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Take a gander at this:
Buddy, listen up! A smart cookie named Olzhas Khudaibergenov, an economist, has been chatty about the Kazakhstan government mulling over implementing extra pension contributions. Apparently, these additional contributions could be a whopping 5% deducted from employers, as per Total.kz.
Back in August-September 2019, there was a hefty hullabaloo against this 5% pension contribution due to the already high tax burden on businesses (around 35%). This norm is enshrined in the law, but, cool as a cucumber, the president delayed it until 2023 and delegated a task force to revamp the pension system and invent a smarter alternative to bypass this 5%. And, wouldn't you know it, the Ministry of Labor, National Bank, EPF, and other folks are now floating the idea of introducing these 5% to the president.
According to the expert, the concept for this norm is being ironed out in government agencies and NPP.
Now, it's just bananas that these folks don't get the sitch in the business world which is, I gotta say, more screwed up than before the pandemic. They seem to have no clue about the political context, and by suggesting this 5% contribution, they're basically flipping the bird to the president's instructions by proposing something he rejected two years ago.
Now, here's the thing - up until April 2025, there ain't no direct mention of a proposed 5% employer pension contribution in Kazakhstan. The law presently demands a mandatory 10% employer contribution, with a further 10% from employees, as per the latest payroll compliance guidelines. The absence of this 5% rate in recent materials might mean one of two things:
- No active proposal exists for reducing contributions to 5% (and any opposition is hypothetical in this case)
- Ongoing reforms aren't yet reflected in international reports, though the latest communications from the National Bank mainly focus on monetary policy (16.5% base rate) and inflation (10% annual rate) rather than pension adjustments.
A hypothetical rationale for opposition (in case such a proposal exists) might involve employer cost concerns, pension system sustainability, and regulatory complexity. So, there's that.
To get the real lowdown on pension contribution policies in Kazakhstan, you'd need to chat with the National Bank (contact: [email protected]) or the labor ministry. The IMF's April 2025 Fiscal Monitor doesn't cover Kazakhstan's pension reforms specifically.
- Economist Olzhas Khudaibergenov discusses the Kazakhstan government considering a proposal to increase pension contributions by 5%.
- The additional contributions, if implemented, would be deducted from employers, amounting to a possible 5%.
- In 2019, there was opposition to this 5% pension contribution due to the high tax burden on businesses, but the president delayed its implementation until 2023.
- Currently, the law requires a mandatory 10% employer contribution and a further 10% from employees, and there's no mention of a 5% contribution up until April 2025.
- The absence of the 5% rate in recent materials might mean that no active proposal exists or that ongoing reforms are not yet reflected in international reports.
