The new rules for pension deductions were clarified at the Ministry of Labour and Social Protection of the Population of Kazakhstan, Kazpravda.kz reports.
"We received a lot of questions regarding the introduction of compulsory pension contributions by employers. Therefore, I want to tell you how the introduction of compulsory pension contributions by employers will tell on Kazakhstan’s pensions," Kanat Kulshmanov, press secretary of the Ministry of Labour and Social Security, wrote on Facebook.
He said that from January 1, 2020 compulsory pension contributions (CPC) in the amount of 5 percent were introduced in favour of the employee at the expense of the employer. These regulations were adopted by the Law of the Republic of Kazakhstan dated August 2, 2015 on Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Pensions.
The purpose of the introduction of pension contributions by the employer is to improve the welfare of Kazakhstanis, to ensure a decent pension, corresponding to the service length.
The employee’s individual retirement account will be paid monthly at 15 percent of the salary: 10 percent compulsory pension contributions of the employee, 5 percent pension contributions at the expense of the employer's own funds.
The innovation applies to all working citizens, including individual entrepreneurs and individuals engaged in private practice.
CPC do not apply to persons performing work and services on the basis of civil law contracts, individuals of retirement age, military and security forces, recipients of pension payments for years of service, retired judges on monthly lifelong maintenance.
Pension contributions from employers cannot be considered property of individuals and are not inherited. These funds will be in the UAPF assets and redistributed between pensioners.
"Innovation should not be a reason for reducing wages, since working conditions and wages are stipulated in the labour contract. According to the Labor Code of the Republic of Kazakhstan, any changes to the labor contract can be made only by mutual consent of the employee and the employer," said Kulshmanov.
If labour rights are breached, the employee can apply to the labor inspectorate at his place of work or to the Committee for Labor, Social Protection and Migration on phone: 74-34-91, 74-35-72 (Labor Relations Department).
The draft Rules are posted on the website of the Ministry.
There are about 2.2 million pensioners in Kazakhstan. The average pension as of July 1, 2019 is 85,697 tenge, including the base one of 26,978 tenge, and the joint pension of 58,719 tenge.
Reported by the Kazakhstanskaya Pravda.
