View an example of employment costs calculation in Kazakhstan
In modern world it is no longer enough to be in the right place at the right time. Gathering and giving timely information to your customers can be instrumental in either winning or losing project. Providing valuable data on employment peculiarities in particular countries can add a unique competitive edge to the PEO company. However, the task can be pretty hard to do. Given this fact, most PEO providers spend long hours on the Internet fishing for the desired data.
BUT there is a far better option.
For the craftiest PEO providers we have prepared a FREE Country Brief where we accumulated all useful information on employment costs in 33 countries in Eastern and South-Eastern Europe, ex-Soviet Union plus Central Asia. The Brief will save you hours of work necessary to calculate employment costs in each particular country.
By downloading the Country Brief, you get armored with information that helps you serve your clients in a more efficient way with now effort needed.
Imagine you have a request for hiring a remote employee in Kazakhstan. His gross salary is USD 1000. In this case, both the employer and the employee are subject to social and income taxes given below:
- Social tax – 11% of gross salary, USD 110;
- A compulsory insurance – approximately USD 100 per employee. It is paid once a year.
- The payment to the pension fund – 10%
- Personal income tax withheld from gross salary – 10%, USD 100
The payment to the pension fund – 10%. The cap to the amount of pension fund charge – 160 230 KZT or USD 523.45. The remaining amount over this sum is not subject to pension fund charge.
So, minimum payment amounts to 10% of gross salary while maximum is USD 523.45. In our case – 10%, USD 100 will be withheld. If gross salary were USD 20 000, only USD 523.45 would be paid.
So, your client’s employment costs will amount to 1000+110 = USD 1110 monthly plus 100 paid once a year.
So, your remote employee’s net salary will amount to 1000-100-100 = USD 800
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