Uzbekistan Social Contributions Guide 2026

Overview — Social Security in Uzbekistan

Uzbekistan's social security system was reformed in recent years to introduce Individual Cumulative Pension Accounts (ICPA) and to reduce the burden on the state pension system. The system consists of mandatory pension contributions from employees and a social tax paid by employers. The social tax funds the state pension system, social insurance (sickness, maternity, unemployment), and healthcare. The reforms have gradually increased the retirement age from 55/60 to 58/63 (women/men) by 2027. The system is administered through the Tax Committee, which collects contributions alongside income tax.

Employee Contribution — 6.5% to ICPA

Employees must contribute 6.5% of their gross monthly salary to the Individual Cumulative Pension Account (ICPA). Key features:

• The contribution is deducted at source by the employer and remitted to the Pension Fund
• Funds are recorded in the employee's individual account
• Contributions are capped at a maximum monthly amount (linked to a multiple of the minimum wage)
• Self-employed individuals contribute at the same rate based on declared income
• ICPA funds may be inherited by beneficiaries upon the contributor's death
• Employers must file monthly contribution reports by the 10th of the following month

Employer Social Tax — 12% (Standard)

Employers in Uzbekistan pay a social tax on total employee payroll. The standard rate is 12%, paid entirely by the employer with no employee portion. The social tax funds:

• State pension obligations — the majority of the tax funds the PAYGO state pension system
• Social insurance — sickness, maternity leave, and temporary disability benefits
• Unemployment benefits — employment support and retraining programmes

Reduced social tax rates apply to certain categories: 7% for companies in free economic zones, 1% for IT Park residents, and 0% for certain disability organisations. The social tax is deductible for CIT purposes. The tax is calculated on gross salary with no upper ceiling (unlike the employee pension contribution).

Individual Cumulative Pension Accounts (ICPA)

The ICPA system was introduced to supplement the state PAYGO pension. Key features of the ICPA:

• Each employee has an individual account maintained by the Pension Fund
• Employee contributions of 6.5% are credited to the account monthly
• Funds are invested in government securities and designated instruments
• Interest is credited to the account at a rate set by the government (typically inflation + 2-4%)
• Upon retirement, the accumulated balance is paid as a lump sum or monthly supplement to the state pension
• Early withdrawal is not permitted except for disability, emigration, or death

Total Employment Cost Calculation

For an employee earning UZS 10,000,000 per month, the total employment cost is:

• Gross salary — UZS 10,000,000
• Employee deduction (6.5%) — UZS 650,000 (pension contribution)
• IIT (12% on taxable amount) — approximately UZS 1,050,000
• Net salary to employee — approximately UZS 8,300,000
• Employer social tax (12%) — UZS 1,200,000
• Total employer cost — UZS 11,200,000

The total effective tax wedge (tax + contributions as percentage of total employer cost) is approximately 37%.

FAQs

Can I withdraw my ICPA contributions before retirement?

Generally, no. ICPA funds are locked until retirement age except in cases of permanent disability, emigration from Uzbekistan, or death of the contributor (beneficiaries inherit).

Are self-employed individuals required to contribute?

Self-employed individuals are not required to contribute to the pension system but may do so voluntarily. Registration for voluntary contributions is done through the State Tax Committee.

What happens to my pension contributions if I leave Uzbekistan permanently?

If you emigrate from Uzbekistan permanently, you may apply for a refund of your ICPA balance. Documentation of emigration and permanent residence abroad is required.

Disclaimer

This guide provides general information about Uzbek social contributions for the 2026 tax year. Contribution rates and pension regulations may change. Always consult with a qualified Uzbek tax advisor or the Ministry of Employment for advice specific to your situation. InvestmentKit does not provide tax or pension advice.