View an example of employment costs calculation in Kazakhstan
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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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