Eldar Tajibaev noted that three years ago, 73% of the working population was in the informal sector without formal employment relationships. According to the National Statistical Committee, out of approximately 3 million working-age citizens, only about 450 thousand had official employment contracts, and there were also around 500 thousand individual entrepreneurs and those working under a patent. "Thus, out of 3 million, only 2 million people were working legally," he added.
As of today, according to the expert's estimates, more than half of the employed are officially employed. This is due to the actions of government bodies, including the reduction of insurance contributions from 27.25% to 12.25%. From this amount, the employer pays 2.25%, and the employee pays 10%.
Tajibaev also highlighted another reason contributing to the legalization of workers, namely the practice of withholding income tax based on the average salary rather than actual income. As an example, he cited the situation in Bishkek: with an average salary of 44 thousand soms, the tax would amount to 4.4 thousand soms. "If the salary is only 10 thousand soms, then they will withhold 1 thousand, but will additionally charge another 3.4 thousand," he explained.
According to the expert, this system reduces the attractiveness of "double bookkeeping" and encourages employers to register their employees. "Many employers come and say that there is no longer any point in hiding, and they ask for help in legalizing their workers. We are actively working on this issue," Tajibaev concluded.
