Flat 12% tax. INPS inside the PIT. Uzbekistan payroll, solved.
Uzbekistan’s payroll looks simple – one flat 12% income tax, one 12% employer social tax – but the detail is unforgiving. It demands the INPS 0.1% redirected from inside the PIT (not added on top), the 12%-vs-25% social-tax classification, IT Park incentives with export-share conditions, and BHM-indexed thresholds that reset each September. Most providers get the headline rate right and the mechanics wrong. Mercans gets both right – on a single proprietary stack with no intermediaries.
native payroll
vs nearest peer
since inception
- Income Tax (PIT)
- 12% flat on employment income
- Corporate Tax (CIT)
- 15% (banks 20%)
- Social Tax (ER)
- 12% standard · 25% budget
- INPS Pension
- 0.1% carved from PIT (not extra)
- Employee Social Contrib.
- None – only the 12% PIT
- Non-Resident PIT
- 12% flat (reduced from 20%)
- IT Park PIT
- 7.5% for IT Park staff
- IT Park Social + CIT
- 0% until Jan 2028
- Minimum Wage
- UZS 1,360,000 / month (1 Sep 2026)
- Base Calc Value (BHM)
- UZS 440,000 (1 Sep 2026)
- Overtime Standard
- Min 200% (double rate)
- Annual Leave
- Min 21 calendar days
- Notice Period
- 2 months (redundancy)
- Severance
- 50%–200% avg wage by tenure
- Working Week
- 40 hours
- Filing & Payment
- Monthly · by the 15th
Payroll compliance: the details that can’t be missed
Uzbekistan’s regulators don’t grade on a curve. The State Tax Committee reconciles the monthly PIT and social-tax return against the INPS remittance per worker. A budget-vs-private misclassification doubles or halves social tax. IT Park incentives lapse if export-share conditions are missed. The flat 12% rate hides mechanics – the INPS carve-out, the non-resident harmonisation, the BHM reset – that accumulate silently until an audit makes them very visible.
Social-tax classification (12% vs 25%)
Social tax is 12% for most legal entities but 25% for budget-financed organisations, 4.7% for disabled-worker workshops, and 7% for SOS Children’s Villages. Applying the wrong category doubles or halves the employer’s liability – caught on the monthly return and reconciled retroactively with penalties.
INPS 0.1% treated as an extra cost
The INPS individual pension contribution is 0.1% redirected from within the 12% PIT already withheld – not an additional deduction. Systems that add 0.1% on top over-withhold from the employee; systems that omit the split under-fund the individual pension account. Both surface on reconciliation.
Resident vs non-resident status errors
Non-residents are now taxed at 12% on Uzbek-source employment income (reduced from 20%), but residency turns on the 183-day test and treaty status. Misapplying the old 20% rate over-withholds; missing the 183-day threshold misclassifies the whole calculation. Both trigger corrections and interest.
IT Park incentive eligibility lapse
IT Park residents enjoy 7.5% PIT and 0% social tax and CIT until 2028 – but must meet rising export-share conditions (20% by 2026, 35% by 2027), and from April 2026 payment providers, marketplaces, and microfinance lose eligibility. A lapsed status retroactively restores standard 12% / 12% / 15% rates.
The three types of providers who struggle with Uzbekistan
Global Aggregator Platforms
Platforms like Deel, Remote, and Rippling operate through a partner network in Uzbekistan – they don’t own the entity, don’t directly file the monthly STC return, and don’t control the compliance relationship. When regulations change, the instruction travels: platform → partner → your payroll. Each handoff introduces delay and interpretation risk.
- ×No direct State Tax Committee relationship – a third party files returns
- ×INPS 0.1%-from-PIT carve-out mishandled or added on top
- ×Budget-vs-private social-tax classification left to the partner
- ×Regulatory updates filtered through partner SLAs, not live
Large Global Payroll Incumbents
ADP, Ceridian, and similar incumbents have Uzbekistan coverage – in name. In practice, their Central Asia coverage is often delivered through regional partners or legacy systems that weren’t built for the INPS carve-out, the IT Park incentive regime, or BHM-indexed thresholds that reset each September.
- ×INPS redirection modelled as an add-on, not a carve-out from PIT
- ×IT Park 7.5% / 0% regime handled manually or not at all
- ×BHM and minimum-wage resets hardcoded, not dynamic
- ×Long implementation timelines – Uzbekistan not a core market
Local Uzbek Firms
Local Uzbek accounting and bookkeeping firms know the market – but they can’t scale with you. No payroll technology platform, no HRIS integration, no multi-country consolidation, and no data security certifications that multinationals require. Fine for 10 employees. Inadequate at 100.
- ×No proprietary payroll technology – manual spreadsheet-based processing
- ×No HCM connector – Workday, SAP, Oracle feeds require custom work
- ×No data security certifications (SOC 1/2, ISO 27701, BCR)
- ×No Central Asia consolidation – cannot report across regional entities
The only provider that closes every gap
Mercans is the only Uzbekistan payroll provider that combines a proprietary payroll technology stack, full-time in-country compliance teams, direct State Tax Committee relationships, and enterprise-grade data security – simultaneously, on one contract, with no intermediaries.
The only engine built for Uzbekistan’s actual payroll architecture
G2N Nova™ is the world’s only API-first gross-to-net payroll engine. It natively models Uzbekistan’s flat 12% PIT, the INPS 0.1% redirected from inside the tax – not added on top, the 12%-vs-25% social-tax classification, the IT Park 7.5% / 0% regime, and BHM-indexed thresholds, then auto-generates the monthly STC return. This isn’t configuration. It’s engineering.
Full-time Uzbekistan team – not a partner you phone when things break
Mercans employs full-time payroll and compliance professionals in Uzbekistan. They maintain active relationships with the State Tax Committee, the Pension Fund, and the Ministry of Employment – not through a contact directory, but through ongoing regulatory engagement. When the STC issues a ruling, when the INPS rate or IT Park conditions change, when the annual BHM resets the thresholds – we know before it reaches your inbox.
The security posture multinationals require – and Uzbekistan’s data law now mandates
Uzbekistan’s Law on Personal Data (ZRU-547, 2019) requires operators processing citizens’ personal data to store it on servers located in Uzbekistan and maintain documented privacy controls. Mercans holds BCR approval, ISO 27701 certification, SOC 1 & 2 certifications, and ISO 27017/27018 – the only payroll provider in Central Asia with this complete certification stack. Zero security breaches since inception.
Where Mercans wins on every Uzbekistan-specific capability
Each row is an Uzbekistan-specific capability. Each cell shows native coverage as a fill bar – full = native in-platform, half = partial / manual workaround, empty = gap.
Uzbekistan Capability Coverage · 10 dimensions
redirection, not add-on
export-share conditions
resets each September
Workday · SAP · Oracle
Every rate. Every cap. Every obligation.
Uzbekistan payroll operates on exact numbers with hard deadlines. Mercans builds every figure below into G2N Nova™ and monitors them proactively – so you’re never discovering a rate change from a penalty notice.
Uzbekistan · Rate & Compliance Dashboard
Live 2025–26Employees Bear Only the PIT – No Separate Social Security
Uzbek employees pay a flat 12% PIT and nothing else – no separate pension, health, or unemployment deduction. All social-tax cost sits with the employer at 12% (25% for budget bodies). This inverts the regional norm and re-shapes both net pay and true cost of employment. Mercans’ G2N Nova™ models the employer-only structure exactly.
→ Employer-only social-tax model in G2N Nova™The INPS 0.1% Is a Redirection, Not an Extra Deduction
The individual accumulative pension contribution of 0.1% is taken from within the 12% PIT already withheld – the employee’s burden stays 12%, with 0.1% routed to a personal pension account and the balance to the budget. Treating it as an add-on over-withholds; ignoring the split under-funds the account.
→ INPS carve-out split modelled natively in G2N Nova™Social-Tax Classification and IT Park Incentives
Social tax is 12% for most employers but 25% for budget organisations, with 4.7% and 7% special categories. IT Park residents instead pay 0% social tax and CIT and 7.5% PIT until 2028, subject to export-share conditions. Both the classification and the incentive status must be applied correctly every run.
→ Classification + IT Park regime automated in G2N Nova™Non-Resident Harmonisation and Residency
Non-resident employment income is now taxed at 12%, down from 20%, aligning with residents; dividends and interest are 10% and freight 6%. Residency turns on the 183-day test and treaty status. Applying the obsolete 20% rate over-withholds and forces refunds; missing the day-count misclassifies the whole calculation.
→ Residency and treaty logic in HR Blizz™Run an Uzbekistan payroll. Right here, right now.
Switch worker type. Move the slider. Every number you see is the same calculation G2N Nova™ runs in production – flat 12% income tax, the INPS 0.1% carved from inside the PIT, employer social tax, and true cost of employment exposed live.
Uzbekistan Social Contribution Calculator · Live
G2N Nova™ engineEight things only Uzbekistan experts know to handle
These are the compliance details that don’t appear in standard payroll setup guides – but appear in every State Tax Committee audit, INPS reconciliation, and labour dispute we’ve encountered in Uzbekistan over 12 years.
INPS Is Carved From Inside the PIT – Not Added On Top
The individual accumulative pension (INPS) contribution is 0.1%, but it is redirected from within the 12% PIT already withheld – the employee’s total burden stays 12%. Of that, 0.1% goes to the worker’s personal pension account and the balance to the budget. Adding it on top over-withholds; omitting the split under-funds the account.
Social Tax Is 12% or 25% Depending on the Employer Type
Employer social tax is 12% for most legal entities but 25% for budget-financed organisations, 4.7% for specialised disabled-worker workshops, and 7% for SOS Children’s Villages. It is charged on the gross payroll of local and foreign employees alike, and misclassification doubles or halves the liability.
Employees Bear Only the 12% PIT – No Separate Contributions
Unlike most of the region, Uzbek employees pay no separate pension, health, or unemployment contribution. Their only statutory deduction is the flat 12% PIT (with the 0.1% INPS carve-out inside it). All social-tax cost sits with the employer, which changes the whole net-pay and cost-of-employment picture.
IT Park Residents Run on a Different Rate Card
Employees of IT Park resident companies pay 7.5% PIT instead of 12%, and the company is exempt from social tax and corporate income tax until 1 January 2028. Eligibility depends on rising export-share conditions (20% by 2026, 35% by 2027), and from April 2026 payment providers, marketplaces, and microfinance lose access.
Non-Resident Rate Was Harmonised to 12%
The PIT rate on Uzbek-source employment income of non-residents was reduced from 20% to 12%, matching residents. Dividends and interest are 10% for non-residents, and freight income 6%. Residency turns on the 183-day test and treaty status – applying the obsolete 20% rate over-withholds and triggers refunds.
The BHM Base Value Indexes Thresholds – and Resets Each September
The Base Calculation Value (BHM, UZS 440,000) indexes many statutory thresholds, fees, and penalties, while the minimum wage (UZS 1,360,000/mo) is a separate figure. Both are typically revised on 1 September, so mid-year runs sit on a re-basing boundary that hardcoded values miss.
Severance and Notice Follow the New 2023 Labour Code
The Labour Code in force since April 2023 sets redundancy severance on a tenure scale – from 50% of average monthly salary (up to 3 years) to 200% (over 15 years) – with two months’ written notice for staff reductions. Overtime is paid at a minimum of 200%, capped at 120 hours per year.
PIT and Social Tax Are Filed and Paid Monthly by the 15th
The combined PIT and social-tax return is filed monthly, with payment due by the 15th of the following month, alongside the INPS remittance per worker. Corporate income tax payers above the income threshold make monthly advances by the 23rd. The split cadence between filings trips up many systems.
One workforce. Two entirely different compliance tracks.
Resident employees on the flat 12% PIT with the INPS carve-out vs. non-residents and IT Park staff on distinct rate cards requires two compliance frameworks, two treatments of the pension split, and two views of true cost of employment. Mercans runs both simultaneously on every pay cycle.
Parallel Compliance Engines
Flat 12% PIT is the only employee deduction. No separate pension, health, or unemployment contribution applies – the employee bears just the 12% income tax, with the 0.1% INPS carve-out routed to a personal pension account from inside it.
The employer carries the social tax. Social tax of 12% (25% for budget organisations) is charged on gross payroll and paid entirely by the employer – there is no employee-side social-security match.
INPS is a redirection, not an add-on. 0.1% of the taxable base is carved from the 12% PIT and credited to the worker’s individual accumulative pension account; the total employee burden stays 12%.
Return and payment are monthly, by the 15th. The combined PIT and social-tax return is filed and paid by the 15th of the following month via soliq.uz, with the INPS remittance reconciled per employee.
Non-residents are taxed at a flat 12%. Uzbek-source employment income of non-residents is withheld at 12% (reduced from 20%), with no INPS participation. Dividends and interest are 10% and freight income 6%.
Residency drives everything. The 183-day test and treaty status determine whether resident or non-resident treatment applies. Applying the obsolete 20% rate over-withholds and forces refunds.
IT Park staff run on 7.5% PIT. Employees of IT Park resident companies pay 7.5% PIT, and the company is exempt from social tax and CIT until 2028 – subject to rising export-share conditions.
Work permits gate foreign hiring. Foreign nationals generally require a work permit and confirmation before employment begins. Standard 12% withholding applies to permitted non-resident workers.
Every obligation. Every authority. Mercans owns the calendar.
Uzbekistan compliance runs across the State Tax Committee, the Pension Fund, and the Ministry of Employment on monthly, annual, and event-triggered cadences. Mercans’ managed payroll absorbs every filing as standard scope – you don’t track deadlines. We do.
PIT & Social Tax Return
The combined personal-income-tax and social-tax return is filed monthly via soliq.uz, with payment due by the 15th of the following month. It reports the 12% PIT withheld, the INPS carve-out, and the 12%/25% social tax per employee. Late filing triggers penalty interest assessed by the State Tax Committee.
INPS Pension Remittance
The 0.1% individual accumulative pension contribution – carved from within the 12% PIT – is credited to each worker’s personal pension account and reconciled per employee. Adding it on top or omitting the split surfaces as an individual-account discrepancy.
Corporate Income Tax Advance
Corporate income tax payers with annual income above the statutory threshold make monthly advance payments by the 23rd, at the 15% CIT rate (20% for banks). Advances reconcile against the annual return and against deductible payroll costs.
CIT Annual Return
The annual corporate income tax return summarises profit and deductible costs, including payroll, for the calendar year, at the 15% rate. It reconciles against the monthly advances and the payroll declarations filed through the year.
IT Park Export-Share Reporting
IT Park residents must evidence rising export-share thresholds (20% by 2026, 35% by 2027) to keep the 7.5% PIT and 0% social-tax and CIT incentives. From April 2026 payment providers, marketplaces, and microfinance lose eligibility. A lapse restores standard rates retroactively.
Minimum Wage / BHM Re-Basing
The minimum wage (UZS 1,360,000) and the Base Calculation Value (BHM, UZS 440,000) are typically revised on 1 September and re-base statutory thresholds, fees, and penalties. Each September the engine must re-apply the new figures across the payroll.
Hire / Termination & Work Permits
New hires and terminations must be reflected in the next monthly return, and foreign nationals generally require a work permit before employment begins. Final settlement on termination includes accrued leave payout and any severance due under the 2023 Labour Code.
Severance Calculation & Settlement
Redundancy severance follows a tenure scale – from 50% of average monthly salary (up to 3 years) to 200% (over 15 years) – with two months’ written notice for staff reductions. Final pay must clear on the termination date.
Uzbekistan is one market. Mercans covers Central Asia and the CIS.
For companies running payroll across multiple Central Asian and CIS states, complexity multiplies – not adds. Each country runs its own tax authority, social insurance body, and filing mandate. Mercans covers all major markets on a single platform with country-specific compliance engines running in parallel.
covered
1 contract
consolidation
Central Asia / CIS
Every filing. Every format. Submission-ready.
Mercans generates the exact file types that the State Tax Committee, the Pension Fund, and the Ministry of Employment expect to receive – not formatted summaries that need reformatting before you can submit them.
