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Speech by the Minister of Labor and Social Protection of the population Duysenova T.K. at CCS briefing from 15 of July 2014

Dear colleagues!


       1. Modernization of personnel preparation and retraining system


        The implemented industrially - innovative program provides not only the introduction of new technology, but also requires the formation of a new labor generation. In this regard, within the framework of the personnel training and retraining system modernization we implement the Employment Roadmap 2020 and introduce a new national system of qualifications.

         As you know, the purpose of Employment Roadmap 2020 program is engaging self-employed, the unemployed and the able-bodied citizens in productive employment on the basis of their training, granting the micro credits, voluntary resettlement and subsequent employment.

        Since the beginning of Program implementation more than 375 thousand citizens became its participants. 59 thousands received the state support within 6 months of this year, 61.2% of which are employed on permanent and temporary jobs.

           In the current year 98 billion tenge will be directed on the implementation of the program.

The introduction of a national system of qualifications is the next component of this direction.

            Firstly, it provides the development of professional standards which will become standard business requirements for particular occupations. Professional standard is a kind of specification for business requirements for training and will be the basis for developing and updating educational programs and methodical base.

          Secondly, it is the improving of occupations (jobs) system classification with taking into account the current state of the labor market. New classifier is developed on the basis of studies of the German approach and it become a common language for business and educational system

          Thirdly, identifying and forecasting staffing requirements system in the context of specific occupations will be developed. Educational order will be formed from the real needs of the market.

          Fourth, the criteria and requirements of professional standards allow an independent assessment and assignment of qualifications together with enterprises.

          About 900 professional standards for all areas of industries will be developed until 2020. 257 professional standards were designed last year, 128 have been planned for this year, and the following year professional standards will be developed according to most demanded occupations directly by SPAIID (State program of accelerated industrial-innovative development of the Republic of Kazakhstan).

          The following direction is a new model of the remuneration system of civil servants which will be implemented on 1 July 2015.

           Innovations of the first stage of the model are

  1.  Implementation of the new Registry of civil servants. The head and the main worker, and specialists that perform administrative functions (eg, category G4: Head of state institutions; PSC specialist and advisor of the Rector) are allocated in the same category of posts in the current wage system. They all receive the same salary for the same length of service which leads to a leveling and reduction of motivation.   

The new model involves the separation of civil service positions according to the education, skills, complexity and responsibility of work performed in four categories: management, basic, administrative and economic, technical staff;

           2. The introduction of a special coefficients grid for the calculation of official salary. The table of coefficients in the current system is the same for all areas and positions of employees and does not consider industry-specific features. The new model provides special coefficients grid for each functional block: "health", "education", "other sectors", based on the required qualifications and work experience;

           3. Optimization of additional payments and bonuses for working conditions. The presence of a large number (155) of additional payments and bonuses to the salaries of civil servants led to the deformation of the structure of wages and reduce the value of its core. The share of co-payments can be up to 70% of salary.

          Bonuses and allowances would be divided into 2 types in the new model: compensating (e.g., for the harm, the additional load, etc.) and stimulating (for the quality of work, the result etc.). Optimizing of system of surcharges and bonuses for working conditions will strengthen the dependence of wages on the quality and performance. 

        Instructions of the President to raise the wages of employees of government agencies and state-owned enterprises - in health care - up to 28%, education - up to 29% in other areas - up to 40% will be implemented as a part of the reform aimed at overcoming the salaries in private sector and the economy as a whole.

          The introduction of a new model of wages for civil servants will restore the value of the basic salary, providing its dependence on the final results of the activity and will encourage career and professional development of civil servants.

                   The purpose of the pension system modernization concept is to increase the pensions of citizens. The distribution of responsibility for pension provision of citizens among the employees themselves, employers and the state is provided for these purposes.

           Thus, workers will make the transfer of 10% of MPC (mandatory pension contributions) wage NAPF (Nationwide Accumulative Pension Fund).

            Employers will transfer 5% of payroll to employees. This system will be notional and provide both the accumulative and the solidarity principle. Accumulative principle is when the account is opened in NAPF, savings are invested and solidarity is when the pension is paid for life.          

         The state will pay the basic pension in accordance with work experience or length of participation in the pension system. Thus, we are moving away from "egalitarianism" in the basic pension appointment.

          Individuals with work experience of 10 years, 20 years - 70% 35 - 100% will get 50% of the subsistence minimum in accordance with the current amendments.

          2 millions pensioners are expected to receive the recalculated basic pension by July 1, 2017  and an additional requirement for the year will amount to 275 billion tenge.

                  6. Changing the ideology of social assistance is the last direction of work

It involves the introduction of conditional social assistance for low-income families who have employable family members. Conditionality is as follows - able-bodied member of the family takes a responsibility to pass adaptation services or participate in active measures to promote employment and IOI undertake to pay their HSA for up to 60% of the subsistence minimum for each family member. 

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