Payroll in Uzbekistan in 2026 rests on two rates: 12% personal income tax (PIT) is withheld from the employee, and the employer pays 12% social tax on top from its own funds (for most companies). Withheld PIT is remitted at the same time as the salary is paid, and the PIT and social tax return is filed monthly, no later than the 15th of the following month. Below: what is withheld, what the employer pays, which deadlines apply, how vacation and sick pay work, and a worked example.
Payroll in Uzbekistan 2026: what is withheld and what the employer pays
The key distinction in payroll is who bears each tax. PIT is the employee's tax: the company acts as a tax agent, withholds it from gross pay and remits it to the budget. Social tax is the employer's tax: it is charged on top of the payroll fund and is never deducted from the salary.
| Payment | Rate (2026) | Borne by | How it is paid |
|---|---|---|---|
| PIT for residents | 12% | Employee (withheld) | With each payment of income, no later than the filing deadline |
| INPS contribution (funded pension) | 0.1% of taxable income | Employee, inside the PIT amount | PIT due is reduced by the contribution |
| Social tax | 12% (25% for budget organisations) | Employer | Monthly, no later than the filing deadline |
How the INPS contribution works
The mandatory monthly contribution to the individual funded pension account (INPS) is 0.1% of taxable income. It is not an extra deduction: the Tax Code provides that the computed PIT is reduced by the amount of this contribution. The employee's take-home pay is the same as under 12% PIT, and 0.1% goes to the employee's pension account instead of the budget.
Minimum wage
From 1 September 2026 the minimum wage is UZS 1,360,000 per month (previously UZS 1,271,000). The salary of an employee who has worked the full monthly working-time norm may not be lower than this. If any salaries in your company sat at the old minimum, they needed to be raised from the September payroll.
Salary payment and filing deadlines
- Paying salaries — at least once every half month. Under the Labour Code the monthly salary is, as a rule, paid in two parts (advance and balance) with a gap of no more than 16 days. Exact dates are fixed in the collective agreement, an internal policy or the employment contract.
- Remitting withheld PIT — at the same time as income is paid to the employee, but no later than the filing deadline. The advance counts as a payment of income.
- PIT and social tax return — monthly, no later than the 15th of the month after the reporting month; the annual return is due by 15 February of the following year.
- Paying social tax — monthly, no later than the filing deadline.
If the last day of a deadline falls on a weekend or a non-working public holiday, the Tax Code moves it to the next working day. All dates for the year are in our 2026 reporting calendar.
Vacation pay and sick pay: the basics
Annual leave
- The minimum annual basic leave is 21 calendar days.
- The right to leave for the first year of work arises after six months of continuous work with the employer (earlier by agreement and for certain categories of employees).
- Average earnings for vacation pay are based on the 12 months preceding the month of leave; the Labour Code uses an average of 25.3 working days per month.
- Sundays are excluded when paying for annual leave.
- Vacation pay must be paid no later than the last working day before the leave starts.
Temporary disability (sick) benefit
An updated procedure applies from 1 July 2026: the employer pays for the first five days of incapacity, and from the sixth day the benefit is paid by the State Social Insurance Fund. The amount depends on the insurance record: 60% of average earnings for 6 months to 8 years of record and 80% for more than 8 years; higher coefficients apply to certain categories. Earnings are counted up to ten times the minimum wage. In practice there are open questions about whether "the first five days" means per sick-leave episode or per year, so check the procedure against current official guidance.
Worked payroll example
Illustrative example: a resident employee with a salary of UZS 8,000,000, a full month worked, no exemptions or deductions. The figure is chosen purely for illustration.
| Item | Calculation | Amount, UZS |
|---|---|---|
| Gross salary | — | 8,000,000 |
| PIT withheld | 8,000,000 × 12% | 960,000 |
| of which INPS contribution | 8,000,000 × 0.1% | 8,000 |
| of which PIT to the budget | 960,000 − 8,000 | 952,000 |
| Net pay to the employee | 8,000,000 − 960,000 | 7,040,000 |
| Social tax (employer's cost) | 8,000,000 × 12% | 960,000 |
| Total cost of the employee to the company | 8,000,000 + 960,000 | 8,960,000 |
If the salary is paid in two parts, PIT is withheld and remitted from each payment, not only at the end of the month.
Common employer mistakes
- Remitting PIT "later". The tax is due when income is paid, including the advance. Pushing it to month-end creates arrears and late-payment interest.
- Salaries below the minimum wage after it rises. From 1 September 2026 the benchmark is UZS 1,360,000 for a fully worked month.
- Confusing withholding with employer charges. Social tax is not deducted from the employee's pay; it is a company expense.
- Wrong base for vacation pay. Using the wrong months, including one-off payments, or not excluding Sundays.
- No HR documents behind the payroll. Timesheets, orders and employment contracts in the Unified National Labour System must match the calculation. See our article on HR records in Uzbekistan.
- Final settlement not made on the termination day. All amounts due, including compensation for unused leave, are paid on the day the employment contract ends.
When to outsource payroll
If there is no dedicated payroll specialist and employees are paid in two instalments, go on leave and take sick days, errors accumulate unnoticed. WealthWise provides outsourced payroll services in Uzbekistan: accruals, withholdings, vacation and sick pay, the PIT and social tax return, plus the related HR administration. These services are part of the Small Business plan, from 5,490,000 UZS per month (see pricing). To discuss your situation, contact us.
Frequently asked questions
What is the PIT rate on salaries in Uzbekistan in 2026?
12% for residents. The employer withholds it as a tax agent; the amount is reduced by the INPS contribution of 0.1% of taxable income, so without exemptions the employee takes home 88% of gross pay.
Is social tax deducted from the employee's salary?
No. The employer pays social tax from its own funds at 12% (25% for budget organisations). It does not reduce what the employee receives.
What is the current minimum wage in Uzbekistan?
UZS 1,360,000 per month from 1 September 2026. Before that date UZS 1,271,000 applied.
When is the PIT and social tax return due?
Monthly by the 15th of the following month, and the annual return by 15 February of the following year. If the date falls on a weekend, the deadline moves to the next working day.
Who pays sick leave in 2026?
From 1 July 2026 the employer pays for the first five days and the State Social Insurance Fund pays from the sixth day. The benefit is 60% or 80% of average earnings depending on the insurance record.
This information is current as of 2026. Rates, the minimum wage and payment rules may change — check current legislation or consult a specialist before running payroll.