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Employer of Record Uzbekistan | Employee Benefits in Uzbekistan

Employer of Record services in Uruguay offer comprehensive support in various areas, including managing the payroll cycle, handling employer and employee contributions, ensuring compliance with minimum wage regulations, facilitating the process of hiring employees and contractors, assisting with the recruitment of expatriates, conducting background checks, drafting employment contracts, facilitating onboarding procedures, managing employee benefits, administering social security programs, coordinating healthcare and insurance coverage, implementing leave policies, considering public holidays, assisting with work permit and work visa processes, overseeing probation periods, notice periods, termination, and severance procedures, as well as providing guidance on personal income tax obligations.

Time zoneUTC+05:00 (Uzbekistan Time)
Total Time zones1
Working hours per weekNA
Working weekNA
Typical hours workedNA
Personal Tax filing deadlineNA
Financial Year1st January to 31st December

Employee Benefits in Uzbekistan

Mandatory employee benefits in Uzbekistan consist of pension payments, paid time off (PTO), and employment insurance. Additionally, employees can receive supplementary benefits such as medical insurance and voluntary benefits.

Pension benefits are available to citizens of the Republic of Uzbekistan, foreigners, and stateless individuals permanently residing in the country, as long as they meet the requirements specified in the laws and international treaties.

The Constitution of the Republic of Uzbekistan guarantees its citizens a minimum wage, pension, and social security based on age, illness, disability, or the loss of a breadwinner, among other legally established grounds.

The pension system in Uzbekistan operates on multiple levels: basic, mandatory, and voluntary.

The basic level of the pension system entails pension payments provided by the government from the republican budget. These payments are granted to eligible citizens upon reaching the retirement age, independent of any other pension benefits.

The Off-budget Pension Fund, under the Ministry of Finance of the Republic of Uzbekistan, reported that as of May 1, 2020, there were 3,734,230 registered pensioners and benefit recipients.

A new mechanism determines the calculation of the basic pension:

  • For individuals with a pension system participation of 10 years or less, the payment is equivalent to 54% of the subsistence level (SL).
  • For each additional year of participation beyond 10 years, the basic pension increases by 2%. For example, with 20 years of participation, the basic pension amounts to 74% of the PM. With 30 years, it is 94% of the PM, and for 33 years or more, the basic pension reaches 100% of the PM.

The calculation of the participation period in the pension system considers:

  • Work experience before January 1, 1998.
  • Cumulative experience (actual pension contribution payments) after January 1, 1998.
  • Other socially significant periods, such as caring for a child under 3 years (up to 12 years), supporting a disabled person or an elderly pensioner requiring assistance, individuals aged 80 or older, and the residence period for spouses of military personnel, employees of special agencies, and diplomatic workers.

The second level of the pension system in Uzbekistan is the mandatory pension, which includes contributions from both the solidarity system (republican budget) and the Unified Accumulative Pension Fund (UAPF). This level requires compulsory pension contributions and mandatory professional pension contributions.

With the implementation of a funded pension system, all employees are required to make mandatory pension contributions. Employers have the responsibility to regularly transfer 10% of the employee's monthly income (up to 75 times the minimum wage) to the employee's individual retirement account opened in the UAPF.

According to the law, individuals who have pension savings in the UAPF are entitled to pension payments in the following circumstances:

  1. Upon reaching the retirement age, which is 55 years for women and 60 years for men.
  2. If the accumulated pension savings are sufficient to guarantee a payment equal to or higher than the minimum pension, individuals can enter into a pension annuity contract at the age of 59 for men and 54 for women.
  3. Disabled individuals classified in the first and second disability groups are eligible for pension payments if the disability is established for an indefinite period.
  4. Foreigners and stateless individuals who permanently leave Uzbekistan and provide supporting documents confirming their departure.

The third level of the pension system is voluntary contributions. This involves employees making voluntary pension contributions to the UAPF or a voluntary accumulative pension fund, either for themselves or on behalf of third parties. The terms of the contract determine the rate and period of payment for pension benefits funded by voluntary contributions.

Contributors of voluntary pension contributions can be individuals or legal entities who voluntarily contribute to the pension system using their own funds.