduced a series of measures intended to put the country on the right trajectory for a successful future. These include energy reforms, redevelopment of infrastructure, and increasing competition while diversifying into new industries. Uzbekistan has a rapidly growing population with strong competition for employment. When combined with an average monthly wage of under $400, this translates to a territory that offers huge opportunities for foreign businesses seeking to expand their labor force into the area. 

Facts & Stats

EOR Platform

Hire in Uzbekistan, and pay employees through our platform or app.

EOR Cost

Our Uzbekistan EOR solution is the most affordable on the market.

Time-to-hire

Fast Uzbekistan onboarding, hire in as little as 24 hours.

Contracts

We draft compliant Uzbekistan labor contracts.

Local benefits

We manage all Uzbekistan mandatory benefits.

180+ Countries

It doesn’t stop with Uzbekistan — we hire employees globally.

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What Is a Uzbekistan EOR?

An Employer of Record (EOR) is a recruitment and human resource management service that focuses on providing local labor forces for global businesses. In Uzbekistan, this means creating opportunities for local talent while allowing foreign companies to benefit from the ready supply of cost-effective workers seeking employment beyond what is available in their home country. The EOR achieves this by acting as the legal employer of Uzbek workers, who it then assigns to roles required by foreign clients. This significantly streamlines the process of hiring in Uzbekistan, not least because it removes the requirement for the foreign employer to go through the challenging process of establishing its own local entity within the region.

It is this role as a proxy local entity that marks out an EOR from the similar services offered by a Professional Employer Organization (PEO). While these two terms are often used interchangeably, a PEO acts only as a human resources management service and does not fulfill the essential role of a local entity. Therefore, while working with a PEO does offer some benefits to a foreign employer, it doesn’t remove the complex and costly need to establish a legal entity in Uzbekistan.

Save Money And Time with A Uzbekistan EOR

What Are the Benefits of a Uzbekistan EOR?

In Uzbekistan, working with an EOR is one of the most efficient ways of creating and managing a successful labor force. By assuming the role of a local entity, and liability for compliance with all laws, an EOR allows businesses to begin recruiting quickly and onboarding a new team without complications.

Included in the several benefits offered by an Uzbekistan EOR are:

  1. Cultural fluency: The official languages spoken in Uzbekistan are Uzbek, Russian, and, in some regions, Karakalpak. The vast majority of its 37 million population is Muslim. For Western employers, these language barriers and cultural differences can present challenges when attempting to build working relationships. An Uzbekistan EOR provides local knowledge and experience which can help ensure communication and collaboration go smoothly and relations grow to fulfill their maximum potential.
  2. Talent spotting: Finding the best talent for any role is a challenge employers battle with every day, even in their home country. When working in unfamiliar territory, ensuring you find the best labor for the right cost becomes even more testing. As a service whose sole purpose is to understand the local labor market, an Uzbekistan EOR is best positioned to reach the right people and develop the optimum compensation package with which to attract and keep them.
  3. Quick growth: Hiring a new labor force in Uzbekistan without the help of an EOR can take months. The complexities of establishing a local entity, researching the labor market, and beginning recruitment can be lengthy, costly, and expose the business to a prohibitive level of risk. When employing through an EOR, the first workers can be in place within weeks, perhaps even days, with minimum cost or jeopardy to the foreign business.
Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Uzbekistan EOR through:

  1. A strong regional presence in the Asia-Pacific region, meaning senior management are on the ground to deal with any issues.
  2. Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
  3. Cost-effective solutions. At $499 per employee, per month, no EOR in Uzbekistan is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
  4. A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
  5. A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client.  Horizons is:
    • The only EOR doing this in-house — no subcontracting
    • The only EOR doing this without a retainer — clients are only charged upon success
    • The only EOR charging just a 2% fee per month
Step-by-step Uzbekistan EOR

How Does a Uzbekistan EOR Work?

An Uzbekistan EOR works by connecting global businesses to local talent and local workers to opportunities with foreign employers. It achieves this by applying specialist knowledge of the labor market and the laws which govern it. A high-quality EOR will also have a fluent understanding of local cultures and how to establish respectful and productive relationships to ensure all parties receive maximum benefits with minimum complications. By assuming the role of a local employer, an Uzbekistan EOR allows its foreign clients to outsource all elements of handling a labor force within the region while the business itself focuses on its goals for growth.

As part of performing its services, an Uzbekistan EOR will:

  1. Hire your employees: Once an agreement to begin hiring in Uzbekistan with an EOR is made, the first step is recruitment. The EOR will assess what roles must be filled and begin searching for the workers who are best suited to them. This may happen through a general advertising and assessment model or by hand-selecting known workers from an existing pool of talent.
  2. Manage employment contracts and onboarding: After an Uzbekistan EOR has found the right candidates for the positions it needs to fill, it will move to the onboarding process. This begins with arranging contracts and having all parties sign to show the terms of employment are agreed. The EOR will then take each worker through the onboarding protocols required to prepare them for starting work before handing them over to the foreign client to begin their service.
  3. Process payroll and handle employment taxes: While it may appear from the outside that the Uzbek workers are employed by the foreign business for whom they perform duties each day. It is the EOR who remains their legal employer and is responsible for fulfilling payroll and handling any tax obligations throughout the length of their service.
  4. Administer benefits: In line with its payroll obligations, an Uzbekistan EOR will also administer any benefits due to workers as part of the employment package. This includes ensuring annual leave and other paid absences are granted, that social security contributions are paid, and that any agreed bonuses and allowances are provided when appropriate.
  5. Take care of exit procedures: Every employment comes to an end, whether through mutual agreement, due to the employee’s fault, or because of changing business needs. An Uzbekistan EOR’s responsibilities do not end until all legally and company-required exit procedures have been executed. This might involve giving written notice, delivering severance pay, or completing exit interviews. Once a worker leaves, should a replacement be required, the EOR will begin the hiring process once again.
stay compliant with Uzbekistan labor laws

Labor Laws

One of the primary services of an Uzbekistan EOR is to ensure compliance with all local labor laws. As the legal employer of each worker, the EOR is liable for any issues or disputes caused by incorrectly followed regulations.

Employment contract types

Uzbekistan law requires written contracts to be drafted and signed for any employment. While these vary from role to role, they must all contain clauses that detail the parties involved, the job description, the type of employment, the compensation and benefits package, and the termination processes. When appropriate, they should also cover protocols for grievances and ownership of intellectual property.

Project-based

Probationary period

No probationary period.

Termination

At completion of the project.

Severance

Not applicable

Fixed-term

Probationary period

Typically up to 3 months

Termination notice period

2 weeks

Severance

Not applicable

Indefinite

Probationary period

Typically up to 3 to 6 months

Termination notice period

30 days (minimum and maximum allowed by labor law)

Severance

1 month salary per year of service

Working hours in Uzbekistan

In Uzbekistan, a standard working week is considered to be 40 hours spread across no more than six days. This converts to seven hours per day if working a six-day week or eight hours per day if working for five. Except in certain situations, overtime can only be worked by mutual consent and should total no more than four hours in two days or 120 hours in a calendar year. Any overtime hours should be paid at least double the worker’s standard rate.

Overtime must be compensated in the following way:

For a regular workday:

200% of the standard hourly rate

For a rest day:

200% of the standard hourly rate

For a statutory holiday:

300% of the standard hourly rate

Uzbekistan workers should be granted paid leave for several public holidays each year. In 2024, this includes six secular holidays on fixed dates plus other moveable dates in line with the Islamic calendar.

 

DateHoliday name
1 Jan, 2024New Year’s Day
8 Mar, 2024International Women’s Day
21 Mar, 2024Nowruz
10 Apr, 2024Eid al-Fitr
11 Apr to 12 AprEid al-Fitr Holiday
9 May, 2024Victory Day
16 Jun, 2024Eid al-Adha
1 Sep, 2204Independence Day
1 Oct, 2024Teacher’s Day
8 Dec, 2024Constitution Day

Paid time off

Paid leave should be granted to both male and female employees required to perform jury duty. Other types of paid leave, such as paternity, parental, and bereavement, are at the discretion of the employer.

The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:

Under 1 year of employment

no leave entitlement

1-10 years of employment

15 days of paid leave annually

10-20 years of employment

15 days of paid leave annually

20+ years of employment

15 days of paid leave annually

Sick leave in Uzbekistan

While there is no official limit on sick leave defined by law in Uzbekistan, it is generally agreed that employees should receive a maximum of 30 days of paid sick leave each year, occasionally extended to 60 for extended illnesses if agreed by a medical commission.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Under 1 year of employment

no leave entitlement

1-10 years of employment

30 days of paid leave annually

10-20 years of employment

30 days of paid leave annually

20+ years of employment

30 days of paid leave annually

Over 6 months of sick leave

Under 1 year of employment

Unpaid (unless specified in the employment contract or under special circumstances)

1-3 years of employment

Unpaid (unless specified in the employment contract or under special circumstances)

3+ years of employment

Unpaid (unless specified in the employment contract or under special circumstances)

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Uzbekistan

Minimum maternity leave entitlement in Uzbekistan is set at 126 days with full pay. This is divided into 70 days before birth and 56 days after. Employees who adopt should also be given 56 days paid leave after the arrival of the child or 70 days in the case of multiple children. 

Annual leave in Uzbekistan

In addition to public holidays, every worker in Uzbekistan who has completed at least six months of service is entitled to a minimum of 15 days paid annual leave each year. Employees such as minors and disabled workers may also be entitled to more.

Termination & severance in Uzbekistan

Notice periods required to be given to Uzbek employees are two months when termination is due to changes in the business, two weeks if the worker is unable to fulfill their duties due to health or insufficient qualifications, and two days if termination occurs during a probationary period. If termination is not due to employee fault, severance must be paid beginning at 50% of monthly salary for the first three years and rising in intervals to a maximum of 200% after 15 years of continuous service.

Uzbekistan's compulsory social security contributions

In Uzbekistan, the social security contributions are part of the national social insurance system, which includes contributions to pension, healthcare, and other social benefits.

Employers are required to contribute a percentage of their payroll towards social security, usually around 25% and employees also contribute around 8 to 10%.

A significant portion of the contributions goes towards the pension fund, which provides retirement benefits to employees. Contributions also cover other social insurance benefits, such as maternity leave, disability benefits, and family support programs.

Uzbekistan social security for foreigners

Foreign employees working in Uzbekistan are generally required to participate in the social security system, unless exempted by specific international agreements or treaties.

Individual income tax

Uzbekistan employs a flat tax rate of 12% on individual income. This applies to most forms of personal income, including salaries, wages, and other earnings.

Health insurance

The government has introduced a Mandatory Health Insurance Fund (MHIF) to improve the quality and accessibility of healthcare services. In addition to the state-funded system, private health insurance options are available for those who want additional coverage or access to private healthcare facilities.

hassle-free Uzbek compensation & benefits

Compensation & Benefits

Uzbekistan compensation laws

Since March 26, 2024, a minimum wage has been set in Uzbekistan by presidential decree. This is currently UZS 1,050,000, or a little over $80, and is subject to reevaluation and adjustment each year.

13 month salary in Uzbekistan

No 13th-month salary payments or any other bonuses and allowances are mandated by law in Uzbekistan. 

Social security for Uzbek nationals

Workers in Uzbekistan are required to contribute 4% of their salary to a state social security fund. Employers must also make payments totaling between 12% and 25% to a Social Tax in addition to pension fund contributions on behalf of each employee.

Hire borderless talent with Horizons

Hire in Uzbekistan without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

Compliance with local labor law is one of the prime responsibilities of an Uzbekistan EOR. It does this by maintaining a thorough and up-to-date knowledge of all employment regulations and assuming full responsibility for ensuring they are followed at every step of the employment cycle.

Working with an EOR in Uzbekistan allows a foreign business to begin hiring without delay and to know it is getting the best access to the right talent at the most competitive price. As a specialist service with strong local knowledge and experience working in the Uzbek labor market, an EOR is best placed to deliver an effective labor force for any global client.

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