How to Hire Remote Employees In 

Tajikistan

The Basics

Currency
Employer Taxes
Payroll Frequency
Official Language

Employment in 

Tajikistan

Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Reduced overhead: Lower cost in expenses, payroll, benefits, and more.
Greater flexibility: Contractors can be brought on as-needed. If not a good fit, you simply don’t have to move forward with the contract.
Reduced legal risk: Contractors aren’t usually protected by employment anti-discrimination and workplace safety laws.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: Not only does this deny workers their proper protections, it can also result in steep penalties and damage to your company. If the IRS determines that employee misclassification has occurred, you will be liable for a percentage of the employees wages, FICA contributions, penalty fines, unpaid taxes, up to a year in prison, and more.
Lack of Control: Contractors are drawn to being independent because it gives them greater control over the work they perform and who they work with. Because they’re not employees, you can’t tell them what to work on and how it should be done.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.
Increased Scrutiny: Using Independent Contractors typically leads to an increased risk of being audited.

Set up a subsidiary in 

Tajikistan

A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Tajikistan can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Tajikistan, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Tajikistan.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Tajikistan  is not the same as paying workers in your own country. Employees have to be paid using Tajikistan’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.

Tajikistan

 Specific Information

Working Hours

Regular length of working time in Organization shall not exceed 40 hours in a week.

Reduced length of working time of not more than 35 hours a week is defined for the employees exposed to the negative impact of physical, chemical, biological and other factors during the employment process.

Overtime

It shall be prohibited to work overtime in case of 12 hour shift and also the works with especially severe and harmful conditions.

Overtime cannot exceed within two days continuously: -

  • Two hours for works with severe or harmful conditions
  • four hours for other works
  • Overtime for every employee shall not exceed 120 hours a year.

Payroll Tax

Employer

Minimum Wage

Payroll

Pay Cycle

13th Salary

“13th month payment” is not mandatory.

Leave

Paid Time Off (PTO)

PTO is calculated by the:

Public Holidays

There are 14 public holidays.

Sick Days

The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:

  • Employees are obliged to inform their employer about any sickness requiring an absence from work and the expected duration of this absence as soon as possible (generally the first day of the sick leave).
  • When an employee is absent due to illness for three consecutive days, they are required to provide proof of medical consultation upon returning to work.

Maternity Leave

In Article 164, the Labor Code provides that women shall be granted a maternity leave of 70 calendar days before delivery and 70 calendar days after delivery.

Paternity Leave

There is no paternity leave.

Parental Leave

There is no parental leave.

Other Leave

None.

Marriage Leave

None.

Bereavement Leave

None.

Termination

Termination Process

Labor contract can be terminated in the following cases:

  • by the mutual agreement of parties
  • by the initiatives of the Employee
  • by the initiatives of the Employer
  • after its expiration
  • in circumstances beyond the control of parties
  • transfer of Employee to another job (position) based on his/her selection or appointment to another position (post), which excludes the possibility of continuation of the labor contract, except the cases envisaged by the legislation of the Republic of Tajikistan.

The labor contract termination is documented by a document issued by the Employer except the cases when it is terminated due to death of the Employer or the court declares the Employer – individual entity, home worker and domestic workers to have died or missing.

The Employer is obliged to inform the Employee in writing about the termination of labor contract signed for indefinite period within the following timelines: -

In case of labor contract termination due to the liquidation of organization or termination of operation of employer- individual entity or redundancy of the number of staff or job unit - not later than two months in advance;

In case the labor contract is terminated because the Employee is not suitable to his/her work due to lack of qualification or health state - not later than one months.

During the notification period, the Employee has the right to be absent in work not less than one day a week by holding his/her full salary to search another job.

By the agreement of parties, the labor contract can be terminated for the outlined reasons before the end of notification period by providing compensation equal to not less than average daily remuneration for the everyday remaining until the end of this period.

The Employer is obliged to inform the relevant authorized public entity on labor and employment about the upcoming (expected) dismissal of staff by outlining their specialty, professional degree and salary size within the timelines defined by the legislation of the Republic of Tajikistan.

Notice Period

The notice period in Tajikistan is:

The Employer is obliged to inform the Employee in writing about the termination of labor contract signed for indefinite period within the following timelines:

  • In case of labor contract termination due to the liquidation of organization or termination of operation of employer-individual entity or redundancy of the number of staff or job unit - not later than two months in advance.
  • In case the labor contract is terminated because the Employee is not suitable to his/her work due to lack of qualification or health state - not later than one months.

During the notification period, the Employee has the right to be absent in work not less than one day a week by holding his/her full salary to search another job.

By the agreement of parties, the labor contract can be terminated for the outlined reasons before the end of notification period by providing compensation equal to not less than average daily remuneration for the everyday remaining until the end of this period.

The Employer is obliged to inform the relevant authorized public entity on labor and employment about the upcoming (expected) dismissal of staff by outlining their specialty, professional degree and salary size within the timelines defined by the legislation of the Republic of Tajikistan.

Severance Pay

The employee is paid a one-time severance pay upon termination of the employment contract: at the initiative of the employer and in circumstances beyond the control of the parties.

The amount of the severance pay cannot be lower than the size of the employee’s three average monthly salaries.

Probation Period

Standard employment contracts are not generally time restricted.

They usually include a probation period of 3 to 6 months.