How to Calculate Local Staff Ratios for Foreign Personnel in Kazakhstan
How to Calculate Local Staff Ratios for Foreign Personnel in Kazakhstan
This article provides an overview for companies that operate or plan to enter the Kazakhstan market and wish to hire foreign personnel.
Categories of attracted personnel
In Kazakhstan, the employment of foreign labor is regulated by special rules, and work permits are issued by category:
-
Category 1
Executives and their deputies (e.g. CEO, Company President, Executive Director) -
Category 2
Heads of structural subdivisions (e.g. Department Heads, Chief Accountant, IT Manager) -
Category 3
Specialists (e.g. Engineer, IT Specialist, Translator) -
Category 4
Skilled workers (e.g. Welders, Technicians, complex machine operator)
When a company hires Category 1 and Category 2 foreign workers, employers often wonder: do they need to hire more Kazakhstan citizens at the same time, and can this requirement be met by hiring Category 3 and Category 4 employees?
The short answer is no, you cannot do that. The local content requirement for staff is calculated separately for each respective job category.
At the same time, companies must maintain the following ratios: at least 70% Kazakhstan citizens among executives and managers (Categories 1 and 2), and at least 90% among specialists and skilled workers (Categories 3 and 4).
The short answer is no, you cannot do that. The local content requirement for staff is calculated separately for each respective job category.
At the same time, companies must maintain the following ratios: at least 70% Kazakhstan citizens among executives and managers (Categories 1 and 2), and at least 90% among specialists and skilled workers (Categories 3 and 4).
How the Ratio of Kazakhstan Citizens is Calculated
If a company has hired Category 1 and Category 2 foreign workers, the calculation is not based on the company as a whole, but specifically on the group of positions to which these expatriates belong. In other words, if we are talking about managerial positions, Kazakhstani employees must be retained precisely within that part of the organizational structure.
A simple example: If there are 30 foreign employees in Categories 1 and 2, this does not mean you simply need to hire 70 more workers of any kind. Compliance is verified based on the workforce composition within that specific category. Therefore, Kazakhstan citizens must hold a sufficient share precisely within the management block, rather than having this gap compensated for by specialists or workers.
A simple example: If there are 30 foreign employees in Categories 1 and 2, this does not mean you simply need to hire 70 more workers of any kind. Compliance is verified based on the workforce composition within that specific category. Therefore, Kazakhstan citizens must hold a sufficient share precisely within the management block, rather than having this gap compensated for by specialists or workers.
Why Categories 3 and 4 Do Not Qualify
Categories 3 and 4 are subject to their own regulatory logic. They apply to specialists and skilled workers, so hiring in these areas cannot substitute for meeting the requirements for executives and their deputies. If a company attempts to "make up" the required number of Kazakhstan citizens using other categories, it will not fix the non-compliance in Categories 1 and 2.
In practice, this is crucial during employer audits and when issuing or renewing foreign labor permits. If the ratio is violated, it can create a risk of permit denial or claims from the regulatory authorities.
In practice, this is crucial during employer audits and when issuing or renewing foreign labor permits. If the ratio is violated, it can create a risk of permit denial or claims from the regulatory authorities.
Practical Takeaway
For employers, the main rule of thumb is this: you must calculate the ratio by the specific category in which foreigners are employed, not "across the company as a whole." Therefore, if foreign nationals hold managerial positions, the requirement for the share of Kazakhstan citizens must be met specifically among executives and deputies, not among the entire staff.
If a company plans to hire foreign workers, it is best to review the organizational structure and staff ratios in advance to avoid violations. This is particularly important for organizations where foreign specialists are involved in management, project launches, or expertise transfer.
Citizens of the EAEU member states (the Russian Federation, the Kyrgyz Republic, the Republic of Belarus, and the Republic of Armenia) carry out labor activities in the territory of the Republic of Kazakhstan without obtaining a work permit on the basis of an employment contract. Information on the full list of categories exempt from local work permit requirements is available via the link
The requirements regarding compliance with the established ratio of local to foreign employees do not apply to small businesses with 20 or fewer employees.
Hiring 70 Kazakhstan citizens in Categories 3 and 4 instead of meeting the required ratio for Categories 1 and 2 is not allowed. The workforce localization requirement is calculated separately for each respective category, and the established share of Kazakhstan citizens must be maintained within those specific categories.
Try our online tool to instantly check if your organizational structure complies with requirements.
If a company plans to hire foreign workers, it is best to review the organizational structure and staff ratios in advance to avoid violations. This is particularly important for organizations where foreign specialists are involved in management, project launches, or expertise transfer.
Exemptions
Citizens of the EAEU member states (the Russian Federation, the Kyrgyz Republic, the Republic of Belarus, and the Republic of Armenia) carry out labor activities in the territory of the Republic of Kazakhstan without obtaining a work permit on the basis of an employment contract. Information on the full list of categories exempt from local work permit requirements is available via the link
The requirements regarding compliance with the established ratio of local to foreign employees do not apply to small businesses with 20 or fewer employees.
Summary
Hiring 70 Kazakhstan citizens in Categories 3 and 4 instead of meeting the required ratio for Categories 1 and 2 is not allowed. The workforce localization requirement is calculated separately for each respective category, and the established share of Kazakhstan citizens must be maintained within those specific categories.
Try our online tool to instantly check if your organizational structure complies with requirements.
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About WPK
WPK Consulting Company is a 100% Kazakhstani-owned company founded in 2002, with offices in Astana, Almaty, and Atyrau.
For over 20 years, we have specialized in immigration law and business process outsourcing.
Our consultants support foreign companies of all sizes in Kazakhstan, providing services and representing the interests of HR managers, specialists, foreign executives, and employees.
For over 20 years, we have specialized in immigration law and business process outsourcing.
Our consultants support foreign companies of all sizes in Kazakhstan, providing services and representing the interests of HR managers, specialists, foreign executives, and employees.
About WPK
WPK Consulting Company is a 100% Kazakhstani-owned company founded in 2002, with offices in Astana, Almaty, and Atyrau.
For over 20 years, we have specialized in immigration law and business process outsourcing.
Our consultants support foreign companies of all sizes in Kazakhstan, providing services and representing the interests of HR managers, specialists, foreign executives, and employees.
For over 20 years, we have specialized in immigration law and business process outsourcing.
Our consultants support foreign companies of all sizes in Kazakhstan, providing services and representing the interests of HR managers, specialists, foreign executives, and employees.