How to Hire Remote Employees In 


The Basics

Turkmenistani manat
Employer Taxes
Payroll Frequency
Official Language

Employment in 


Hire Independent Contractors

Independent contractors or freelancers are self-employed individuals who provide services to companies as a non-employee. This is one of the most common ways companies tend to hire non-local designers, engineers, support reps, etc.

For legal and tax purposes, independent contractors are not classified as employees. They may work for multiple clients, set their own work hours, negotiate their pay rate, and decide how a job gets done.

For example, the IRS says that if an independent contractor or freelancer does work that can be controlled (what will be done and how it will be done) by an employer then they are, in fact, classified as an employee.

As you can imagine, hiring someone as an independent contractor versus an employee is a fine line to tread.

While there are benefits when you choose the contractor route, there are quite a few drawbacks to consider and you’ll need to weigh them carefully to determine the best fit for your company.

Benefits of Hiring Independent Contractors
Time savings: Hiring through a subsidiary or EOR can take months of onerous paperwork and legal wrangling. This is only multiplied if you want to hire in multiple countries.
Reduced overhead: You can save tens of thousands of dollars in onboarding costs by hiring through a company like Panther. You also have fewer responsibilities to provide benefits, further reducing overhead.
Greater flexibility: Contractors can be brought on as-needed. If they are not a good fit, you can choose not to renew them without incurring significant additional termination costs.
Reduced legal risk: Contractors generally don't have the host of legal protections that typically cover full-time employees.
Disadvantages of Hiring Independent Contractors
Risk of Misclassification: While it's important to understand local contractor law, for most firms, misclassification risk is minimal.
Lack of Control: For a worker to be classified as a contractor, they should be allowed to work independently on their assigned tasks. Hiring full-time employees offers a wider range of management options.
Lack of Loyalty: Contractors come and go as-needed. Many companies hire contractors for short-term work, which makes it difficult to cultivate loyalty.

Set up a subsidiary in 


A foreign subsidiary is a company that operates overseas as part of a larger company who’s HQ is in another country.

Establishing a foreign entity is great for having an international presence and accessing new markets. Though, setting up a subsidiary in Turkmenistan can be expensive, stressful, and time-consuming. It's not for the faint of heart.

To set up a subsidiary in Turkmenistan, you have to:

  1. Register your business name and file articles of incorporation
  2. File for local bank accounts
  3. Learn and keep track of the local employment laws
  4. Set up local payroll
  5. Hire local accounting, legal, and HR people

If you're lucky, this process can take months. If you're not so lucky, it can take up to a year. And on average, it costs about $50k-$80k, all-in-all, to get setup. And that's just for Turkmenistan.

Use an Employer-of-Record (EOR)

An employer-of-record (EOR) is a company that hires and pays an employee on behalf of another company.

An EOR is typically used to overcome the financial and regulatory hurdles that often come with employing remote workers.

Each country has its own payroll, employment, and work permit requirements for non-resident companies doing business in their jurisdiction. Meeting those demands can be a huge obstacle when it comes to hiring remotely.

At Panther, we help companies employ and pay people in over 160 countries, without having to set up a foreign subsidiary. Payroll, benefits, taxes, compliance, and more are all handled by us, at a fraction of the cost.

Outside of saving you months and tens of thousands of dollars, other advantages of using Panther are:

  • Ability to attract talented and motivated employees from all over the world.
  • Full legal compliance: There is no risk of violating local employment laws.
  • Transparency: Employees are still your employees. All the work, processes, operations and day-to-day business belong to you, the company, just like with any other employee. Panther just takes on all of the responsibilities, obligations and admin work related to your team's employment.
  • No risk of misclassification

Because you no longer have to set up your own subsidiary, you’ll save a ton of time and tens of thousands of dollars using Panther.

Paying Remote Employees

Paying employees in Turkmenistan is not the same as paying workers in your own country. Employees have to be paid using Turkmenistan’s employment and payroll standards.

This means that you have to know, understand, and keep up with 1) fluctuating currency changes, and 2) local payroll and tax laws in the countries you’re looking to hire in.

Outside of the laws and regulations around payroll, there may be different conditions surrounding leave, overtime, termination, and more. As you can imagine, maintaining this kind of regulatory knowledge can be challenging. But it is crucial and necessary to follow local legislation.

After, you’ll have to determine the best way to pay your international employees. This can be done in a number of ways, including but not limited to:

Pay through a local entity

One of the most challenging (and expensive) parts of paying international employees is setting up the infrastructure to do so.

Before you start to run payroll, you have to register your company as the local employer in the country the worker resides in. As you can see in the “Set up a subsidiary” section, this is a multi-step process that can take up to a year and put you on your way to bankruptcy.

Work with an EOR

Outside of EORs acting as the full admin employer, many also provide remote payroll.

For example, at Panther, in just 1-click, you’re able to pay your entire global team, anywhere in the world. We send you an invoice each month, charge you in US Dollars, and pay your employees the same amount in their local currency.

We factor in currency fluctuations and use the mid-market rate plus any applicable fee passed on by our provider at cost at the time of billing.


 Specific Information

Working Hours

The standard work duration for a full-time employee does not exceed 40 hours per week.

For teenagers (aged between 16 and 18 years), the work hours cannot exceed 36 hours per week and 24 hours a week for persons below sixteen years of age. Typically, office timings in Turkmenistan are from 9 am to 6 pm.


Overtime work must not exceed 4 hours for each employee on 2 consecutive days and 120 hours per year.

Payroll Tax



  • Pension Insurance

Minimum Wage

In January 1, 2021 the minimum wage in Turkmenistan was set at TMT 957 per month.


Pay Cycle

Employees in Turkmenistan receives their salary in monthly basis.

13th Salary

Turkmenistan offers a supplemental benefits including the 13-month bonuses.


Paid Time Off (PTO)

PTO is calculated by the:

  • The right to receive annual basic leave during the first year of work comes after eleven months of continuous work from the date of the conclusion of the employment contract.
  • Annual basic leave for the second and subsequent years of work is provided in accordance with the vacation schedule established at the organization.

An employee has the right to postpone or extend the annual basic leave if:

  • temporary incapacity for work;
  • granting maternity leave;
  • the coincidence of the annual basic leave with leave in connection with studies, additional leave for marriage or the ceremony of burial and commemoration;
  • fulfillment of state duties or duties in an elected body.

Public Holidays

There are 9 public paid holidays in Turkmenistan:

  • New Year (31st December - 1st Jan)
  • International Women’s Day (8th March)
  • Navruz (21-22 March)
  • Oraza Bayram (13th May)
  • Constitution and State Flag Day (18th May)
  • Kurban Bayram (20-22 July) Independence Day (27 September)
  • Memorial Day (6th October)
  • International Day of Neutrality (12th December)

Sick Days

There is no specific statutory right to sick leave in most cases.

However, employees are entitled to unpaid leave to care for a sick family member, with the length of the leave based on the recommendations of the medical institution that is caring for the relative.

Maternity Leave

Female employees under Article 68 of the Social Security Code receive 112 days of fully paid maternity leave with 56 days before the estimated date of birth and 56 days after giving birth.

The paid maternity leave is extended by 16 days if there are birth complications, and by 40 days in the event of multiple births.

Paternity Leave

There is no statutory paternity leave beyond the option for the father to take parental leave, except for in a few circumstances where the mother is not present in the child’s life.

Parental Leave

A woman, regardless of the length of service, after the expiration of maternity leave, has the right to unpaid parental leave until the child reaches the age of three years.

Leave to care for a child may also be granted to the person actually caring for the child, including the father, guardian of the child, as well as, in cases established by the legislation of Turkmenistan, to another relative.

Parental leave can be used in whole or in parts. A person who is on parental leave until the child reaches the age of three has the right to interrupt the vacation and start work before the expiration of the parental leave, notifying the employer about this two weeks before going to work. In this case, the annual basic leave is provided for the actual time worked.

Other Leave

In Turkmenistan an additional leave for  upon reaching the Age of 62 –  3 calendar day is provided to citizens upon reaching the age of 62 years, or such leave can also be added to the main annual leave.

A person injured as a result of a radiation catastrophe shall be granted additional leave of up to fifteen calendar days.

Marriage Leave

10 calendar days, given 5 days before marriage.

Bereavement Leave

An additional leave of 10 calendar days to complete the funeral rite and commemoration on the basis of a certificate issued by the state civil registry office are provided to two close relatives of the deceased.


Termination Process

Employers can terminate an employment contract for economic or business reasons which render the employee redundant or based on the employee’s conduct or performance.

The employer is obligated to notify the employee in writing. 

Special rules and procedures apply to redundancy dismissals and employee misconduct.

Notice Period

The notice period is either two weeks or two months depending on the reason for the termination.

Only three days of notice is required during the probation period.

Severance Pay

Severance pay must be paid in most situations when the employer terminates an employment contract for a reason other than the employee’s misconduct.

Probation Period

Probation period does not exceed 3 months.

Once the employment contract ends, the probationary period does not apply to people belonging to the below-mentioned categories:

  1. Persons below the age of 18 years
  2. Persons with disabilities
  3. Seasonal workers
  4. Pregnant employees
  5. Persons who have graduated from secondary vocational and higher education institutions and are coming to work in their specialty for the first time.
  6. Persons working in public paid jobs.