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Employees in Uzbekistan to be Rewarded with Company Shares

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.

World Bank: Uzbekistan Must Tackle Gender Inequality

The World Bank Uzbekistan has published a new “Country Gender Assessment Report: Uzbekistan” on gender assessment in the country. This report (CGA) was produced with financial support from Great Britain. This report examines gender equality in Uzbekistan in various areas such as education, health, economic activity, protection from gender-based violence, marriage, divorce, and participation in public life. CGA examines social norms, assessing cultural attitudes and practices that affect women’s rights and understandings in Uzbek society. The report makes recommendations to close the gender gap and promote inclusive prosperity. CGA notes that since 2017, significant progress has been made in terms of gender equality in Uzbekistan. Notable achievements include the 2022 Labor Code, which provides for equal pay for women and removes job restrictions. In addition, 2023 amendments to the Criminal Code criminalize domestic violence. Consequently, the “Women, business and Rights” index released annually by the World Bank recognized Uzbekistan as one of the top five countries in terms of gender equality in 2024. Women’s access to education and health services has improved significantly. For example, during the period 2017-2022, the number of admissions to higher education institutions increased significantly, the number of men increased by three times to 29%, and the number of women increased by four times – to 27.4%. Young women face higher unemployment rates than males (15.5% vs 10%), and the share of young women who were not in employment, education, or training (NEET) has reached 42%, compared to 8.8% for males. In addition, the gender pay gap is significant, with women earning 34% less than men, which is more than the global average of 20%. Women’s low wages and employment rates directly hinder economic growth and exacerbate poverty in Uzbekistan. If women participated in the country’s economy on an equal basis with men, the national income in Uzbekistan would increase by 29%. Simply equalizing men’s and women's wages would lift more than 700,000 people out of poverty. However, gender norms, which place women primarily in charge of caregiving and household tasks, hinder progress towards gender equality and inclusive economic growth. The report states that the authorities must address gender inequality to realize Uzbekistan’s full economic potential. These include entrenched social norms that limit women’s economic participation, disparities in access to higher education in STEM fields, health care limitations, deteriorating family planning options, incomplete protection from gender-based violence, and the disparity of women in leadership roles.

Uzbekistan to Open Centres for Workers Seeking Employment Abroad

The Uzbek government is to open 27 educational institutions across the country for the purpose of training potential migrants in professions in demand by foreign employers. Students will also have access to lessons in various languages including English, German, Japanese, Korean and Arabic. Courses will be offered on a paid-contract basis for a year. Attendees with existing proficiency in languages spoken in countries of their choice, will be eligible for a 50% reimbursement by the state of costs incurred in attaining related certificates. Teachers at the centres will receive a 100% salary supplement. The government of Uzbekistan had earlier announced measures to support citizens seeking employment abroad and from June this year, migrant workers will be offered compensation for passing the qualification exam, obtaining a work visa in a foreign country, travel costs and insurance. In addition to training programmes to open up opportunities in better-paid and professional jobs outside Uzbekistan, the government has now confirmed further subsidies for legal and material assistance. According to the Uzbek Agency for External Labour Migration, some 70,000 citizens have legally secured work abroad over the past two years and Germany, Great Britain and Japan have recently shown great interest in employing Uzbek migrants. Remittances from labour migrants to Uzbekistan remain a material part of the country's gross domestic product (GDP) -- accounting for 17.8% in 2023. In neighbouring Tajikistan, migrant remittances account for almost half of the country's economic output, and in Kyrgyzstan, 20%.

Tajikistan: Remittances from labor migrants exceed foreign investments

DUSHANBE (TCA) — Tajikistan’s labor migrants abroad send home much more money than direct foreign investments coming to Tajikistan, Avesta news agency reported. According to Tajik government sources, in 2013-2019 the economy of Tajikistan received a little more than US $3 billion of direct foreign investment. In November, Jamshed Nurmakhmadzoda, chairman of the National Bank of Tajikistan, said that in January-September 2019, Tajik labor migrants abroad sent home $2.490 billion, a 7-percent increase on-year. Experts say that the main source of living of hundreds of thousands of Tajik families is money sent home by their family members working abroad. Most Tajik labor migrants work in Russia. It was earlier reported that over the past five years (2013-2018), Tajik labor migrants sent home via bank transfers more than $15 billion, which manifold exceeds the amount of direct foreign investments during the period. Avesta earlier reported that the amount of money sent home by Tajik labor migrants from Russia in January-September of this year exceeded Tajikistan’s annual budget. It was also reported that remittances from labor migrants abroad account for more than 75 percent of all income of Tajikistan’s population.

Remittances from labor migrants in Russia exceed Tajikistan’s annual budget

DUSHANBE (TCA) — The amount of money sent home by Tajik labor migrants from Russia in January-September of this year exceeded Tajikistan’s annual budget, Avesta news agency reported. During the first nine months of this year, Tajik labor immigrants in Russia sent home US $2.49 billion, a 7-percent growth on-year. According to Tajikistan’s Finance Ministry, the country’s state budget in January-November 2019 amounted to 20.568 billion somoni or more than US $2.1 billion according to the official exchange rate of the Tajik National Bank. The total state budget of Tajikistan for 2019 from all sources of financing is 23.7 billion somoni or more than US $2.448 billion. That means that during the first three quarters of this year, Tajiks working in Russia sent home the amount exceeding their home country’s annual budget. It was earlier reported that remittances from labor migrants abroad account for more than 75 percent of all income of Tajikistan’s population.

Kyrgyzstan parliament urged to reject amendments to trade union law that threaten workers’ rights

BISHKEK (TCA) — Human Rights Watch said on October 31 that draft amendments to Kyrgyzstan’s trade union law would severely inhibit independent trade union organizing and violate international labor treaties to which Kyrgyzstan is a party. Parliament should reject the amendments when they are presented for a third reading, the rights watchdog said in a statement. Continue reading