Wages in Uzbekistan in 2021

Salaries in Uzbekistan in 2021 are quite low. Uzbekistan is not on the list of economically prosperous countries. Salaries here are much lower than in any European country. In this regard, the working population is forced to save a lot and carefully plan the family budget.

This article will tell you about average salaries in Uzbekistan, as well as professions in which you can achieve high earnings.

Average salary in Uzbekistan

In Uzbekistan, just like in Russia, Ukraine and Belarus, the problem of local currency inflation is pressing. From year to year, the authorities of the Republic try to support the country’s economy so that the population has the opportunity to acquire housing, transport, open enterprises and, in general, live a full life. But real data so far suggests that, despite the efforts of the government, little is changing in the lives of the citizens themselves.

The average income of the population of Uzbekistan slightly exceeds the mark of 1.5 million soums, which is equivalent to $130 per month. The monthly salaries of Uzbek workers are recalculated annually in order to prevent a sharp decline in the standard of living of citizens.

The maximum average monthly salary can reach $180–200, depending on the qualifications of the employee and the city in which he is employed.

Dynamics of changes in wages in Uzbekistan over the past 5 years

Over the past 5 years, average monthly earnings in the Republic of Uzbekistan have increased by more than 20%, reaching, according to official data, about 14.4 thousand rubles. or 1.8 million soums. The greatest increase was noted in the field of logistics, financial and insurance activities, IT and industrial enterprises.

Thus, in 2021, a law was approved, according to which a further increase in earnings is expected by an average of 7%. In fact, at the current level of wages, more than 70% of the country’s residents can hardly cope with making at least mandatory payments, not to mention any excesses.

Below is a graph of fluctuations in average wages over the years in Uzbekistan. Since the amount of earnings is presented by official bodies in millions, for more convenient reading of the graph, a reduction has been made to thousands of soums per month.

Chart 1. Dynamics of changes in wages in Uzbekistan over the past 5 years Source: State Statistics Committee of the Republic

This is interesting! How wages have increased in Ukraine over the past 5 years.

Minimum salary in Uzbekistan

When talking about the minimum monthly salary in Uzbekistan, we must take into account that the cost of living in the Republic is significantly lower than in other countries of the former USSR. The minimum wage in the country increased to 184,300 soums (about $24). For residents of Russia, this amount is catastrophically small for full life support, but in Uzbekistan things are somewhat different. Here the cost of food barely reaches 5,500 soums, and housing can be rented for $100–150. Thus, an Uzbek family consisting of several working people (4-5 workers) easily covers the most necessary expenses.

In most cases, unskilled employees or students who have no work experience receive the minimum wage. A citizen who lives alone and receives the minimum wage can only count on purchasing food and renting a room in a hostel or on the outskirts of the city.

The minimum benefit for disabled residents without work experience is approximately 221,190 soums each month. The government of Uzbekistan has taken measures to ensure that all salaries to employees are paid on time.

The minimum wage in Uzbekistan does not entirely objectively reflect the real income of the population. In the private sector, salaries are much higher than in the public sector. Also, wages vary greatly between regions. The poorest people live in rural areas. In cities, average wages are close to the world average.

Minimum, average and maximum salaries

According to statistics, about 13% of citizens live below the poverty line. The low standard of living in rural areas is especially clearly reflected. In cities, incomes are higher, but, as a rule, one person cannot independently provide housing and food. It is possible to make ends meet within a family of 3 or more people.

The support of citizens from the state is felt in the annual indexation of wages and reforms leading to the stabilization of the economic situation in the country. But even taking into account the fact that the population’s income is constantly recalculated and maintained at the proper level, it is difficult to live in Uzbekistan.

In 2021, the president signed a decree increasing the minimum labor rate to 149,800 soums, which is only 1,150 rubles. Based on this amount, alternative budget payments are formed: pensions, scholarships, social benefits for disability, and so on. The minimum wage is not able to cover the necessary needs, so many citizens leave for Russia and other countries of the former CIS.

On average, a resident of Uzbekistan earns 235 dollars (15,000 rubles). These data are provided by European statistics and are more accurate today. At the beginning of a career, an employee without experience can count on an income of $60 (3,850 rubles). This amount of payments is in blue-collar occupations, such as welders, installers, and loaders. Depending on the region of residence and profession, the salary increases. The amount of payments is also affected by length of service and the size of the enterprise. In the public sector, wages are lower than in the private sector; this law applies everywhere in the former Soviet countries.

Representatives of the following professions are considered the most affluent: programmers, lawyers, creative managers, auditors, technologists, and sales representatives. This social stratum receives salaries of up to $400 (25,500 rubles). This amount of income was recorded in Tashkent; in the regions it is significantly lower.

Tax system of Uzbekistan

There are about 20 types of taxes in Uzbekistan that strengthen the financial well-being of the country.

The following taxes are withheld from residents' income:

• personal income tax;
• contributions to INPS (individual savings pension account);
• mandatory insurance contributions to an off-budget pension fund;
• Income tax is withheld from total official income.

The state has 4 income tax rates:

• 0% - zero;
• 7.5% - minimum;
• 16.5% - average;
• 22.5% is the maximum.

A number of social contributions include deductions for INPS, which amount to 2% of the employee’s official salary minus the minimum amount that is not subject to personal income tax (172,240 soums). Insurance contributions to the extra-budgetary pension fund amount to 8% of the employee’s official earnings.

The following are not subject to taxes:

• money spent on a mortgage;
• amounts of material support;
• income received from the sale of private property;
• severance pay;
• scholarships;
• pension payments;
• government compensation;
• money received for participation in the donor program.

Additionally, tax deductions are provided for the export and import of goods, as well as for organizing the circulation of goods that require special permits, the so-called excise taxes.

Features of payroll taxation

Until January 1, 2021, the tax burden for citizens of Uzbekistan was heavier. In addition to the personal income tax and contributions to an individual savings pension account, contributions to the off-budget Pension Fund were mandatory. There were also 4 types of tax rates: from zero to 22.5%. Today, the features of taxation of citizens’ income are as follows:

1. All income of individuals, tax residents of the Republic of Uzbekistan, is now taxed at a single rate - 12%.
2. Contributions to an individual pension savings account are 0.1%, which is calculated on the taxable amount of income.
3. Contributions to the off-budget Pension Fund have been canceled altogether.
4. The procedure for exempting certain categories of employees from the tax burden is maintained. The deduction is 4 times the minimum wage.

For comparison! What taxes are levied on wages in Russia.

Salary in Uzbekistan by city

The quality of life of the population in different cities of Uzbekistan varies greatly. Let's take a closer look at the average wage in the largest populated areas of the country.

Tashkent

The standard of living in the capital of Uzbekistan is significantly higher than in most other cities. Here, the average resident earns about $200 a month, but such income is quite enough to buy food, pay for travel and housing due to affordable prices. The population's expenses here are quite consistent with the population's earnings.

Andijan

The average salary for residents of this city is slightly less than in Tashkent - approximately $180. It would seem that this should be quite enough, but prices in Andijan for services, entertainment and food are much higher than in Tashkent, so residents barely fit into the specified amount.

Shavat

In Shavat, the average income of the population is slightly higher and amounts to $215. Food here is also a little more expensive. A kilogram of chicken fillet will cost about $4.6, the average cost of a loaf of bread is 69 cents. The region is characterized by fairly high housing costs. For 1 square meter of living space you will have to pay at least $680. Young people can rarely afford to buy their own home, which is why rental property is in great demand.

Samarkand

The average salary of Samarkand residents is $210. The main expenses go to food, which is far from cheap. However, the cost of housing in Samarkand is much lower than in many other large cities of Uzbekistan and is about $500-550.

Bukhara

As in Andijan, the average income rarely exceeds $180, and this despite the unrealistically high cost of food, accommodation and transport services, not to mention the fact that not every resident of the city can buy their own home.

Urgench

The lowest average salary in Uzbekistan is typical for the city of Urgench. Here this figure is at $123, which is much lower than other large settlements. At the same time, food and housing in the city are quite expensive, which is why residents have to save a lot.

Based on the income level of the above cities, we can say that although the average salary is not so bad, but in order to afford a little more luxury, you will have to work more than one job or try to advance to large corporations, which, fortunately, are abundant in such cities .

Which city in Uzbekistan is most developed for a good life?

As in any other country, there are cities that are more or less rich. Speaking about Uzbekistan, let's look at which city can be considered the most suitable for a good life, taking into account the income level of the largest cities in the country, including:

1. Tashkent is the capital of Uzbekistan. According to stereotypes, the cost of living in such a city should be quite high, but in reality prices in Tashkent are moderate, which allows city residents to meet the average salary, which is about $200 per month. 2. Andijan - the average salary for residents of this city is slightly less than in Tashkent - approximately 180 US dollars. It would seem that this should be quite enough, but prices in Andijan for services, entertainment and food are much higher than in Tashkent, so residents barely fit into the specified amount. 3. Shavat – the inhabitants of this city can boast of an average salary of up to $230, but everything is not as rosy as it seems at first glance. Just like in Andijan, wages are not enough to fully satisfy living needs, since prices for everything are quite high. 4. Samarkand – the average salary of Samarkand residents is 210 US dollars per month. The main expenses go to food, which is far from cheap. However, the cost of housing in Samarkand is much lower than in many other large cities of Uzbekistan and is about 500-550 dollars. 5. Bukhara - as in Andijan, the average income rarely exceeds $180, and this despite the unrealistically high cost of food, accommodation and transport services, not to mention the fact that not every resident of the city can buy their own housing.

Based on the income level of the above cities, we can say that although the average salary is not so bad, but in order to afford a little more luxury, you will have to work more than one job or try to advance to large corporations, which, fortunately, are abundant in such cities .

In conclusion, it is important to note that, like many other countries, Uzbekistan is at the stage of developing its own economy. With the economic situation, the minimum wage of the country’s residents will increase, and the standard of living will also improve.

All this will take a lot of time, but with the hard work of the state authorities, as well as the residents themselves, absolutely anything is possible.

Income by profession in 2020

In Uzbekistan, the highest paid specialties are:

• Marketer – from $65 to 900;
• Banker – from $113 to 1000;
• Accountant – from $80 to 1500;
• Insurer – from $60 to 800;
• IT specialist – from $60 to 1000;
• Lawyer – from $100 to 1500.

The profession of a web designer is also very famous in Uzbekistan. This is due to the emergence of a large number of sites, and due to the ability to work remotely from anywhere in the world. The demand for specialists in this field is growing. At the same time, working as a web designer, you can earn a salary of up to $1000.

The basic university for training lawyers in the state is Tashkent State Law University. It trains professionals in five areas. Lawyers, economists and logistics specialists can earn the highest income.

SMM stands for Social Media Marketing, that is, a specialist in promotion in social networks. The task of an SMM manager is to increase the audience that is interested in the client’s product or service. He also strengthens the client’s image, tries to reduce negativity, including fighting “black PR” on social networks. The salary of an SMM manager starts from $200.

HR manager or HR manager is a profession that is one of the most promising and in demand. Representatives of this profession are called upon to select the most capable workers, create a productive atmosphere in the company, increasing the value of the company. The salary of HR managers in Uzbekistan starts from $250.

The salary of sales managers directly depends on the number of goods and services sold. A sales manager must be able to conduct business, develop and regulate dealer relationships, interest the client, draw up contracts, and also maintain good relationships with customers after transactions are completed.

The lowest paid professions in Uzbekistan are teachers, doctors, and salesmen. Their salary rarely exceeds $100.

Only a qualified specialist with extensive work experience or someone who has opened his own company: a clinic, private school, etc. can earn more. The least competition is observed in the field of consulting, tourism and restaurants, medicine, that is, specialists in these areas are in short supply for employers due to limited choice applicants.

The country's authorities are aware that more than 70% of the population cannot provide even the most important needs.

In 2021, the average monthly salary in Uzbekistan amounted to 1.4 million soums

According to preliminary data from the Department of Demography and Labor Statistics of the State Statistics Committee, in January-December 2021, the average monthly nominal accrued wages in Uzbekistan amounted to 1 million 453.2 thousand soums (including wage supplements, remunerations, incentive payments, compensation payments and payment for unworked time, as well as income tax withheld from individuals, contributions to social insurance and to the trade union fund), and increased by 12.3% compared to the same period in 2021.

In the structure of types of economic activities, the highest average monthly nominal accrued wages were noted in financial and insurance activities - 2 million 694.1 thousand soums (85.4% higher than the national average), in the field of information and communications - 2 million 498, 5 thousand soums (by 71.9%), in industry - 2 million 91.7 thousand soums (by 43.9%), in transportation and storage - 1 million 945.8 thousand soums (by 33.9%), 9%) and in construction – 1 million 808.4 thousand soums (by 24.4%).

In terms of types of economic activities, the greatest growth compared to 2021 was observed in financial and insurance activities (25.9%), information and communications (22.3%), and accommodation and food services (13.3%).

By type of economic activity, the largest share of the number of employees and wage fund falls on:

- education sector - 982.1 thousand people work in 19,034 institutions (the share of the total number of workers in the republic is 38.1%), the wage fund accrued to these employees amounted to 13 trillion. 671.6 billion soums (share in the wage fund in the republic is 30.4%);

- industry - 479.6 thousand people (18.6%) work in 619 enterprises, the wage fund amounted to 12 trillion. 38.4 billion soums (26.7%);

- healthcare and social services - 420.4 thousand people (16.3%) work in 1,420 institutions, the wage fund amounted to 4 trillion. 948.2 billion soums (11%).

For reference: According to the Labor Code of the Republic of Uzbekistan, the monthly wage of an employee who has fulfilled the labor standards and labor duties fully determined for this period cannot be lower than the amount established by law for the first category of the Unified wage scale (in January-December 2021 it was 354.3 thousand soums).

If we consider the average monthly nominal accrued wages by region, then its highest level is observed in Tashkent - 1 million 986.5 thousand soums (accounting for 136.7% of the republican average), in Navoi region - 1 million 926.5 thousand soums (132.6%) and in the Tashkent region - 1 million 559.7 thousand soums (107.3%), and the lowest in the Namangan region - 1 million 140.5 thousand soums (78. 5%), Samarkand region 1 million 157.3 thousand soums (79.6%).

Government plans to increase wages

The authorities are aware that more than 70% of the population suffers from a low standard of living and the inability to provide even the most basic needs. In 2021, a law came into force to increase citizens’ wages by 7% of the established amount.

Pensioners and the unemployed were not left out. Elderly Uzbeks will receive assistance from the state in the amount of $43 every month, and university graduates can count on financial support in the amount of $26 when looking for work.

The standard of living of the Republic of Uzbekistan leaves much to be desired. Purposeful residents of the country are forced to leave their homeland in search of decent work and high wages. Uzbeks who run private farms replenish the family budget with profits received from trading in markets.

The male population gets out of a difficult situation by working as taxi drivers or going to other countries for seasonal work. From this it follows that Uzbekistan is a country suitable for tourism, but not for improving its financial condition. You can get a job immediately in a high-paying position here only if you have a recommendation or as a result of a transfer from a foreign company with the right to maintain your previous salary.

Average salary in Uzbekistan for 2021

The state is taking various measures to support the population, in particular, increasing the minimum subsistence level, and also reducing the tax burden on citizens. However, wages are still very low.

From January 2021, the minimum wage was increased to 202.7 thousand soums per month, which is 1.6 thousand rubles. This amount affects social benefits, including pensions and scholarships. In addition, when calculating wages, various coefficients are taken into account, taking into account which the minimum wage in the Republic will be 4.6 thousand rubles. or 577 thousand soums.

See also: How to find work in China for Russians

The average salary in Uzbekistan in 2021, according to the State Statistics Committee of the Republic, increased by almost 25%, averaging 14.4 thousand rubles. or 1.8 million soums (218 US dollars).

Reference! Citizens of the country massively report that official statistics are inflated, income on average is about 6.4 thousand rubles. or 809 thousand soums (100 US dollars).

According to the State Statistics Committee of Uzbekistan, the above data refers to the nominal accrued average wage. They include various types of allowances, including incentive and compensatory ones, as well as withheld taxes and contributions to the social insurance fund.

For convenience, the following rate established by the Central Bank of the Russian Federation was used in calculations: 1 Uzbek soum = 0.0079 rubles (as of March 10, 2021).

Below is a short video fragment dedicated to the official statistics of the Republic of Uzbekistan as of mid-2018.