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Report of the Minister of LSPP of RK at the Governmental hour in the Senate of the Parliament of RK on theme: "On the execution of instructions given by the President of RK Nazarbayev N.A. at the XVIII Congress of "Nur Otan" party on social protection

Dear Kassym-Jomart Kemeluly!

Dear deputies!

Head of state in his speech at the XVIII Congress of "Nur Otan" party noted that the main priority is to ensure a decent standard of living of citizens and the development of Kazakhstan as a socially oriented state.

In accordance with the directions of social policy outlined by the President, the Ministry of labour has focused on the implementation of New social initiatives in the first direction - increasing incomes and support low-income segment of the population.  

First, an increase in the wages of low-paid budget sector workers

In accordance with the instruction of the Head of state, from July 1, 2019, the wages of individual employees of the budget sector will be increased to 30%.

This will directly affect more than 1 million civil servants engaged in health care, education, social protection, culture, sports, agriculture and others.

Wages of these employees will be increased differentially by increasing the coefficients of the length of service for the calculation of the official salary.

115.7 billion KZT for 2019, 234.4 billion KZT for 2020-2021 annually will be provided to finance the increase of their wages in the republican budget.  

Salary increase up to 30% will be received by: workers

from 1 to 8 categories, support (technical), administrative and substantive staff.

For example,

In the sphere of education:

– the average salary of teachers of secondary schools is 79 088 KZT after the increase - 96 488 KZT;

– the average salary of an educator is

68 912 KZT after increase - 88 207 KZT;

 In the sphere of health care:

– the average salary of a doctor of PHC, EMC, Oncology is 108 908 KZT after the increase - 141 580 KZT;

– the average salary of nurses of PHC, EMC, Oncology is 76 398 KZT after the increase - 99 318 KZT;

In social sphere:

– the average salary of a social worker is 71 301 KZT after the increase - 92 692 KZT;

Other spheres:

– the average salary of a psychologist, speech therapist, defectologist of MSI is 59 232 KZT after the increase of 75 817 KZT.

– the average salary of the artist is 87 458 KZT after the increase of 110 197 KZT.

– the average salary of the librarian is 77 088 KZT after the increase of 96 360 KZT.

Administrative staff:

– the average salary of an accountant is 65 992 KZT after the increase of 82 490 KZT;

– the average salary statistics is 59 374 KZT after the increase of 71 248 KZT.

Technical staff and workers:

– the average salary of clerk, secretary is 52 366 KZT after - 62 839 KZT;

Second, support for low-income families

As you know, to support low-income families

since January 1, 2018, address social assistance of the new format has been provided in the regions.

A family whose income for each family member does not exceed the criterion of providing address social assistance - 50% of the subsistence minimum is considered to be low-income.

Address social assistance includes a set of measures:

firstly, the cash payment, which is assigned in a conditional and unconditional form;

secondly, measures to promote employment, that is, the direction to training, youth practice, social jobs, issuance of microcredit, employment;

thirdly, the guaranteed volume of social services.

In 2018, 571 thousand people or 111 thousand families became recipients of the ASA. All employable ASA recipients are provided with employment promotion measures. Measures of social adaptation covered 125 thousand people.

The measures taken allowed more than 44 thousand people to get out of poverty.

In accordance with the President's instruction, the mechanism for the appointment of ASA is currently being improved to expand the coverage of Address social assistance to low-income families and large families with low incomes.

The President instructed from April 1, 2019, to introduce new mechanisms for the provision of ASA.

We forced this work. Therefore, in March, with your support, amendments will be made to the Law "On address social assistance" and the relevant Rules.

Firstly, in order to improve the criteria for the appointment of the ASA, the Rules "On determining the size of the poverty line" have been amended.

From April 1, the criterion for assigning assistance will increase

from 50% to 70% of the subsistence minimum per person, that is from 14 849 to 20 789 KZT this year.

In general, these measures will increase the coverage of the ASA to more than 830 thousand people (coverage in 2018 – 571 thousand people).

Secondly, every month each child from a low-income family will be paid guaranteed assistance in the amount of 70% of the subsistence minimum (20 789 KZT). The size of the ASA for adult family members will be calculated as before.  

Thirdly, we have changed the Rules for calculating aggregate income. Since April 1, when appointing the ASA, allowances for large families and mothers with many children, awarded with pendants "Kumis Alka" and "Altyn Alka", as well as disability allowances for children and scholarships will be excluded from the total family income.

This will allow an average increase in assistance by 40%.

Fourthly, the procedure for the appointment of ASA through the optimization of the requested documents will be simplified. Thus, all the necessary documents will be requested through the information systems of state bodies. In case of lack of information in information systems, specialists of employment centers or rural akimats will issue requests to the relevant state bodies.

It should be noted that electronic social maps will be formed in the regions. They will include an assessment of the needs, social and living conditions of each family.

If we consider the example of a particular family, which consists of a mother and four children, has no income from employment, but only receives the SSA to large families in the amount of 10 504 KZT (when appointed before 1.01.2018). 

For this family, taking into account the new criteria, the appointed ASA will be 103 945 KZT or will grow by 63% compared to the size of the ASA under the current system

63 740 KZT.

To strengthen social support for families caring for children with disabilities

since July 1, 2019, the amount of state allowances for the care of children with disabilities and for persons older than 18 years of the first group of disability from childhood will be increased.

As a result, the amount of allowances for 100 thousand citizens will be increased from 31 183 KZT to 41 578 KZT.

Thus, measures to strengthen social support and improve the quality of life of people will be introduced in stages, taking into account an integrated approach that affects all spheres of life of citizens, both at the central and local levels!

To expand measures to promote the employment of large families

We have another task – to expand measures to promote the employment of large families.

For this purpose, together with "Atameken" NCE provides for appropriate changes in the state Program of development of productive employment and mass entrepreneurship "Enbek":

Firstly, state grants for new business ideas in the amount of 505 thousand KZT will be provided on a non-refundable basis to ensure employment, start a family business, increase the income of large villagers.

Within the framework of microcredits, 5 thousand microcredits from 14 thousand planned for 2019 are proposed to be directed to the development of entrepreneurship among mothers with many children and persons with disabilities in rural areas.

As a result, 15 thousand large families will have the opportunity to do their own business and increase incomes.  

Also, mothers with many children and persons with disabilities in rural areas will be provided with preferential microcredits in the amount of up to 6.5 million KZT to start their own business and

up to 20 million KZT for the development of anchor cooperation.

Secondly, short-term training in popular professions will be organized for large low-income rural families. Also, for certain types of work, social jobs will be created at home with wage subsidies.

This will make it possible to combine child care and work, as well as to obtain an additional source of income.

On the implementation of a unified package of social services and support measures.

A unified package of social services and support measures that will be provided by local executive bodies will be developed for all recipients of address social assistance and large families in need.

In addition, each region, based on the capabilities of its budget, needs to work out additional support measures for all recipients of address social assistance and large families in need.

Monitoring of citizens' access to the unified and additional packages of social services will be provided through the information systems of the Ministry.

The population is growing, new families are being created, therefore the need for their apartment, in their own house is growing.

Of these, special attention is paid to large families. Today there are 340 thousand such families in the country, more than 28 thousand of them are registered in akimats as needing housing.

On behalf of the Head of state, more than 40 thousand rental apartments will be built within the program "Nurly Zher" until 2025, mainly for low-income families with many children. For this purpose, 6 thousand apartments will be built annually.

This will make it possible to fully resolve the issue of housing for 28,000 low-income families with many children who are officially on the waiting list for housing. Last year we have given housing to 1193 families.

For these purposes, in the next 7 years it is planned to allocate additional 50 billion KZT annually. The total amount of financing will be 350 billion KZT.

To implement these plans, changes are made to the current legislation.

Note:

In order to accelerate the issuance of apartments in the first half of the year, along with the construction, the issue of purchasing ready apartments in the new housing market is being considered.

Housing and mortgage programs are effectively implemented in the country that build a ladder of affordability of housing for different segments of the population.

In 2019, we plan to build more than 20 thousand rental and credit housing at the expense of the republican and local budgets, of which more than 5 thousand will be commissioned in the 1st half of the year.

In particular, to provide large families need 2 thousand apartments.

As an additional measure to provide housing for large families who want to own affordable housing, the issue of introducing concessional crediting through Zhilstroisberbank at 2% per annum for up to 20 years is being worked out.  

This mechanism will be offered only to low-income families with many children and low incomes.

For the implementation of 3 turnarounds within 25 years, annually from the republican budget will be provided for 50 billion KZT, total for the implementation of this mechanism will require 150 billion KZT.

As a result, 56 thousand poor families will be able to receive preferential loans.

Reference:

For example: if the cost of the apartment is 8 million KZT, initial payment (10%) will be 800 thousand KZT, with a loan term of 18 years,

Monthly payment size:

The first 8 years – 42.1 thousand KZT,

The remaining 11 years – 27.4 thousand KZT.

The amount of payment may be reduced, depending on the parameters of the apartments, the cost, if the family will provide additional funds for initial payment or already has savings in Zhilstroisberbank, and other factors).

To provide a preferential loan at 2% per annum will be subject to certain requirements.

Firstly, the purchased apartment or private house should be new (in new buildings).

Secondly, you must have initial payment - at least 10% of the cost of the purchased housing or apartment.  

At the same time, initial payment can be covered by the akimat at the expense of the housing certificate. The opening of the housing certificates is determined by the akimat.

The loan is issued for up to 19 years.

The amount of the issuance of preferential loan will be determined in accordance with the family income.

For example:

To obtain a loan in the amount of 6 million KZT, the income should be 56 850 KZT, in this case, the borrower will pay 31 600 KZT monthly - in the first 8 years, then 18 898 KZT - in the next 11 years.

To obtain a loan in the amount of 15 million KZT, the income should be 104 250 KZT, in this case, the borrower will pay 79 thousand KZT monthly - in the first 8 years, then 57 482 KZT - in the next 11 years.

Such a loan will be provided to:

- large families with 4 or more children;

- families having or caring for children with disabilities;

- single-parent families with minor children.

Housing will be provided in accordance with the legislation of the republic.

Thank you for your attention!

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