Hire employees in Uzbekistan
What a foreign company needs to know before employing people in Uzbekistan: whether you need a local entity, what an employee costs under the 12% social tax and the IT Park regime, how twice-monthly pay and monthly reporting work, how the 2023 Labour Code handles notice and severance, and how the outstaffing rules affect an employer of record. Written for CHROs, CFOs, General Counsel and founders.
Employer of record in Uzbekistan: quick answers
The questions leadership teams ask first.
Do I need a local entity in Uzbekistan to hire?
No. There are three routes:
- Employer of Record. Dryft Global employs the person in Uzbekistan through a compliant local employer, registers the contract in the national labour system, pays salary at least twice a month and handles income tax and social tax. You direct the work.
- Direct local entity. You register a limited liability company through the one-stop shop, in up to 2 business days with complete documents, then set up tax registration and payroll: plan for several weeks before the first payroll.
- Independent contractor. Lawful only for genuinely independent work under a civil contract. Where the work looks like employment, it should be structured as employment.
When should I use an EOR instead of registering locally?
Use an EOR for your first hires in Uzbekistan, when you want to start quickly and do not want to build contract registration, twice-monthly payroll and monthly tax reporting yourself. Your own entity earns its keep for a sustained team, Uzbek customers, or a company that will join the IT Park technology zone.
What does an employee actually cost beyond salary?
The employer pays a 12% social tax on gross pay with no cap. Companies resident in the IT Park pay 0% until 1 January 2028. The employee pays 12% income tax, from which 0.1% goes to a personal pension account, and no other contributions, so the employee keeps 88% of gross. Employees of IT Park residents may pay 7.5% income tax instead.
How difficult is termination in Uzbekistan?
Dismissal must be on a ground in the Labour Code, such as liquidation, staff reduction, insufficient qualification or serious misconduct. Liquidation and staff reduction need 2 months' notice and severance of 50% to 200% of average monthly earnings depending on length of service. Final pay is due on the termination day. Mutual agreement is the common clean exit.
Can Dryft Global legally employ my team in Uzbekistan?
Yes. Dryft Global employs your team through a compliant local employer, structured with Uzbekistan's outstaffing rules in mind. We issue written contracts, register them in the national labour system, pay salary at least twice a month in som, withhold income tax, pay the social tax, and manage leave and termination.
Hiring routes compared
Speed, set-up burden and liability differ by route.
| Factor | Direct local entity | Dryft Global EOR | Independent contractor |
|---|---|---|---|
| Time to first payroll | Several weeks | Days to 2 weeks | Days |
| Local entity required | Yes, LLC | No | No |
| Contract registration and taxes | Your registrations | Handled by Dryft Global | Payer withholds income tax |
| Outstaffing rules | Not applicable | Structured compliantly by Dryft | Not applicable |
| Statutory liability | Direct corporate exposure | Assumed by Dryft Global | High if the work looks like employment |
| Best fit | Sustained team, IT Park residency | First hires, engineering teams | Short independent projects |
What an employee costs in Uzbekistan
Uzbekistan has one employer payroll charge, the social tax, with no salary cap. The model below is a Tashkent software engineer on UZS 15,000,000 gross a month in 2026.
| Component | Standard employer | IT Park resident |
|---|---|---|
| Social tax | 12% (UZS 1,800,000) | 0% until 1 January 2028 |
| Other employer contributions | None | None |
| Total employer cost | UZS 16,800,000 (112%) | UZS 15,000,000 (100%) |
| Employee income tax | 12% (0.1% of it to pension) | 7.5% where the reduced rate applies |
| Net pay | UZS 13,200,000 | UZS 13,875,000 |
For an employee on UZS 15,000,000 a month at a standard employer, budget roughly UZS 201.6 million (about USD 16,800) a year before the EOR fee and any optional benefits, at the Central Bank of Uzbekistan rate of 7 November 2026. Voluntary medical insurance and bonuses are extra. Ask us for a cost model with current rates applied.
Payroll and tax
Salary is paid in som at least twice a month, generally no more than 16 days apart, and final pay is due on the termination day. The employer registers each contract in the Unified National Labour System within 5 business days, withholds income tax, pays the social tax, and files a combined monthly calculation by the 15th of the following month. The annual return is due by 15 February. Since 2026 the tax authority pre-fills income tax and social tax returns from its own data.
Income tax
Income tax is a flat 12% for residents and on Uzbek-source employment income of non-residents, calculated monthly and cumulatively from January. 0.1% of taxable wages goes to the employee's personal pension account out of the tax already withheld, so it is not an extra deduction. Employees of IT Park residents may pay 7.5%; confirm eligibility and the period for each hire.
Minimum wage 2026
UZS 1,360,000 a month from 1 September 2026, up from UZS 1,271,000, set by presidential decree. The base calculation value used for fees and fines is UZS 440,000.
Leave and mandatory benefits
- Annual leave. At least 21 calendar days, plus extra days for harmful conditions and long service. Unused leave is paid out on termination, and all leave is registered in the national labour system.
- Public holidays. Around 10 holidays in 2026, including Navruz, Ramazon Hayit, Kurban Hayit and Independence Day, with extra days off set by decree.
- Sick pay. From July 2026 the employer pays the first days, then the State Social Insurance Fund pays 60% or 80% of average earnings by insurance record; confirm the split for each case.
- Maternity. 126 calendar days (140 for complicated or multiple births), paid by the State Social Insurance Fund at 75% to 100% of average earnings.
- Paternity. No dedicated paid paternity leave; fathers may take annual leave during the maternity leave and may use child care leave.
- Working time. Up to 40 hours a week; overtime is paid at least 1.5 times for the first 2 hours and 2 times after, and holiday work at least 2 times.
- Common extras. Voluntary medical insurance, bonuses, flexible hours and remote work.
Termination and notice periods
Probation can last up to 3 months, or 6 months for heads of organisations, deputies and chief accountants. After that, the rules are as follows.
| Item | Rule |
|---|---|
| Liquidation or staff reduction notice | 2 months, which may be replaced by pay |
| Insufficient qualification notice | 2 weeks |
| Severance | 50% (under 3 years) to 200% (over 15 years) of average monthly earnings |
| Employee resignation | 14 calendar days' written notice |
| Final settlement | On the termination day |
- Justified grounds only. The employer must rely on a ground in the Labour Code.
- Trade unions. Consent is needed only where a collective agreement requires it, and for elected employee representatives.
- Protected employees. No dismissal during sick or annual leave except on liquidation, and protection for pregnant women and parents of children under 3.
- Unlawful dismissal. Reinstatement, back pay and moral damages of at least 1 average monthly salary.
Can I use independent contractors?
Only for genuinely independent work. Individuals can be engaged under civil-law contracts, with the payer withholding 12% income tax. Where the work looks like employment, with a set schedule, a job position and your managers directing it, it should be structured as employment. Placing workers with a client is regulated: since October 2024 outstaffing by an Uzbek employer is allowed for at most 9 months a year per worker at a client, and is banned for high-hazard sites and insolvent clients. Uzbekistan has no separate EOR category, so the employing structure matters and should be confirmed for each hire. For anyone who works like an employee, an EOR set up through a compliant local employer is the safe route.
The legal framework in brief
Uzbekistan is a civil law system where the Labour Code in force since 30 April 2023 sets minimum terms. The instruments you will hear most:
- Labour Code (Law No. ZRU-798). Contracts, probation, working time, leave, twice-monthly pay, notice and severance.
- Tax Code. The 12% flat income tax, the 12% social tax and monthly reporting.
- Law on State Social Insurance. Sick pay and maternity benefits through the State Social Insurance Fund from 2026.
- Outstaffing regulation (2024). Rules and a 9-month annual limit for placing workers with clients.
- Work authorisation. Employer confirmation of the right to work, longer terms for qualified specialists, and the IT Visa for the IT Park.
- Data protection. Law No. ZRU-547 of 2019, with a requirement to store Uzbek citizens' personal data in Uzbekistan.
- Corporate tax. 15% standard, VAT 12%, a services PE after 183 days, and the 1973 US and USSR treaty applied to Uzbekistan by the IRS.
- IT Park. Exemption from corporate tax, VAT and social tax until 2028 for qualifying residents.
Where the talent is
Uzbekistan has a population of 39.5 million and unemployment of 4.5% in the first half of 2026. The average wage was UZS 7.27 million a month for January to September 2026, with Tashkent city at UZS 12.30 million and the information and communications sector at UZS 17.01 million. Uzbek is the state language and Russian is widely used in business. The country runs on UTC+5 with no daylight saving.
| Region | Talent and industry concentration |
|---|---|
| Tashkent | Capital, main business and technology centre, IT Park headquarters |
| Samarkand | Regional commercial centre and IT Park branch |
| Bukhara | Regional centre and IT Park branch |
Uzbekistan Implementation Kit
This page tells you the rules. The kit tells you what to do, in what order, and what goes wrong when you skip a step.
- Step-by-step checklist, from route selection to first payroll
- Contract, probation and labour system registration
- Gross to net and employer cost set-up, standard and IT Park
- Twice-monthly pay calendar and monthly reporting
- Work authorisation and IT Visa steps
- Outstaffing and contractor risk checklist
- Every official Uzbek authority with direct links
Hiring in nearby markets
Employer of record and hiring guides for other countries in Asia Pacific: Vietnam · Australia · Bangladesh · Cambodia · China · Hong Kong · India · Indonesia. See all global hiring guides or compare routes in EOR vs PEO vs entity.
This guide is general information, not legal, tax or immigration advice. Uzbekistan changes the minimum wage, tax incentives and labour rules by decree during the year. Confirm current figures and the employment structure with a qualified adviser or with Dryft. Last reviewed November 2026.
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