Hiring Employees in Uzbekistan: Locals and Foreigners
How to hire in Uzbekistan: employment contract, registration in the labour system (ELLS), employer payroll taxes, hiring foreigners, quotas and permits.
Last updated 2026-06-16
Ivan Karataev
Managing Partner, BizReg
MBA, ACCA, CPA · ex-KPMG, ex-CFO of NYSE-listed companies · 20+ years in US & Uzbek business
Last updated 2026-06-16 · 11 min read · ✓ Facts verified against primary sources (lex.uz, soliq.uz)
Hiring employees in Uzbekistan requires a written employment contract registered in the ELLS within five working days plus payroll taxes, and for a foreigner a separate set of permits on top. Hiring your first employee is not just «make an offer and pay a salary». Behind the simple phrase «we took someone on» sits a chain of mandatory steps: a written employment contract, its registration in a state system, payroll-tax calculation and, for a foreigner, a separate set of permits. Skip any link and you get fines and blocks. Let us walk through the entire hiring path — for a local employee and for a foreigner — so you get it right the first time.
Verified on 2026-06-16
Employment relations in Uzbekistan are governed by the Labour Code and secondary legislation; payroll taxes by the Tax Code. Rules and forms change periodically. Before acting, check the current versions on lex.uz, my.mehnat.uz and soliq.uz. Verify specific deadlines, fees and quotas in primary sources.
Two hiring scenarios: local employee and foreigner
In legal terms, hiring splits into two different stories. Hiring a citizen or resident of Uzbekistan is relatively simple: an employment contract and its registration. Hiring a foreigner is all of that plus a separate «permit» layer: the company earns the right to engage foreign labour, and each individual gets a confirmation of the right to work. Confusing these two paths is an employer's most expensive mistake.
Below we break down both scenarios step by step, show the payroll burden in numbers and fold it all into a «local vs foreigner» comparison table. If you are only just incorporating, start with our guide on opening an LLC step by step — hiring comes after the company exists.
How do you hire a local employee in Uzbekistan, step by step?
This is the baseline path every employer follows. Foreign hiring is built on top of these same steps.
Lock down the terms and the role
Define the position, working hours, salary and duties. A job description for the role makes sense. Note: salary cannot be below the statutory minimum. Mistake: agreeing «verbally» and delaying paperwork — allowing work without a contract already creates obligations and risk for the company.
Sign a written employment contract
Employment is formalised by a written employment contract. It records the parties, position, start date, schedule, pay, term (open-ended or fixed) and conditions. Note: a civil-law contract is possible for one-off work but does not replace an employment contract or grant labour guarantees. Mistake: using a civil-law contract where the relationship is genuinely employment — it gets reclassified with back charges.
Register the contract in the ELLS
The signed contract must be registered in the Unified National Labour System (ELLS) via my.mehnat.uz — within five working days of signing. This creates the employee's electronic record. Note: data is submitted on hiring, on changes and on termination. Mistake: missing the registration deadline is a breach of the formalisation rules.
Complete the HR documents
Issue a hiring order, create/update the electronic labour book and have the employee acknowledge internal policies in writing. Note: the electronic labour book is kept through the same national labour system. Mistake: keeping HR «in a notebook» — at an inspection there is nothing to prove correct formalisation.
Put the employee on payroll
Add the worker to payroll: PIT, social tax and the INPS contribution apply from the very first payout. Note: the employer acts as a tax agent and withholds PIT itself. Mistake: forgetting to budget the 12% social tax on top of salary — the real cost of an employee is higher than their pay.
Pay taxes and file reports
Each month, remit the withheld PIT and the charged social tax and file payroll-tax reports by the deadlines. Note: deadlines are fixed by the Tax Code. Mistake: late payments lead to penalties and back charges — the most common «quiet» risk for new employers.
No work without a contract and without ELLS
Letting an employee work without a written employment contract and without registering it in the ELLS breaches the rules on formalising employment, and the employer is liable. Sign the contract before work begins and register it on time. See the exact requirements in the Labour Code on lex.uz.
What payroll taxes does an employer pay in Uzbekistan?
The main financial trap of hiring is underestimating the real cost of an employee. The take-home pay and the company's cost for the same person are different numbers. Here is who pays what.
Withheld from the employee's pay
from salaryPIT of 12% on a resident's employment income. Inside that 12%, a small share — 0.1% to INPS — goes to the employee's personal pension account without adding to the burden. These amounts reduce take-home pay.
Paid by the employer on top of salary
on topSocial tax of 12% on the payroll fund (25% for budget organisations). This is a company cost above salary that the employee never sees, but which is part of the cost of hiring.
Let us put it into one calculation. Say a resident employee's salary is UZS 10,000,000 per month.
| Item | Rate | Amount | Who pays |
|---|---|---|---|
| Gross | — | 10,000,000 | calculation base |
| PIT | 12% | 1,200,000 | withheld from employee |
| incl. INPS | 0.1% | 10,000 | to employee's account, out of PIT |
| Net (take-home) | — | 8,800,000 | employee receives |
| Social tax | 12% | 1,200,000 | employer pays on top |
| Cost of hiring | — | 11,200,000 | total company cost |
The takeaway is simple: the employee receives UZS 8,800,000, while the company spends UZS 11,200,000. When planning headcount, budget the upper figure — the real cost of an employee is about 12% above salary due to social tax. A detailed breakdown of rates and non-resident specifics is in our article on PIT and payroll taxes.
Social tax is a plan, not a surprise
The most common mistake of new employers is budgeting the team by salaries. Add 12% social tax to every salary upfront: then the payroll fund will not «grow» unexpectedly after the very first payslip.
Hiring a foreigner: what is added on top of the contract
If you hire a foreign specialist or appoint a foreign director, the baseline steps (contract, ELLS, taxes) still apply — but a permit layer is added. The logic is two-tier: first the company earns the right to engage foreign labour, then each individual foreigner gets a confirmation of the right to work.
Company permit to engage labour
The employer obtains a permit to engage foreign labour. It is the company's right to hire foreigners (Cabinet Decree No.244 of 25.03.2019).
Confirmation for the worker
Each foreigner needs a confirmation of the right to work — an individual document tied to the position and the employer.
Stay and registration
Beyond labour documents, you handle entry, a visa (if required) and registration of the foreigner's stay in the country.
Exemptions and special regimes
Some categories, countries and regimes have simplifications or exemptions. Their list is published on gov.uz — do not rely on retellings.
IT Park preferences
Residents of IT Park have preferences when engaging foreign specialists. Details on it-park.uz and gov.uz.
Taxes for a foreigner
The employer charges 12% social tax regardless of the worker's tax status, while INPS is generally not withheld from foreigners' pay.
On quotas, the key point: engaging foreign labour is regulated and may depend on set limits and categories. The specific parameters — who falls under a quota, which exemptions apply and what fees are set — change and are published in regulations. We deliberately do not quote current figures: a stale number is worse than none. Check lex.uz and gov.uz.
A foreign director is also «working»
Running a company is work, so a foreign director generally also needs permit documents. Incorporating the company does not by itself legalise a foreigner's work. We covered this in detail in our piece on the work permit for a foreigner.
Local vs foreign employee: what differs
To see the difference at a glance, here are both scenarios in one table. The baseline steps match — what diverges are the permit documents and some tax details.
| Formalisation stage | Local employee | Foreign employee |
|---|---|---|
| Employment contract | Required, written | Required, written |
| ELLS registration | Yes, within 5 working days | Yes, within 5 working days |
| Company permit to engage labour | Not required | Required (Decree No.244), with exemptions |
| Confirmation for the worker | Not required | Required for each foreigner |
| Visa / stay registration | Not required | May be required |
| PIT 12% | Withheld | Withheld (non-resident — at source) |
| Social tax 12% | Charged | Charged regardless of status |
| INPS 0.1% | Withheld out of PIT | Generally not withheld |
| Quotas / limits | Not applicable | Limits possible |
The practical takeaway: a local can be onboarded within a few days — the work sits in the contract and the ELLS. For a foreigner, budget more time for permit procedures and resolve them before work actually begins.
Common hiring mistakes
How to do it right
- Sign a written employment contract before work starts
- Register the contract in the ELLS within 5 working days
- Budget 12% social tax on top of every salary
- Withhold and remit PIT as a tax agent on time
- For a foreigner — permits first, actual work later
- Verify exemptions and preferences (incl. IT Park) in primary sources
What to avoid
- Letting people work «verbally», without a contract
- Substituting a civil-law contract for an employment one to save money
- Missing the ELLS registration deadline
- Budgeting the team by salaries without social tax
- Hiring a foreigner without a permit and confirmation
- Taking deadlines, fees and quotas from stale articles instead of lex.uz and gov.uz
The main risks
Working without a contract and without ELLS registration, substituting a civil-law contract for employment, late payroll taxes, hiring a foreigner without permit documents — all of these lead to employer liability, fines and back charges. Verify the procedure on lex.uz, my.mehnat.uz and soliq.uz — or leave the paperwork to us.
How we help with hiring
We support employers end to end: we draft employment contracts and HR documents, register contracts in the ELLS on time, put staff on payroll and run PIT, social tax and reporting. For foreign staff, we separately obtain the permit to engage foreign labour and confirmations for individual specialists, and help with stay matters. We track current requirements on official portals — so you hire fast and without fines. Learn more on our about page or reach us via contacts.
Key points on hiring in Uzbekistan
- Hiring is formalised by a written employment contract — no work without it.
- The contract is registered in the ELLS via my.mehnat.uz within 5 working days.
- PIT of 12% is withheld (incl. 0.1% to INPS); the employer pays 12% social tax on top.
- The real cost of an employee is about 12% above salary due to social tax.
- A foreigner needs the company's engagement permit and a worker confirmation.
- INPS is generally not withheld from foreigners' pay; social tax always applies.
Related articles
- Work permit in Uzbekistan for a foreigner
- Foreign Director of a Company in Uzbekistan
- How to Register an LLC in Uzbekistan: Step by Step
- Doing Business in Uzbekistan: a 2026 Starter Guide for Foreigners
Frequently asked questions
Do I have to register an employment contract in Uzbekistan?+
Yes. The contract is registered in the Unified National Labour System (ELLS) via my.mehnat.uz within five working days of signing (Cabinet Decree No.971 of 05.12.2019; the Labour Code). Verified on 2026-06-16; check lex.uz.
What payroll taxes does an employer pay?+
On top of salary — social tax of 12% on the payroll fund (25% for budget organisations). From the employee's pay, PIT of 12% is withheld, including 0.1% to the employee's INPS account. Source: Tax Code, soliq.uz.
Do I need a permit to hire a foreigner?+
As a rule, yes. The company obtains a permit to engage foreign labour, and each foreigner needs a confirmation of the right to work (Cabinet Decree No.244 of 25.03.2019). Some categories are exempt — check gov.uz and lex.uz.
What is the deadline to register an employment contract?+
Within five working days of signing — via the ELLS at my.mehnat.uz. Data is submitted on hiring, changes and termination. Source: Cabinet Decree No.971 of 05.12.2019, lex.uz.
How does hiring a local differ from hiring a foreigner?+
A local is hired with an employment contract registered in the ELLS. A foreigner additionally needs the company's engagement permit and a confirmation of the right to work, and often a visa/stay registration. INPS is generally not withheld from foreigners' pay.
Can I hire someone without an employment contract?+
No. Employment is formalised by a written contract; work without it and without ELLS registration exposes the employer to liability. A civil-law contract is possible for one-off tasks but does not replace an employment contract.
Is INPS withheld from foreigners' pay?+
Generally no. At the same time, the employer charges 12% social tax on a foreigner's salary regardless of their tax status.
We will handle hiring and onboarding — from the employment contract and ELLS to payroll taxes and foreigner permits
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Who we are and why you can trust us
Ivan Karataev
Managing Partner, BizReg
MBA, ACCA, CPA · ex-KPMG, ex-CFO of NYSE-listed companies · 20+ years in US & Uzbek business
BizReg (Ustores LLC, Tashkent) helps foreigners set up companies in Uzbekistan turnkey — registration, legal address, bank account and accounting. 1000+ registrations over 15 years.
Consultation in Russian and English · +998 90 347 86 92
We will hire and onboard your staff by the book
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