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IMPACT – LOW
What is the change? Kazakhstan has approved a budget that will keep the minimum wage at 42,500 Kazakhstani tenge (about US$110) per month for 2020.
What does the change mean? Companies should ensure that all work permit applications meet or exceed the threshold salary levels for foreign workers.
Analysis & Comments: Kazakhstan’s minimum monthly salary was raised significantly in 2019 but will remain stable in 2020. Foreign employees in Kazakhstan must meet strict criteria as highly-qualified workers, experts or executives, and their salaries typically already exceed the thresholds.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
IMPACT – MEDIUM
What is the change? Kazakhstan has expanded its visa waiver program to include nationals of 12 additional countries.
What does the change mean? Nationals from the affected countries are now visa waivered. The visa waiver can be used for tourism and short-term business travel.
Additional information: Nationals of the following countries are now visa waivered for up to 30 days:
Analysis & Comments: The expansion of the visa waiver program will ease travel procedures for nationals of 12 countries traveling to Kazakhstan for tourism and short-term business stays. Employees conducting work activities in Kazakhstan must apply for the applicable visa prior to entry.
What is the change? Kazakhstan has introduced new passport registration procedures for EAEU and Uzbek nationals.
What does the change mean? According to the resolution, foreign nationals from Belarus and Russia must register their passports within 30 calendar days of arrival. Uzbek, Kyrgyz, and Armenian nationals entering Kazakhstan must register their passports within five calendar days of arrival. Additionally, the grace period to complete registration has changed for Belarussian and Russian nationals.
Background: Generally, foreign nationals are not required to register their passports, as passport registration is completed on the basis of information provided by the inviting party to the Migration Police in the form of a notification. In some cases, registration is completed upon arrival.
However, certain visa-waivered nationals, including EAEU and Uzbek nationals, are required to complete the passport registration themselves. Additionally, if these nationals are visiting for work or business purposes and have an inviting party in Kazakhstan, the inviting party must submit notification to the Migration Police within three business days of arrival. Previously, Russian and Belarussian nationals had up to 35 calendar days to register while Uzbek nationals had up to 10 calendar days.
Analysis & Comments: The procedure clarifies the amount of time for Armenian, Belarussian, Kyrgyz, Russian and Uzbek nationals to register their passports upon arrival in Kazakhstan.
What is the reminder? Companies in need of work permits for foreign workers in quota-subject job categories are reminded that they must file quota applications by July 31.
Additional information: Filing a quota application is an annual requirement for companies that rely on foreign workers in job categories subject to quotas. The quota application must contain the number of work permit holders the company currently has as well as the number the company intends to hire in 2020. Applications must be submitted in any region of Kazakhstan where the company has operations. Companies should not include foreign workers who do not require a work permit or those who will be working as an intra-corporate transferee. Authorities may reject applications in cases where employers have a record of violating immigration or labor law.
Analysis & Comments: Companies should begin preparing their quota applications in order to meet the deadline. Companies that do not file the applications may have difficulty hiring foreign workers in quota-subject jobs next year. In addition to the mandatory quota application, employers are encouraged to file voluntary projections of their foreign labor needs for 2020 with the Department of Labor. This may allow them to receive priority consideration when additional quota numbers become available.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? Kazakhstan has introduced a single-entry e-visa program for nationals of 117 countries.
What does the change mean? Nationals from the affected countries are now eligible for a single-entry tourist visa, while nationals from 23 countries are now eligible for a single-entry business and/or medical treatment visa with a valid letter of invitation. Foreign nationals may use the e-visa when entering Kazakhstan through Nur-Sultan (Astana) and Almaty international airports.
Background: Nationals of the following countries are now eligible for single-entry e-visas with a maximum authorized stay of up to 90 days (depending on the visa category):
Nationalities Eligible for e-Visa Program
**Nationalities eligible for tourist, business and medical treatment e-visas.
All other nationalities are eligible for a tourist e-visa.
Analysis & Comments: The e-visa program will ease travel procedures for nationals of 117 countries traveling to Kazakhstan for tourism and for nationals of 23 countries traveling to Kazakhstan for short-term business stays. Travelers using the e-visa must enter/exit Kazakhstan through either Nur-Sultan (Astana) or Almaty airport. Those applying for a business e-visa must submit a valid letter of invitation. Employees conducting work activities in Kazakhstan must apply for the applicable visa prior to entry.
What is the change? The Atyrau Labor Department now accepts electronic work permit applications.
What does the change mean? Electronic work permit applications in the Atyrau region may now be submitted through the e-license portal. To do so, employers must have an electronic digital signature, login and registration to the e-license portal, where they should select “to order online service.”
Background: The acceptance of electronic applications for work permits in the Atyrau region is part of a countrywide automation of the work permit process. The deadline for transition to electronic applications in all regions is Jan. 1.
Analysis & Comments: Electronic work permit applications will make it easier and faster for employers to apply for work permits in Kazakhstan.
What is the change? The Kazakhstan government has passed a number of amendments to the country’s migration procedures and regulations.
What does the change mean? They include changes to visa application procedures, entry policies and company notifications of foreign nationals’ arrivals.
Key changes:
BAL Analysis: Companies that host foreign nationals in Kazakhstan are encouraged to review internal procedures to make sure they align with the changes above and that they regularly report the arrival of foreign nationals within three business days.
This alert has been provided by the BAL Global Practice group and our network provider located in Kazakhstan. For additional information, please contact your BAL attorney.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Employers in need of work permits for foreign workers in quota-subject job categories are reminded that they should file their quota applications by July 31.
What does the change mean? Companies that have not already done so should submit their applications by the deadline.
Background: Filing a quota application is an annual requirement for companies that rely on foreign workers in job categories where quotas apply.
BAL Analysis: Companies should be sure to meet the July 31 deadline and should note that quota applications must be filed in any region where the company will have foreign labor needs in 2019. Companies that do not file the applications cannot apply for work permits if quotas expire.
What is the change? Employers in need of work permits for foreign workers in quota-subject job categories in 2019 should file their quota applications by July 31.
What does the change mean? Companies that have not already done so should begin preparing their quota applications in order to meet the deadline.
BAL Analysis: Filing a quota application is an annual requirement for companies that rely on foreign workers in job categories where quotas apply. Companies that do not file the applications cannot apply for work permits if quotas expire. In addition to the mandatory quota application, employers are encouraged to file voluntary projections of their foreign labor needs for 2019 with the Department of Labor. This may allow them to receive priority consideration when additional quota numbers become available.
What is the change? Kazakhstan has introduced a two-year and three-year work permit option for first-category employees. The work permit fee rates have been updated to include the new permit options.
What does the change mean? Employers filing work permit applications for chief executives or deputy chief executives may now apply for two-year or three-year work permits. The fee rates in the chart below were updated to include the new work permit options for first-category employees. The fees are calculated by multiplying the country’s monthly calculation index (currently 2,405 tenges, or about US$7.30) by the relevant multipliers in the chart below. Work permit fee rates will remain the same for second-, third- and fourth-category employees.
Background: Work permits fees vary depending on the category of worker and the industry.
Foreign nationals eligible for work permits are divided into four categories: first-category employees (chief executives and deputy chief executives), second-category employees (managers and department heads), third-category employees (qualified specialists who do not qualify as second category employees) and fourth-category employees (all other qualified workers). Kazakhstan’s Ministry of Labor recently added a two-year and three-year work permit option for first-category employees. The fee rates were updated to adjust for these new permit options.
The fees are calculated by multiplying the Monthly Calculation Index, currently 2,405 tenges, by the relevant multiplier in the chart above. Fees will apply to both new and renewal work permit applications. It is not possible to extend a current one-year work permit for first-category employees to two or three years. First-category work permits issued after April 16 are eligible for the two- or three-year option.
BAL Analysis: Businesses should consider the new work permit options for first-category employees planning to work in Kazakhstan for more than one year. Those with questions about how the fee structure works or what categories foreign workers should be placed in should contact their BAL professional.