Kazakhstan Severance & Termination Pay Calculator
Calculate statutory severance compensation (выходное пособие): 1 to 2 average monthly salaries for redundancy/liquidation, accrued unused vacation pay, and statutory tax-exempt limits in KZT (₸).
Termination & Earnings Details
Total Termination Payout Due (Итого к выплате)
575,000 ₸
Severance Compensation
350,000 ₸
Unused Vacation Pay
225,000 ₸
Statutory Settlement Component Matrix
| Settlement Element | Statutory Basis | Amount (KZT) |
|---|
Kazakhstan Termination Rights & Severance Protections
1. Mandatory Redundancy Compensation
When a company reduces staff or liquidates under Article 52 of the Labor Code, Article 131 mandates payment of at least 1 average monthly salary as severance compensation.
This payment is designed to cushion the transition to new employment. Crucially, the statutory severance compensation within legal limits is exempt from IPN income tax and OPV pension deductions under the Tax Code.
2. Complete Vacation Pay Settlement
Unused annual leave never expires upon termination. Employers must compensate every accrued day based on average daily earnings over the last 12 months.
Failure to disburse the complete final settlement within 3 working days triggers statutory penalty interest payable to the employee for each day of delay under Article 113 of the Labor Code.
Frequently Asked Questions
When is severance pay (компенсационная выплата при увольнении) mandatory in Kazakhstan? ▼
Under Article 131 of the Labor Code of the Republic of Kazakhstan (ТК РК), severance compensation is legally mandatory when employment is terminated due to: (1) Liquidation of the employer, (2) Reduction in employee headcount or staff (сокращение численности или штата), or (3) Employer breach of labor contract terms.
What is the statutory minimum severance amount for redundancy in Kazakhstan? ▼
The statutory minimum severance payment is equal to 1 average monthly salary (средняя заработная плата). However, labor contracts, collective agreements, or employer internal regulations may establish higher compensation amounts, such as 2 or 3 average monthly salaries.
How is unused annual vacation compensation calculated upon termination? ▼
Under Article 96 of the Labor Code, an employee whose contract is terminated is legally entitled to compensation for all accrued but unused days of paid annual vacation. It is calculated by multiplying the employee's average daily wage (среднедневной заработок) by the exact number of unused vacation calendar/working days.
Are severance payments subject to Individual Income Tax (ИПН) and pension (ОПВ)? ▼
Under sub-clause 17 of clause 1 of Article 341 of the Tax Code of Kazakhstan, statutory severance payments made within the limits established by the Labor Code (e.g., 1 average monthly salary for redundancy) are completely exempt from Individual Income Tax (ИПН), OPV pension deductions, and social taxes.
Within what timeframe must the final termination settlement be paid? ▼
Under Article 113 of the Labor Code, all sums due to the employee (including final salary, severance compensation, and unused vacation pay) must be disbursed no later than 3 working days following the termination of the employment contract.
Engr. Muhammad Shahzad
Lead Systems Architect & Statutory Specialist15+ years of specialized technical architecture experience in statutory tax modeling, financial calculation engines, and cross-border regulatory compliance. All Kazakhstan tax, labor, and pension calculations are strictly mapped to statutory mandates from the Tax Code (Налоговый кодекс РК), the Social Code (Социальный кодекс РК), and the Labor Code (Трудовой кодекс РК).
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Central Asian & Kazakhstan State Revenue Committee Architect
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.