Payment of salary to a third party: legal aspects for the employer - FCHAIN

Why the issue of transferring salary to a third party matters

In the practice of Kazakhstani employers, situations are quite common where an employee asks to transfer his or her salary not to a personal bank account, but to the account of a spouse, relative or another third party. At first glance, this looks like a simple everyday request that is not associated with serious risks. However, in fact, this approach affects the provisions of civil, labour and enforcement legislation and, if not properly documented, may lead to claims from supervisory authorities or from the employee. At the same time, employees often approach the employer with a request to provide a loan or an interest-free monetary loan. This raises a number of questions: whether the employer is obliged to satisfy such requests, how to properly formalise the relationship and what limitations must be taken into account in order to remain within the law.

Legal basis for transferring salary to a third party

From the perspective of civil legislation, an employee has the right to instruct another person to receive the amounts of money due to him or her. This is possible by issuing a power of attorney in which the employee explicitly authorises the third party to receive salary and other payments. Accordingly, transferring salary to the account of a third party is permissible if the will of the employee is clearly expressed and documented. It is important to understand that by default the employer is obliged to pay salary directly to the employee and not to other persons. Transferring funds to a third party without proper documentation may be regarded as improper fulfilment of the employer’s obligation to pay salary. In the event of a dispute, the employee may claim that he or she did not actually receive the money, and the employer will then have to prove the opposite.

Which documents the employer should arrange

To minimise risks and record the arrangements in a clear form, it is advisable for the employer to put in place several key documents. First, it is recommended to obtain a written application from the employee with a request to transfer his or her salary to a specific bank account. The application should indicate the account details, information about the recipient and confirmation that the employee understands the consequences of such a decision. Second, a power of attorney is required in which the third party is authorised to receive salary and other amounts due to the employee. In practice, the safest option is a notarised power of attorney, as it significantly reduces the risk of subsequent disputes over the validity of the authority. A copy of such a power of attorney should be kept together with the employee’s HR documents. Third, an addendum to the employment contract may be concluded, setting out the procedure for transferring salary, the account details of the third party and the obligation of the employee to promptly notify the employer of any changes in this information. Such an addendum is not strictly mandatory, but serves as additional protection for both parties.

Enforcement documents and deductions from salary

A situation in which enforcement proceedings have been initiated against an employee and a bailiff’s order has been received to levy execution on salary and other income is of particular importance. In this case, the employer is obliged to make deductions in favour of the creditor regardless of the account to which the remaining part of the salary is transferred. The amount of deductions is determined by the enforcement document, while a general limitation of labour legislation on the maximum share of deductions from salary applies. As a rule, the total amount of deductions under all enforcement documents and other grounds may not exceed half of the employee’s salary. The employer must comply with this limit, transfer the deducted amounts in a timely manner and inform the bailiff when the employment relationship with the employee is terminated. It is important to emphasise that transferring salary to a third party’s account does not release the employer from the obligation to comply with bailiff’s orders. Mandatory deductions are made first, and only then the remaining part of the salary is transferred in accordance with the employee’s application and the documents issued.

Providing a loan to an employee

Another common issue is related to employees’ requests for a loan or an interest-free loan. Civil legislation allows for the conclusion of a loan agreement between an organisation and an employee, including on an interest-free basis. At the same time, the law does not impose an obligation on the employer to grant such loans to every applicant. The decision to provide a loan remains a right, not an obligation, of the employer. The company may provide for the possibility of granting loans in its internal documents, define the procedure for reviewing applications, approval criteria and limits on amounts. If the decision is positive, a written loan agreement is concluded, setting out the amount, term, repayment procedure and, if necessary, the possibility of repayment by deductions from salary on the basis of a separate written consent of the employee. If the employer is not ready to provide loans due to financial or other reasons, it may lawfully refuse the employee, referring to internal rules or the absence of such a practice in the company.

Earlier, we wrote about the new rules for paying PIT and social contributions starting from 2026 — you can read more here New Rules for Payment of PIT and Social Contributions Starting from 2026

How FChain can help the employer

FChain lawyers help employers build a safe and convenient practice of transferring salary and working with loans to employees in compliance with the legislation of the Republic of Kazakhstan.

FChain can:

• prepare and adapt templates of applications, powers of attorney, addenda to employment contracts and loan agreements
• review your existing HR and payroll procedures for compliance with labour and enforcement legislation
• provide targeted recommendations on contentious or non-standard situations involving payments and deductions from salary

For professional support, please contact us at almaty@f-chain.com or via WhatsApp at +7 771 214 1820

 

Prepared by: Sergey Gaydarov
Senior Lawyer, FChain Kazakhstan
November 11, 2025