Uzbekistan is to introduce an initiative to reward employees with shares in companies, under a regulation developed by The National Agency for Perspective Projects (NAPP).
According to the NAPP, the transfer of shares to employees, as part of additional incentive programs, including bonuses, will help increase employee interest in the company’s sustainable development and improve labor relations.
The main goal of the initiative, modelled on ESOP (Employee Stock Ownership Plan) successfully applied in other countries, is to improve the population’s welfare and develop the domestic capital market.
Although joining in the Stock Ownership Plan will be voluntary, its development will be mandatory for joint stock companies with more than 50% state participation.
The presidential decree on capital market development, issued in September 2023, envisioned the implementation of ESOP. Funds of up to one month’s salary used to purchase shares will not be subject to personal income tax.
