From January 1, 2027, Kazakhstan's minimum wage will increase from 85,000 to 110,000 tenge. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
This change will affect not only wages but also the size of a number of social payments. Sputnik Kazakhstan examined which payments will change when the minimum wage rises.
Increased 6,500-fold over 33 years
In Kazakhstan, the minimum wage as a baseline indicator was first introduced in 1993. Later, this indicator changed depending on the population's living standards and inflation. Thus, over 33 years, the minimum wage increased 6,500-fold and reached 85,000 tenge.
By law, employers are obliged to pay employees no less than the minimum wage. In addition, this indicator is used in calculating a number of social payments.
Whose wages will increase
According to the President's instruction, from January 1, 2027, the minimum wage will be raised to 110,000 tenge. "This will help increase the incomes of 1.8 million people, including more than 370,000 employees receiving salaries from the budget," said Kassym-Jomart Tokayev in this year's address. Employers must also not pay employees less than the minimum wage established by law.
Social payments will also change
The State Social Insurance Fund provides social payments to working citizens in certain cases. These include:
- 01payment for childcare until the child reaches one and a half years old;
- 02payment for loss of ability to work;
- 03payment for pregnancy and childbirth, adoption of a newborn child;
- 04payment for loss of breadwinner;
- 05payment for loss of job.
The size of these payments depends on the citizen's income and the calculation procedure established by law. When calculating some payments, limit indicators based on the minimum wage are applied.
Pregnancy and childbirth payment will increase
The one-time social payment for pregnancy and childbirth is calculated based on the average monthly income over the last 12 months. The monthly income taken into account must not exceed seven minimum wages.
Current limit: 85,000 × 7 = 595,000 tenge. 2027 limit: 110,000 × 7 = 770,000 tenge. Then the average monthly income is multiplied by a coefficient of 4.2.
Thus, based on the maximum limit of income taken into account, the estimated amount of the one-time payment for pregnancy and childbirth is 2,499,000 tenge this year (595,000 × 4.2), and in 2027 it will reach 3,234,000 tenge (770,000 × 4.2). These are the maximum amounts used for calculation. The actual payment depends on the citizen's income and other calculation conditions.
Childcare payment will increase
The monthly social payment for childcare is calculated at 40% of the average monthly income over the last two years. At the same time, the average monthly income taken into account must not exceed seven minimum wages.
Thus, currently the maximum limit of income considered when calculating the payment is 595,000 tenge, and the maximum estimated monthly payment is 238,000 tenge. In 2027, this limit will increase to 770,000 tenge, and the maximum estimated monthly payment will reach 308,000 tenge.
Note that from 2027, women will be able to return to work while continuing to receive childcare payments from the State Social Insurance Fund. However, men on childcare leave do not receive such social payments from the fund.
Payment for citizens who have lost their jobs
The social payment for loss of job is also calculated based on the average monthly income over the last 24 months. The payment amount can reach up to 45% of income. The limit of average income taken into account does not exceed seven minimum wages.
Accordingly:
- 01current maximum estimated amount: 595,000 × 45% = 267,750 tenge;
- 02maximum estimated amount in 2027: 770,000 × 45% = 346,500 tenge.
Mandatory pension contributions are deducted from social payments made by the State Social Insurance Fund.
Terms of unemployment benefits will change
From 2027, changes are planned to the terms of payment of social benefits for loss of job. The payment period is set depending on the duration of social contributions:
- 01if contributions were made from 6 to 12 months – 1 month;
- 02if from 12 to 24 months – 2 months;
- 03if more than 24 months – 3 months.
Support measures such as offering vacancies, free retraining, and placement in subsidized jobs are also envisaged for citizens left without work.
Mandatory contribution amounts will also increase
Today in Kazakhstan, 10% is deducted from wages as mandatory pension contributions and 2% for mandatory social health insurance. When the minimum wage rises from 85,000 to 110,000 tenge, the amount of contributions calculated based on this indicator will also increase. Although individual income tax is calculated at a rate of 10%, due to tax deductions, the minimum wage is not taxed.