Accurate payroll management is a critical component of business operations. Proper payroll accounting ensures timely salary payments, compliance with labor and tax legislation, and smooth financial operations. A well-organized payroll system also reduces risks, improves employee satisfaction, and supports efficient company management.
Loialte’s team of experienced accounting and HR professionals provides comprehensive payroll accounting and administration services in Uzbekistan, including:
By partnering with Loialte, your company receives professional payroll management services that ensure legal compliance, reduce administrative burdens, and allow your team to focus on core business activities while maintaining accurate and transparent payroll operations.
In 2026, the standard payroll tax burden in Uzbekistan remains structured around a 12% Social Tax paid by the employer and a 12% Personal Income Tax (PIT) withheld from the employee’s gross salary. According to the Tax Code of Uzbekistan, the employer is also responsible for withholding a 0.1% contribution from the employee’s gross pay for the individual cumulative pension accounts (INPS). Practically, this means the total cost of employment for a company is approximately 112.1% of the gross salary, while the employee receives a net amount of roughly 87.9%. Legally, certain entities, such as IT Park residents, may benefit from significantly reduced rates, including a 0% or 1% Social Tax and a capped 7.5% PIT for their staff. It is a strict legal requirement to calculate these taxes monthly and remit them to the state budget by the 15th of the following month. Failure to accurately withhold or remit these taxes can lead to the suspension of the company’s “Taxpayer Sustainability” rating and result in automated financial penalties.
As of April 2026, the statutory minimum wage (MROT) in Uzbekistan is set at 1,271,000 UZS per month, serving as the absolute legal floor for full-time employment. According to the Labor Code, no employee working full hours can be paid less than this amount, and it serves as the base for calculating various social benefits, fines, and the Base Calculation Unit (BHM). Practically, payroll accountants must ensure that even the lowest-paid roles are adjusted whenever the government announces an indexation, which typically happens once or twice a year to account for inflation. Legally, the minimum wage is also used to determine the threshold for “Highly Qualified Specialists,” who must earn at least 8,500 times the BHM annually to maintain their simplified work permit status. For part-time workers, the minimum wage is applied proportionally to the hours worked. Paying below this threshold is a serious labor violation that can trigger an immediate unscheduled inspection by the State Labor Inspection.
Employers in Uzbekistan are legally required to pay wages at least twice a month at intervals not exceeding 16 days, typically split into an “advance” (prepayment) and a “final” settlement. According to the Labor Code and the Tax Code, the monthly report on Personal Income Tax and Social Tax must be submitted electronically via the “taxes.uz” portal no later than the 15th day of the month following the reporting period. Practically, most companies schedule the advance payment between the 15th and 20th of the current month and the final payment between the 1st and 5th of the following month. Legally, any delay in salary payment entitles the employee to compensation, and repeated delays can lead to criminal liability for the company director. All payroll data must also be synchronized with the Unified National Labor System (my.mehnat.uz) to ensure that the reported salaries match the registered employment contracts. Missing the reporting deadline results in an automated block on the company’s ability to issue electronic invoices.
Starting in 2026, the financial burden for social benefits has shifted, with the employer now only responsible for paying the first 5 days of sick leave per year, while the state covers the remaining period. According to the Tax Code and social protection regulations, maternity benefits are also paid directly by the state through the Social Protection Agency, provided the employee’s “insurance experience” is correctly recorded in the digital labor system. Practically, the payroll accountant must still calculate these amounts for reporting purposes but will only physically disburse the portion mandated by law for the employer to cover. Legally, for the state to take over these payments, the HR department must link the electronic medical certificate (bolnichniy) to the employee’s profile in the my.mehnat.uz portal. This reform significantly reduces the “cash flow” impact of long-term absences on small businesses. Failure to correctly document these absences in the digital portal will result in the employee losing their state benefit and the employer being held liable for the full amount.
Under the Law “On Accounting,” every legal entity in Uzbekistan must maintain a set of mandatory payroll documents, including the “Personal Account” (Kardochka) for each employee, payroll sheets (Vedomost), and formal orders for all payments. Legally, these records must be kept for a minimum of 75 years (for personal files and payroll summaries) to ensure that employees can prove their work history for future pension claims. Practically, in 2026, most of these records are generated through automated accounting software like 1C:Enterprise, which must be integrated with the state’s electronic reporting systems. The accountant must also maintain a “Staffing Table” (Shtatnoe raspisanie) that aligns with the actual salaries paid and the vacancies registered on the national labor portal. During a tax or labor audit, any discrepancy between the physical payroll sheets and the digital tax reports is considered a major compliance failure. Proper archiving—whether digital or physical—is essential for defending the company against claims of “unregistered labor” or tax evasion.
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Uzbekistan, Tashkent
United Arab Emirates, Dubai
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Uzbekistan, Tashkent
United Arab Emirates, Dubai
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