The Ministry of Labour and Social Protection of the Population of the Republic of Kazakhstan is considering a number of initiatives aimed at further improving the pension system. A working group comprising representatives of government agencies, experts, and non-governmental organisations has been established to discuss possible changes.
All proposals are currently under consideration. Final decisions regarding further pension system reforms will be made following a comprehensive review, including an assessment of financial sustainability, social effectiveness, and potential implications for citizens.
Among the initiatives being discussed are:
- Introduction of a social pension benefit, the amount of which would depend on an individual’s average monthly income relative to the median wage, as well as the length of their employment history. The proposed model is intended to strengthen solidarity principles and improve the predictability of pension payments.
- Changes to the structure of employer pension contributions. It is proposed that 4% of contributions be allocated to an individual’s pension account and 1% to a solidarity (insurance) component. This approach is expected to support more sustainable pension payments in the long term.
- Establishing a mandatory 40-year employment record as one of the conditions for retirement. For public sector employees who exceed this threshold, a more flexible retirement timeline is being considered.
At the same time, Kazakhstan has already implemented a number of measures aimed at improving pension provision:
- Effective January 1, 2026, basic and solidarity pensions were increased by 10%.
- The maximum basic pension has been increased from 110% to 118% of the subsistence minimum, with a further increase to 120% planned for 2027.
- The gradual increase in employer mandatory pension contributions (EMPC) continues. In 2026, the contribution rate is 3.5% of an employee’s income and is expected to reach 5% by 2028.
Source: Uchet.kz
