Question 1

When is severance pay due?

Accepted Answer

Severance pay is paid upon dismissal at the employer's initiative: liquidation of the organization, staff reduction, as well as dismissal for health reasons or military conscription. Upon dismissal by mutual agreement, the amount is determined by negotiation.

Question 2

How much severance pay is due on redundancy?

Accepted Answer

On staff reduction or organizational liquidation, the employee receives severance of at least two average monthly salaries (Art. 107, Labour Code). During the job-seeking period (up to two months), the employee retains their average salary.

Question 3

When must severance pay be made?

Accepted Answer

Severance pay is paid on the last working day. At the same time, the employee receives their work record book and all outstanding payments, including compensation for unused vacation.

Question 4

Is severance pay taxable?

Accepted Answer

Yes, severance pay is personal income and is subject to 12% PIT. However, in some cases exemptions may apply — consult an accountant for your specific situation.

Question 5

Is vacation compensation included in severance pay?

Accepted Answer

No, compensation for unused annual vacation is a separate payment. It is calculated independently of severance pay and is also paid on the last working day.

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Severance Pay in Uzbekistan 2025

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