How much does it cost to use an Employer of Record (EOR) in Uzbekistan?
- Gegidze • გეგიძე | Marketing
- Jul 16
- 12 min read
Updated: Jul 21
Table of contents:
Introduction: You’re not just paying for compliance, you’re buying clarity
Only 1 in 5 companies expanding internationally can correctly estimate their true hiring costs.
And most don’t realize they’ve messed it up until the fines arrive.
You’re thinking about hiring in Uzbekistan. Maybe it’s your first international hire. Maybe you’ve already dabbled in remote teams and now you’re eyeing Central Asia for its rising talent pool, low salary costs, and strategic location.
Either way, you're wondering what the actual price tag is when using an Employer of Record (EOR).
Spoiler: it’s not just about salaries and taxes.
When you partner with an EOR, you’re not just ticking a compliance checkbox. You’re buying speed. Legal coverage. Simplicity. And yes, peace of mind that you won’t get hit with a tax penalty three months in because you misread a clause in Uzbekistan’s labor code.
The question isn’t, “How much does an EOR cost?”
The real question is, “What am I getting in return?”
And if you’ve ever tried to open a local entity just to test one market, you already know the answer. It's messy, slow, and full of surprises (not the good kind). This guide is for founders, HR leads, and decision-makers who want to scale quickly without losing sleep over government forms, payroll cycles, and compliance chaos.
Let’s unpack what you really get when you work with an EOR in Uzbekistan, and whether the price is worth the sanity.
What’s included in the EOR fee in Uzbekistan?
If you’ve been in back-to-back meetings all week and still haven’t figured out what “EOR” actually includes, don’t worry—we've got you.
Let’s break it down.
When you work with an Employer of Record in Uzbekistan, you’re not just outsourcing paperwork. You’re buying a full-stack hiring solution that covers everything your future team member needs to start working, legally, locally, and fast.
Here’s what’s inside the fee:
Employment verification & compliant contracts
Before your new hire even opens their laptop, your EOR is handling:
Background checks
Proof of eligibility to work in Uzbekistan
Bilingual contracts that follow Uzbek labor law (and protect you, not just the employee)
Onboarding & tax registration
Skip the government portals and red tape. EORs handle:
Local tax ID registration
Social fund enrollment
Pension fund declarations
Benefits documentation
All bundled and submitted with zero confusion on your end.
Payroll processing & monthly filings
Each month, your EOR:
Calculates gross-to-net salaries based on Uzbekistan’s tax code
Withholds and remits personal income tax and social contributions
Files all required government reports on time
No late filings. No translation errors. No mystery deductions.
Hiring a foreign national in Uzbekistan? Your EOR can:
Apply for work permits
Sponsor visas (including dependent visas)
Track renewal deadlines and handle extensions
So your hire doesn’t end up on a tourist visa, working illegally.
Legal & HR compliance support
Need to terminate an employee? Modify a contract? Figure out sick leave rules during probation? Your EOR will guide you through:
Local labor code interpretations
Exit procedures that avoid court drama
Risk mitigation on misclassification
Localized benefits administration
If you offer perks (health insurance, gym, training), your EOR:
Sources and manages local vendors
Ensures contributions are structured legally
Builds compliant addendums into employment contracts
Currency exchange & salary disbursement
You pay in EUR or USD. Your talent gets paid in Uzbekistani som, directly to their local bank, on time and with no sketchy fees.
EOR pricing structure: Flat rate vs % of salary
Let’s get this out of the way first: yes, I’m a numbers person.
No, I won’t bore you with spreadsheets.
But if you’re considering using an Employer of Record (EOR) in Uzbekistan and still don’t know whether flat fee or percentage pricing makes more financial sense, you’re about to.
What are your options?
Flat rate pricing
This is what Team Up offers. A fixed monthly fee (in our case: €299 per employee), no matter if your hire earns €800 or €8,000.
What’s covered:
Employment setup
Payroll and tax filings
Legal compliance
Benefits admin
Work permits (if needed)
Why it works:
Predictability: You know exactly what you’re paying each month. That’s a blessing when you’re managing budgets across borders.
Fairness: The cost of EOR services doesn’t magically increase just because your senior developer negotiated a higher salary. Why should it?
Transparency: No fuzzy calculations or fees tied to every bonus, raise, or stock payout.
% of salary pricing
Some EOR providers charge between 10%–15% of your employee’s gross salary. Sounds harmless, until it isn’t.
Let’s do some math:
Hire earns €3,500/month.
EOR fee at 12% = €420/month.
That’s €121 more per employee than the flat rate Team Up model.
Now multiply that by 5 hires.
Now run it for 12 months.
You’re welcome.
Problems with % pricing:
Punishes growth: Your EOR gets richer every time you give someone a raise.
Inconsistent budgeting: The more competitive you are with salaries, the more volatile your EOR costs become.
Harder forecasting: Good luck explaining your rising EOR bill to your CFO when your headcount hasn’t changed.
Salary + taxes + EOR fee = Total monthly cost in Uzbekistan
Look, as your friendly finance manager based here in Tashkent, I get it: no one loves payroll math (except maybe accountants—and even that's questionable). But if you're planning to hire in Uzbekistan, you need to know what it really costs. And as your numbers guy, clarity is what I'm paid for.
So let’s talk openly.
Here’s exactly how your monthly costs add up when you hire through an Employer of Record (EOR) like Team Up:
Salary (your starting point)
Say you're bringing on a mid-level software developer in Uzbekistan—someone solid, reliable, and ready to hit the ground running. A typical monthly gross salary here lands around €1,500.
That’s your base. But don’t celebrate yet—there’s more math.
Employer-side taxes (the hidden extras)
In Uzbekistan, payroll taxes aren't just optional—they’re mandatory extras, non-negotiable like paying for tea when you visit your aunt’s house. Here's your quick tax breakdown:
Social Tax (Employer-side): about 12% of gross salary. For our example, that's around €180/month.
Pension Admin Fee: negligible at about 0.1%—but let’s keep it accurate. Around €1.50/month.
That gives you around €181.50/month in employer-side taxes.
Flat-rate EOR fee (predictability wins)
Team Up charges a flat monthly EOR fee of €299 per employee. This covers all the headaches you'd otherwise have to manage alone:
Payroll and local tax filings (handled)
Fully compliant employment contracts (done)
Local compliance—no guesswork required (managed)
Benefits admin, onboarding, and even work permits (if needed)
No "gotcha" fees. No upselling every month.
Here’s your clear total monthly cost:
Cost component | Amount (€) |
Gross Salary | 1,500 |
Employer-side taxes (~12.1%) | 181.50 |
EOR fee (flat) | 299 |
Total monthly cost | €1,980.50 |
This is your real, no-nonsense monthly total—no guesswork or hidden extras.
Hiring in Uzbekistan isn’t complicated once you know the math.
Optional add-ons: Benefits, equipment & workspace
Let’s say you’ve nailed the basics—salary, taxes, EOR fee. Your employee in Uzbekistan is technically hired. Great.
But if you stop there, you’re not really investing in your team—you’re just paying invoices.
Optional add-ons aren’t just fluff. In competitive hiring markets like Tashkent, they’re often the deciding factor between “I’ll think about it” and “When can I start?”
Here’s what top companies are bundling into their EOR setup in Uzbekistan—and why it pays off.
Health insurance
Local health plans start around €49/month per employee and give your team real peace of mind. In Uzbekistan, private clinics are preferred by most professionals—public options exist, but they’re not exactly a selling point.
A solid plan makes your offer stand out, especially to experienced developers, designers, and project managers who are weighing multiple remote roles.
Gym memberships & wellness stipends
Whether it’s yoga in Tashkent’s Yunusobod District or a gym closer to home, wellness perks are popular. Gym memberships also start at €49/month, and many companies use this benefit to promote retention and boost performance.
Let’s face it, your remote team needs energy. Helping them move their body helps them move their business forward.
Language courses & online training
Want your new hire to be fluent in German for EU client calls? Or sharpened up in Agile workflows? Language classes and professional development stipends are flexible add-ons that scale with your business goals.
We offer a curated list of local vendors, plus the option to use your own. It’s plug-and-play.
Workspace options for remote employees hired through an Employer of Record in Uzbekistan
While many teams work fully remotely, some employees prefer hybrid. That’s why we offer access to coworking spaces across Tashkent—central locations, fast internet, zero landlord headaches.
Flex desks: ~€150/month
Dedicated desks: ~€250/month
Private offices: Custom pricing available for scaling teams
Remote doesn’t have to mean alone.
Equipment policies for employees hired via an Employer of Record in Uzbekistan
Need to provide a MacBook Pro or a local brand Windows laptop? You’ve got options.
Lease from €69/month — best for short-term contractors or flexible projects
Buy with local sourcing and support — get local warranties and skip the customs mess
Already have a preferred device setup? We’ll help manage delivery, insurance, and setup.
Is it cheaper than setting up a company in Uzbekistan?
Setting up a legal entity in Uzbekistan sounds impressive on paper, but let’s not romanticize it, okay?
You’ve got a shiny local address. A stamp. Maybe even a nameplate on the door.
But behind the scenes? It’s a slow-motion money leak.
Here’s what the DIY setup looks like in Uzbekistan:
Legal & registration fees: Expect to spend €2,000–€5,000 upfront just to get your business registered. That’s before you’ve even hired anyone.
Local director or representative: Mandatory. Can’t just ghost this part. And that often means local legal retainers or partnerships that cost time and cash.
Office lease requirements: Even if your entire team works remotely, you still need a registered address. In many cases, you’ll need to sign a commercial lease with a 6–12 month commitment.
Monthly accounting & compliance: Bookkeeping, tax filing, HR recordkeeping—these aren’t optional. Expect €300–€1,000+ per month, depending on how many people you hire.
Annual audits & tax reporting: Uzbekistan requires annual filings, sometimes even quarterly, depending on your business model. It’s not just formality—screw it up and you’re liable for penalties.
Compare that to a flat EOR model
Now let’s look at the alternative. With Team Up’s Employer of Record (EOR) service in Uzbekistan:
You hire immediately—no months-long registration required.
You pay one monthly fee per employee (flat, predictable).
You get full compliance with labor laws, social fund payments, and local tax rules.
You scale up or down without having to shut down an entity or renegotiate leases.
The total cost of hiring through an EOR includes salary, taxes, and our flat monthly fee. That’s it. No surprises. No hidden paperwork. No, watching your expansion budget burn for six months before onboarding your first team member.
And don’t forget the human side
Hiring local talent in Uzbekistan through an EOR means you’re seen as legit by top-tier professionals, without them having to worry if your “foreign startup” will figure out the tax laws in time for payroll.
You show up professionally. You move fast. You stay focused on growth.
So yes, EOR is cheaper than setting up a company in Uzbekistan. But more importantly?
It’s smarter.
Common myths about EOR pricing (and why they’re wrong)
Ah, yes, EOR pricing, the corporate version of the telephone game. One person hears a number from a friend of a friend’s CFO, and suddenly everyone in your Slack thread is convinced that using an Employer of Record in Uzbekistan costs “double what it should.”
Let’s clear the air. Here are the most common myths we hear (and why they’re flat-out wrong).
Myth 1: “EORs are just for big companies with huge budgets.”
Nope. In fact, most of our clients are startups, scaleups, or lean teams that want to expand without hiring a full legal team.
If you’re not ready to spend €5K+ on setting up an entity, and you’d rather not figure out social security contributions in Uzbek tax code, then EOR isn’t a luxury. It’s a shortcut.
Reality: EORs are built for businesses that want speed, flexibility, and low upfront costs, not just big enterprises.
Myth 2: “Percentage-based EOR pricing is always cheaper.”
Sounds logical. Until you’re hiring mid- to senior-level talent.
A 10–15% cut of salary might look fine when you’re paying €1,000/month… less cute when that salary jumps to €3,000.
Reality: Flat-rate pricing (like ours in Uzbekistan) gives you cost predictability. You know what you're paying every month, no matter how senior your hire is.
Myth 3: “You can get the same service cheaper with a contractor.”
Sure, you can pay a contractor directly via Payoneer or crypto. You can also ride a scooter down a mountain in flip-flops. Doesn’t make it a good idea.
Reality: Direct contractor hiring skips tax compliance, social contributions, local benefits, and protection for both parties. That may seem cheap until you’re hit with fines, lawsuits, or a talent exodus because your “benefits package” was vibes and a Slack channel.
Myth 4: “An EOR won’t scale with us.”
This one’s extra strange. Because the whole point of an EOR is to help you scale.
Whether you're hiring one engineer in Tashkent or building a 15-person product team across Georgia, Armenia, and Uzbekistan, good EORs (like us) grow with you.
Reality: Scaling without borders is exactly what EORs are built for.
What could go wrong if you skip compliance in Uzbekistan?
Let’s play a quick game of “what’s the worst that could happen?” Only in this round, it’s not hypothetical, and if you’re skipping labor compliance in Uzbekistan, the answer is: a lot.
This isn’t the kind of country where you can slap together a vague contractor agreement and hope no one looks too closely. Uzbekistan has made massive strides in tightening its employment laws, improving labor protections, and formalizing tax enforcement, especially after joining various global economic partnerships.
If your plan is to wing it, you might want to keep a lawyer on speed dial. Here’s why.
Misclassifying contractors = major tax liabilities
Hiring “freelancers” to avoid payroll taxes? In Uzbekistan, it won’t take long for authorities to catch on. And when they do, you could be liable for backdated payroll taxes, social contributions, and fines.
Companies have already been penalized for treating full-time workers like contractors. And with the government pushing to increase formal employment, the focus is only getting sharper.
Risk: 15–25% of total compensation in retroactive taxes, plus legal fees.
No local employment contract = no legal protection
Uzbekistan’s Labor Code isn’t a “nice-to-have”, it’s enforced. If you don’t issue a compliant employment contract (in Uzbek or Russian, registered properly), your company could be accused of illegal employment practices.
Disputes over wages, termination, or benefits? If there’s no contract on file, the employee’s word might win. You’ll be stuck navigating Uzbek labor courts, which, spoiler, aren’t going to favor a foreign entity with no local presence.
Risk: Reputational damage + possible court orders for compensation.
Delayed or incorrect salary payments = labor inspections
Foreign companies often mess this up without realizing it. Uzbekistan has a minimum wage that changes annually, and salaries must be paid in Uzbek soum, through licensed channels.
Miss a deadline? Underpay? You’ve just triggered a red flag for the Ministry of Employment.
Risk: Mandatory inspections and public reporting that could scare off local talent.
No contribution to social funds = blocked future operations
Social contributions (pension, medical insurance, etc.) are mandatory in Uzbekistan—even for foreign employers hiring remote staff. You don’t contribute? Your worker gets no coverage. You get flagged.
Worst-case? Your company could be blacklisted from public tenders, barred from opening a local branch, or subject to de-registration proceedings.
Risk: Regulatory blacklisting or denial of local entity registration.
You might not even be able to legally pay your team
Uzbekistan has strict currency controls. Sending money from abroad without proper payroll registration and documentation could violate the Central Bank’s currency regulations, especially if your employee doesn’t have dual residency.
This isn’t just a paperwork issue. It can prevent payments from going through altogether.
Risk: Blocked payments, frozen funds, or flagged international transfers.
You don’t need to learn all this. But your EOR does.
Trying to hire in Uzbekistan without support is like trying to read a Cyrillic tax bulletin with Google Translate and vibes.
With Team Up as your EOR provider in Uzbekistan, you don’t just stay compliant—you avoid every single headache above.
Local contracts
Tax and social contributions
Payroll in UZS
Labor law protection
Visa and work permit guidance
If your current contractor model is built on guesswork, this is your wake-up call.
TL;DR: Why EOR cost in Uzbekistan is a strategic investment
If you’ve made it this far, congrats, you’re either seriously considering hiring in Uzbekistan, or you just really enjoy reading about labor compliance (no judgment). Either way, here’s the short version:
You’re not just paying for someone to run payroll. You’re paying for:
Legal employment without the entity headaches
Accurate payroll and tax compliance across a shifting regulatory landscape
Onboarding, benefits, workspace, and device support — all handled locally
A seamless hiring experience in a country known for bureaucracy and currency controls
Let’s be real: hiring in Uzbekistan isn’t just about finding good engineers or finance managers. It’s about avoiding fines, making your team feel secure, and being able to scale without flying in lawyers every quarter.
EOR in Uzbekistan means you can grow smart without growing your overhead.
Team Up’s flat-rate EOR pricing gives you transparency, flexibility, and full control. You know what you’re paying. You know what you’re getting. And most importantly, you’re not left guessing when the government updates a labor rule mid-quarter.
Want to hire in Uzbekistan without hiring a full legal team?
Let’s make it simple. Book a call →