Increasing the minimum pension from 54 to 70 percent, reducing participation from 10 to five years, and removing the maximum limit on the amount of a pension from one subsistence wage with 33 years of work and above - Kazakh Ministry of Labor and Social Protection of the Population is developing a new mechanism for the country’s pension system. The introduction of mandatory employer pension contributions from 2023 at the rate of 5 percent of the employee’s salary, the introduction of individual target accounts in the United Accumulative Pension Fund with their subsequent replenishment with part of the savings, as well as compulsory contributions from employers with entitlement to use them for social purposes are among the key areas, the ministry’s press service reported.
“I think that most of the population will take this news positively. From an economic point of view, there may be some questions, because it is an additional burden on the budget and the pension fund,” said one of Kazakh citizens.
“I think that’s very nice. Of course, we’d love to see the pension increase,” shared a resident.
“The minimum pension will rise. Thank you for this opportunity. We’ll be happy if the pension increases,” added another resident.
“On one hand, of course, it may be difficult for employers. On the other hand, it’s great news for those who work for them,” added another person.
The rules for the payment of special state benefits will also be changed. The plan for the further modernization of the national pension system until 2030 is coordinated with interested government bodies.
Translation by Assem Zhanmukhanova
Editing by Galiya Khassenkhanova
