Pensions, allowances rise in Kazakhstan
As a reminder, on June 20, Head of State Nursultan Nazarbayev signed the Law of Kazakhstan "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Social Security Issues", drafted by the Ministry of Labor and Social Protection of Population in the furtherance of the President's Address to the Nation of Kazakhstan dd. January 31, 2017 "The 3rd Modernization of Kazakhstan: Global Competitiveness".
The above draft law comprises:
- 20pct increase of pension over the level of 2016 since July 1, 2017
- 20pct increase of one-time maternity aid since July 1, 2017
- changing the specified time for beginning of the employer's 5pct mandatory pension contributions from 2018 to 2020.
The solidarity pensions have increased by 11 percent, taking into account 9pct increase at the beginning of the year. The amount of the basic pension has risen by 13pct, taking into account the 7pct increase since January this year. Thus, since July 1, 2017, the pensions have been increased by 20 percent as compared to 2016. This increase is applicable for all pensioners, or over 2 million people.
In particular, as of January 1, 2017 the minimum pension (including the basic pension) was 40,950 tenge, whereas since July 1, 2017 it has increased up to 45,711 tenge. The average pension (including the basic one) will rise from KZT60,167 (as of January 1, 2017) up to KZT66,676 since July 1, 2017.
One-time state maternity aid increased by 7pct on January 1, 2017, and it has increased by another 20pct since July 1, 2017. As a result, the growth in 2017 will be 27 percent as compared to 2016.
In 2016, the amount of state benefit for one, two and three newborns was KZT66,621, while on January 1, 2017, it was 71,270 tenge. Now, since July 1, it will increase to 86,222 tenge. The state benefit amount for birth of four or more children last year was KZT111,035; on January 1, 2017 it rose to KZT118,783, and since July 1, 2017 it has reached KZT142,947.