Uzbekistan earmarks over UZS 3 trillion for maternity and sick leave in 2026

The new system came into force on 1 January 2026 and now covers not only public-sector workers but also employees in the private sector. Under the reform, maternity benefits for women employed in the private sector are paid through the State Social Insurance Fund from January, while payments for temporary disability (sick leave) for all formally employed workers will be introduced from 1 July.

According to the state budget, UZS 2.49 trillion have been earmarked for maternity benefits and UZS 864.4 billion for sick-leave payments. The funds will be disbursed through the Social Protection Fund under the National Agency for Social Protection.

Speaking during a Senate session on 18 December while discussing the budget law, Senator Malika Kodirhanova said that 54.7% of total budget expenditures in 2026 would be directed to the social sector, including maternity benefits for women working in the private sector. She noted that initial steps toward expanding such support were taken in 2022, when UZS 300 billion were allocated, though only UZS 40 billion were ultimately disbursed in 2025 due to underutilization.

Informal employment remains a key challenge

Kodirhanova drew attention to the persistence of informal employment, particularly among women in the private sector. She said that during regional visits, senators frequently encounter cases where women receive wages “in envelopes,” especially in the garment, textile, and services sectors.

Despite the birth of around one million children annually, access to social benefits remains limited, she said. In practice, only about 10% of pregnant women working in the private sector have used the available benefits, even though the system has operated in a proactive, automated format for the past two years.

The senator also highlighted the scale of the shadow economy, which accounted for 33.3% of GDP over the first nine months of the year, rising to as much as 50% in Surkhandarya, Kashkadarya, Khorezm, and Namangan regions. Without tackling informal employment, she warned, the new system would not function effectively.

Employers relieved of financial burden

Deputy Director of the National Agency for Social Protection Jamshid Abruev said a detailed analysis showed that employers’ reluctance to bear additional costs had been the main reason maternity benefits were often not paid. Many employers argued that such payments increased production costs and undermined competitiveness.

Low awareness also played a role, he added, noting that both medical staff and employers often believed maternity and sick-leave benefits applied only to public-sector workers. Of the 3.2 million officially employed women in Uzbekistan, around 1.8 million work in the private sector, yet only about 15,000 received maternity benefits. By contrast, 118,000 women in the public sector, nearly 10%, received such payments.

Abruev said the law “On State Social Insurance” is expected to change the situation by removing the financial burden from employers, freeing up around UZS 2 trillion annually. No additional contributions will be introduced, as payments will be financed through existing taxes and budget transfers. All benefits will be processed automatically through integrated information systems starting from 1 January.

Enforcement, automation, and formalization

Deputy Minister of Employment and Poverty Reduction Sirojiddin Bobokulov said that 17,538 inspections were conducted during preparations for the reform, uncovering 7,800 violations related to women’s labor rights. As a result, the rights of 1,275 women were restored, and more than UZS 7 billion in wage arrears were recovered.

He also announced amendments to the Labor Code under ILO Convention No. 190, including up to 10 days of additional paid leave for women affected by pressure or violence. In 2026, authorities plan to implement measures to legalize informal employment, including vocational training for 15,000 women under World Bank and UNDP programs, alongside subsidies, grants, and loans to support entrepreneurship.

How the system will work

Maternity and sick-leave benefits will be administered through the “Social Insurance” module of the Unified Register of Social Protection. The system will automatically collect data, determine eligibility, calculate benefit amounts, and process payments.

Eligibility depends on the payment of insurance contributions; formal work experience without contributions will not be counted. The State Social Insurance Fund, operating under the National Agency for Social Protection, will accumulate contributions and make payments.

Under the new rules, employers will pay for the first five days of sick leave each calendar year, with the fund covering payments from the sixth day onward. Maternity benefits will be paid entirely by the fund. Payments will be transferred to beneficiaries’ bank cards via a commercial bank acting as the fund’s financial agent.

From 1 January 2026, employers are also required to register all employment-related data in the Unified National Labor System, while maternity benefits are fully removed from employers’ direct responsibility.