Uzbekistan Allows Partial Payment of Wages in Goods

The Cabinet of Ministers in Uzbekistan has made a decision (No. 286, 13.07.2023) regarding the payment of wages in kind. This means that employees can be paid with goods instead of money, but only if they give their written consent. The following situations allow for payment in kind:

• Employees can receive food and agricultural products produced by their employer for their own use or for their family.
• Employers who hire domestic servants can provide them with food and temporary accommodation instead of regular wages.
• The employee's agreement to receive payment in kind must be stated in the employment contract, and the total value of the goods provided cannot exceed 30 percent of the total wages.

There are some restrictions on the payment of wages in kind:

• If less than 50 percent of the employee's salary is withheld, the total value of the goods provided cannot exceed 10 percent of the salary.
• If more than 50 percent of the employee's salary is withheld, payment in kind is not allowed.

Certain practices are prohibited when paying wages in kind:

• Paying in kind when the employee's monthly salary is lower than the minimum amount set by the law.
• Charging higher prices for agricultural products and food than their actual cost.
• Using goods like alcohol, tobacco, medicines, cannabis, or other prohibited agricultural products for payment.
• Charging higher prices for food and temporary housing for domestic workers than the market price.