10 strategic benefits of using Employer of Record (EOR) services in Uzbekistan: 2026 guide
- Natia Gabarashvili
- 2 minutes ago
- 12 min read
Table of contents:
Introduction
Uzbekistan is no longer the “emerging market to watch.” It’s one company that is already hiring in.
With strong government reforms, simplified tax systems, and an ambitious digital economy roadmap, Uzbekistan has become a quiet favorite for global expansion. Its workforce is young, educated, and affordable, and its laws have finally caught up with international business standards.
For companies looking to enter Central Asia without the headache of opening a subsidiary, employer of record services in Uzbekistan are the easiest way to hire legally and operate confidently.
Here’s how it works: Team Up, through its local Uzbek entity, becomes the legal employer of your staff. We handle payroll, contracts, benefits, and taxes, all in full compliance with Uzbekistan’s Labor Code, while you manage your team’s projects, goals, and performance.
This 2026 guide breaks down the 10 biggest advantages of using an Employer of Record (EOR) in Uzbekistan. It’s for decision-makers who want to scale quickly, stay compliant, and hire talent in one of Central Asia’s most promising economies.
What does an Employer of Record (EOR) do in Uzbekistan?
Let’s make this simple. An Employer of Record (EOR) is your local legal employer in Uzbekistan.
Under the Labor Code of the Republic of Uzbekistan (1996, updated 2022), every employee must have a written, registered employment agreement. Taxes, pensions, and social contributions are filed monthly to the State Tax Committee (STC) and Off-Budget Pension Fund (OFPF).
Team Up’s EOR model takes care of all of this for you.
We employ your team under our Uzbek entity, drafting bilingual contracts (Uzbek + English), running payroll in Uzbek som (UZS), and filing taxes directly with government systems. You maintain full operational control, but you never have to register a company or navigate the bureaucracy.
Here’s what that covers in practice:
Bilingual, compliant employment contracts. Each one reflects Articles 72–80 of the Labor Code — covering job terms, pay, and benefits, plus IP assignment and confidentiality clauses.
Payroll and tax filings. Uzbekistan has a flat 12% income tax and 25% social tax (employer contribution). Team Up handles calculations, filings, and payments via the STC’s e-reporting portal.
Pension and insurance reporting. Contributions go to the Off-Budget Pension Fund (OFPF) and Social Insurance Fund (SIF) — we register and report every month.
Paid leave, holidays, and benefits. The law requires 15 paid vacation days, maternity leave (126 days), and official holidays — we manage it all, automatically.
Immigration and residence support. For foreign hires, Team Up coordinates work permits with the Ministry of Labor and Employment Relations (MoLER).
That’s the operational reality of compliance in Uzbekistan, handled by a local partner who knows the system.
The 10 Strategic Benefits of Using an EOR in Uzbekistan
Hiring through an Employer of Record (EOR) provider in Uzbekistan gives global companies the speed and compliance they need to expand confidently. You can onboard employees in just a few days without waiting months to open a local entity or navigate Uzbek bureaucracy.
The EOR handles payroll, tax filings, benefits, and employment contracts in full compliance with the Labor Code of Uzbekistan, ensuring zero legal exposure for your company.
It’s also cost-efficient, with predictable monthly pricing and no setup fees. Most importantly, working with a partner like Team Up gives you access to Uzbekistan’s growing pool of skilled, bilingual professionals while keeping your operations legally sound and HR stress-free.
1. Hire in days with Employer of Record (EOR) services in the Uzbekistan
Opening a legal entity in Uzbekistan isn’t hard; it’s slow.
Even with reforms, the process takes 6–10 weeks, including notarized translations, tax registration, and pension fund enrollment. Add another few weeks for banking and employment permissions.
Team Up’s employer of record services in Uzbekistan compress that timeline into five business days.
We onboard your employees under our licensed Uzbek entity, handle their payroll setup, register them with the tax and pension systems, and issue bilingual contracts, all before your competitors even get their Taxpayer ID (TIN).
That means you can test the market, run pilot projects, or start operations without waiting for bureaucracy to catch up.
Perfect for startups, SaaS companies, and global firms testing new delivery hubs in Tashkent.
2. Ensure Full Compliance with Labor Laws in Uzbekistan
Uzbekistan has a clear and enforceable labor framework, but it’s not optional.
According to Articles 72–125 of the Labor Code, every employee must have a written contract, official registration, and coverage under state social funds. Failure to comply can lead to penalties of up to 200 BCI (≈ €900) per worker under the Administrative Responsibility Code.
Team Up ensures your compliance from day one.
Every contract we issue is bilingual and registered with local authorities.
Payroll and income tax are filed monthly with the State Tax Committee (STC).
Pension, health, and social contributions are paid directly to the state funds.
We track all leave, overtime, and holidays — ensuring your team’s rights are protected and your records are audit-proof.
You’ll never need to worry about fines, missed filings, or unregistered employment relationships.
3. Simplified payroll and tax reporting
Payroll in Uzbekistan is straightforward once you’re registered.
Employers pay a 25% unified social tax, and employees contribute 7.5% to the pension fund plus 12% income tax. Reporting is monthly through the STC’s electronic portal, using each employee’s unique taxpayer identification number.
If that sounds like a lot of data entry, that’s because it is.
Team Up manages employer of record payroll taxes in Uzbekistan and automates the process through our local payroll infrastructure:
Gross-to-net salary calculation in UZS.
Monthly e-filings with the STC and OFPF.
Digital payslips for your employees.
Single invoice to your finance team in EUR or USD.
You get transparency, your employees get accurate local documentation, and your compliance risk goes to zero.
4. Lower overhead and predictable costs
Here’s the simple financial reality: entity setup in Uzbekistan costs time and money.
Model | Setup Time | Initial Cost | Monthly Admin | Legal Risk |
Own Entity | 6–10 weeks | €1,000–€2,000 | €500–€700 | Moderate |
Team Up EOR | 3–5 days | €0 | €199 per employee | None |
With Team Up, you skip translations, legal consultations, tax registrations, and accounting retainers.
You pay one transparent monthly fee, no surprises, no hidden charges, no setup costs.
That model works perfectly for teams of up to 20 employees. Once your team outgrows that scale, we help you transition into your own local entity smoothly.
It’s compliance outsourcing that grows with your business.
5. Enforceable IP protection and legal security
In Uzbekistan, intellectual property (IP) protection hinges on what’s written in your contracts, not on assumptions.
Under the Civil Code (Articles 1030–1040) and the Law on Copyright and Related Rights (1996), an employee’s work belongs to them unless explicitly transferred to the employer.
That’s a risk many foreign companies overlook.
Team Up solves it from the start. Every employment contract includes:
Clear IP transfer clauses compliant with Uzbek law.
Confidentiality and non-disclosure provisions under the Law on Commercial Secrets (2014).
Dual-language documentation is enforceable in Uzbek courts.
That means your code, designs, and data stay yours, no ownership gaps, no gray areas.
When you hire through an EOR service provider in Uzbekistan, you get legal protection baked into every contract.
6. Access to Uzbekistan’s skilled and affordable workforce
Uzbekistan’s Talent pool is young, bilingual, and ambitious.
Over 60% are under 35, and literacy sits at 99% with a growing focus on technology, engineering, and finance.
The government’s Digital Uzbekistan 2030 initiative has turned Tashkent into a regional IT hub, backed by the Ministry of Digital Technologies.
Universities like Tashkent University of Information Technologies (TUIT) produce thousands of STEM graduates every year, many fluent in Russian and English.
Through Team Up’s EOR network, you can hire:
Software developers (Python, Java, .NET).
Financial and accounting specialists.
Engineers and project managers.
Back-office and data operations teams.
Salaries average €800–€1,200 for mid-level professionals, roughly 50% below Eastern Europe, with retention rates above 85%.
Team Up helps you build that workforce legally, quickly, and with full local support.
7. Compliant employee benefits that boost retention
You can’t compete for talent in Uzbekistan without understanding the benefits.
The labor market is tightening, especially in tech and engineering, and compliance is the first thing local candidates look for.
The Labor Code of the Republic of Uzbekistan guarantees:
Minimum 15 days of paid annual leave (Article 115).
Paid maternity leave of 126 days (Article 231).
Sick leave is covered by the Social Insurance Fund (SIF).
12 national public holidays are recognized by the state.
Team Up doesn’t just meet those standards; we make them competitive.
Through our employer of record services in Uzbekistan, we manage:
Enrollment in health and pension funds.
Optional private medical insurance for premium candidates.
Flexible leave tracking and remote work arrangements.
Meal and transportation stipends are structured to remain tax-efficient.
Every benefit we administer is compliant with the Tax Code (Article 304) and reported through the STC’s electronic portal. That means your employees get the security of a local contract and benefits they actually value without your team managing the paperwork.
8. Streamlined immigration for foreign staff
If you plan to relocate senior staff or foreign engineers, Uzbekistan’s visa system is stricter than Georgia’s or Armenia’s, but manageable when done right.
Foreign employees need both a work permit and residence registration, governed by the Law on the Legal Status of Foreign Citizens (2018) and Resolution No. 589 (2023).
Team Up handles the entire process of employer of record work visa in Uzbekistan in-house:
Quota verification — checking whether your hire qualifies under the Ministry of Labor’s annual foreign worker quotas.
Work permit filing — submitting documentation through the MoLER e-portal with certified translations and contract details.
Residence registration — coordinating with the local migration office in Tashkent or the region of employment.
Renewals — tracking permit expirations and renewals, ensuring uninterrupted employment.
Processing typically takes 10–15 business days, and EOR employees are automatically eligible for long-term residence once employed for over a year.
By hiring through Team Up, you avoid navigating the quota maze or risking fines for noncompliant sponsorship.
9. Reduced legal and financial risk
Here’s the uncomfortable truth: foreign companies that hire contractors in Uzbekistan without a local entity or EOR are often out of compliance.
Misclassification penalties under Article 49 of the Labor Code and the Administrative Code can reach up to 500 BCI (≈ €2,200) per worker, plus back taxes, social contributions, and interest.
Team Up eliminates that exposure entirely.
We act as the official employer, taking full responsibility for:
Contract validity.
Payroll tax filing and social insurance payments.
Pension reporting and benefits compliance.
Legal representation before state authorities.
In short, you’re protected. No surprise audits. No late filings. No unregistered labor contracts floating in translation.
This is why most global companies expanding into Uzbekistan, from logistics firms to fintech startups, use a local Employer of Record rather than risk going it alone.
10. Scalable expansion across Central Asia
Hiring in Uzbekistan shouldn’t be the endgame; it should be your entry point.
The country’s location makes it an ideal operational base for expansion across Central Asia and the Caucasus. It borders Kazakhstan, Kyrgyzstan, and Turkmenistan, and is part of the Eurasian Economic Union’s labor mobility framework, giving your team access to a combined market of over 180 million people.
Through Team Up’s regional EOR network, you can hire in:
All under one framework, one partner, one contract, and one monthly invoice.
That means when you’re ready to expand your support center from Tashkent to Almaty, or your finance hub from Samarkand to Yerevan, you don’t start from scratch. Team Up scales with you, maintaining consistent compliance, payroll systems, and HR support across borders.
Why Uzbekistan over other EOR markets?
Uzbekistan offers a mix that’s rare in global hiring: affordability, growth, and predictability.
1. Pro-business taxation.
12% flat personal income tax.
15% corporate tax.
Full electronic filing via the State Tax Committee. Unlike many emerging economies, Uzbekistan’s system is digital, bilingual, and streamlined for foreign investment.
2. Educated, cost-efficient talent.
STEM enrollment exceeds 55% of all university students (World Bank, 2024).
Average tech salaries sit 50–60% below Eastern Europe, while English proficiency continues to rise, particularly in Tashkent.
3. Strategic geography.
Uzbekistan connects Europe and Asia through rail and energy corridors, making it ideal for logistics, fintech, and service delivery hubs.
4. Stable governance.
The National Development Strategy 2030 prioritizes digitization, tax transparency, and foreign hiring incentives.
For global businesses, that translates into lower risk and smoother scaling.
How to choose the right Employer of Record in Uzbekistan
EOR compliance in Uzbekistan isn’t about glossy websites or dashboards; it’s about legal presence and accuracy.
Here’s what to check before signing with any provider:
1. Registered local entity.
Your EOR must hold a TIN and be registered with the State Tax Committee. Team Up operates its own Uzbek entity, no intermediaries.
2. Bilingual contracts.
Contracts must be in Uzbek and English to be legally enforceable.
3. Local HR and accounting staff.
Avoid “global” EORs that outsource filings to freelance accountants. Team Up employs full-time HR and legal teams in Tashkent.
4. Transparent pricing.
No hidden setup or “implementation” fees. Team Up’s pricing is flat-rate: €199 per employee, per month.
5. Regional continuity.
If you plan to scale into Kazakhstan or Georgia, pick an EOR with local entities there too — not just “coverage.”
Team Up is currently one of the few EOR providers covering Uzbekistan, Kazakhstan, Armenia, Georgia, and Azerbaijan under a single compliance framework.
Conclusion
Uzbekistan gives you what most global markets overcomplicate: speed, savings, and legal certainty.
By hiring through Team Up’s employer of record services in Uzbekistan, you get:
A compliant team in under a week.
Payroll, benefits, and contracts handled end-to-end.
Full protection under local law.
A regional base for Central Asia expansion.
This isn’t just about outsourcing compliance. It’s about building teams faster and smarter, where growth still has room to breathe.
Frequently asked questions
1. What is an Employer of Record (EOR) in Uzbekistan?
An Employer of Record (EOR) in Uzbekistan is a licensed local entity that legally employs workers on behalf of foreign companies. The EOR handles payroll, employment contracts, benefits, and tax compliance with the State Tax Committee (STC) and Off-Budget Pension Fund (OFPF).
Team Up acts as that legal employer in Uzbekistan — managing all statutory filings and HR compliance under the Labor Code of the Republic of Uzbekistan (1996, updated 2022). You keep full operational control while we carry the administrative and legal burden.
2. Is it legal to hire through an EOR in Uzbekistan?
Yes. Hiring through an EOR is fully compliant when the provider:
Operates a registered Uzbek entity.
Signs local labor contracts compliant with Articles 72–80 of the Labor Code.
Files taxes through the State Tax Committee (STC).Team Up meets all these requirements, ensuring your workforce in Uzbekistan is legally employed and protected.
3. How do employer of record services in Uzbekistan work?
You select the employee — Team Up legally employs them in Uzbekistan. We:
Draft a bilingual (Uzbek + English) employment contract.
Register the employee with the STC, OFPF, and Social Insurance Fund (SIF).
Handle payroll, benefits, and monthly filings. You receive one invoice in EUR or USD; your employees receive payslips in Uzbek som (UZS).
4. What taxes apply when hiring employees in Uzbekistan?
Uzbekistan’s payroll structure is straightforward:
12% Personal Income Tax (PIT) withheld by the employer.
25% Social Tax paid by the employer.
7.5% Pension Contribution paid by the employee. All filings go through the State Tax Committee’s e-portal (my.soliq.uz). Team Up manages these obligations end-to-end — ensuring accurate filings, zero late penalties, and full compliance.
5. How much does it cost to use an Employer of Record in Uzbekistan?
Team Up’s employer of record services in Uzbekistan start at €199 per employee per month. This includes:
Payroll and HR administration.
Tax and benefit filings.
Contract management.
Local HR and legal support. There are no setup or hidden fees — just transparent pricing that scales with your headcount.
6. Can an EOR help with work permits for foreign employees?
Yes. Team Up handles the complete work permit and residence registration process under Resolution No. 589 (2023) and the Law on the Legal Status of Foreign Citizens (2018). We manage:
Quota verification through the Ministry of Labor and Employment Relations (MoLER).
Work permit submission via the MoLER online portal.
Residence registration with the Migration Office.
Renewals before expiry. Your foreign hires stay fully legal — no delays, no rejected filings.
7. What employee benefits are mandatory in Uzbekistan?
Under Articles 115–120 of the Labor Code, employers must provide:
15 days of paid annual leave.
126 days of paid maternity leave.
Sick pay through the Social Insurance Fund (SIF).
12 national public holidays.
Team Up administers all legally required benefits, plus optional perks like private health insurance and remote work allowances.
8. How does an EOR protect intellectual property (IP) in Uzbekistan?
Uzbek law grants employees default ownership of their work unless stated otherwise. To protect your IP, Team Up’s bilingual employment contracts include:
IP assignment clauses under the Civil Code (Articles 1030–1040).
Confidentiality & NDA provisions under the Law on Commercial Secrets (2014).
Jurisdictional protection is enforceable in Uzbek courts. You retain complete ownership of your code, data, or creative work, legally and securely.
9. What are the main advantages of hiring through an EOR in Uzbekistan?
Hire legally in days, not months.
Avoid entity setup and administrative overhead.
Ensure full compliance with tax and labor law.
Offer local benefits and payroll without complexity.
Scale across Central Asia through Team Up’s regional EOR network.
10. Which industries benefit most from EOR hiring in Uzbekistan?
EOR services are especially popular among:
IT & Software Development
Financial Services & Fintech
Engineering & Energy
Manufacturing & Logistics
Customer Support & BPO
With Digital Uzbekistan 2030 pushing tech innovation, foreign companies are increasingly hiring developers, engineers, and analysts through Team Up’s EOR framework.