On February 28, 2025, the International Business Council (IBC), together with the Ministry of Labor, Social Security and Migration, discussed innovations in the adopted Labor Code of the Kyrgyz Republic.

Simplifying the regulation of labor relations is one of the key factors in increasing the country's investment attractiveness. The more transparent and balanced the labor legislation is, the more employers will formalize labor relations and invest in the development of human capital.

“For many years, IBC has been actively working on the liberalization of labor legislation, striving to achieve a balance of interests between workers and employers,” said Askar Sydykov, IBC Executive Director.

Mukhtarbek Baimurzaev, First Deputy Minister of Labor, Social Security and Migration of the Kyrgyz Republic, delivered a welcoming speech at the meeting.

The event was attended by companies from the banking, mining, telecommunications, food, logistics, education and other sectors of the economy, as well as representatives of government agencies and diplomatic missions.

IBC assists in drafting new bill

The proposal of the Ministry of Labor and Social Protection to develop a new draft Labor Code was supported by the head of the Cabinet of Ministers back in September 2022 at a meeting of the Investment Council.

At all stages of the draft law development, IBC actively participated in working groups under the Labor Ministry, making more than a hundred proposals, several dozen of which were taken into account in the final version of the code.

As a result, on January 23, 2025, the President of the Kyrgyz Republic Sadyr Japarov signed the Labor Code, adopted by the Parliament on December 18, 2024.

Key changes in the Labor Code

Бермет Карабаева, зав. отделом труда в Министерстве труда, социального обеспечения и миграции, ознакомила участников встречи с новой редакцией Трудового кодекса КР, рассказала о преимуществах нового документа.

Bermet Karabaeva, head of the labor department at the Ministry of Labor, Social Security and Migration, informed the meeting participants about the new version of the Labor Code and its advantages.

As a result of optimization, the Labor Code now has 267 articles instead of 446.

One of the key innovations is the official recognition of remote and hybrid work. Now employees can perform their duties remotely or in a hybrid format, which is especially relevant in the context of technological development and digitalization.

Electronic employment contracts and work books have been introduced, which significantly simplifies the process of employment registration and personnel records. These changes help reduce bureaucratic procedures and increase the transparency of labor relations.

Previously, the limitation period for disputes over the collection of wages was unlimited, and now it is 3 years from the day when such wages should have been paid in accordance with the legislation of the Kyrgyz Republic.

A fine of 0.25% has been introduced for each day of delay in payment of wages, vacation pay, and final settlement upon dismissal. Previously, the penalty was 0.5% (after dismissal) and 0.15% (during work).

Internships are now a form of on-the-job training that helps develop professional skills.

Social support for vulnerable groups of the population is also provided. Mandatory quotas for the employment of graduates of orphanages and persons with disabilities have been introduced.

Many of these innovations were initiated by business representatives, including IBC members.

STS e-service

The State Tax Service under the Ministry of Finance of the Kyrgyz Republic has introduced an electronic service for maintaining a register of hired workers in the Taxpayer's Cabinet (cabinet.salyk.kg). According to the legislation of the Kyrgyz Republic, all employers are required to enter up-to-date data about their employees into this register.

Senior Inspector of the STS Operational Control Department Esengul Ormonbekov demonstrated the functionality of the registry and answered questions from participants.

The event ended with an open discussion, during which government officials provided clarifications on current business issues.

IBC will continue to improve the investment attractiveness of Kyrgyzstan, and will also promote dialogue between business and government agencies to develop effective solutions and promote reforms.

The meeting materials can be found at the link:

https://ibckg-my.sharepoint.com/:f:/g/personal/corporate_ibc_kg/EoydeJpgjyxApPkVt9Kmrw4B3CPWjZzPSvxmp_aPB-ijug?e=w2uUD5