Subsidizing of mandatory pension savings will be a good help for moms Kazakhstan - IA "Kazinform" from 01.04.2014
On behalf of the Head of State since January of this year in our country subsidy of compulsory pension contributions of women who are on leave to care for a child is introduced. Today For information on how this work is carried out and amount of subsidies our women can expect for, Saule Dyusenova, the first deputy director general of the State Enterprise "State Center for Pension Payments" in an interview with the agency told.
- Saul Sagintaevna, from which period subsidizing of the compulsory pension contributions of women on maternity leave is performed?
- First of all, it should be noted that an average size of pension savings of women is 25% lower than men's. Clearly, this is associated with less experience of women's participation in a funded system - due to its location on maternity leave and earlier retirement than men.
As you know, the President of Kazakhstan, Nursultan Nazarbayev, instructed the Government to examine issues of public funds for additional payments of compulsory pension contributions for working women on maternity leave.
In this connection, on January 10, 2014 changes were made to the Law relating to pension schemes that impose subsidy of compulsory pension contributions of working women, participating in the social security system, on leave for child care. However, these innovations did not come into force from 10.01, but from 1 January of the current year.
- What will be the process like?
- Subsidies of the compulsory pension contributions will be carried out immediately after the treatment of participants of the obligatory social insurance payments for social care for the child. - What is the volume of mandatory pension contributions?
- The legislation stipulates that the total amount of mandatory pension contributions, taking into account the subsidy from the state budget and mandatory pension contributions deducted from welfare payments for care, will make up 10 percent of revenue, accounted as an object of calculation of social contributions.
Thus, 10 percent of mandatory pension contributions from the average monthly income, considered as an object of calculation of social contributions: 4 percent will be provided at the expense of social payments from the Fund, and 6 percent - from the budget. In general, the monthly budget subsidy is defined as the difference between the amount of mandatory pension contributions calculated from the average monthly income, considered as an object of calculation of social contributions and the amount of mandatory pension contributions deducted from the payment of social care from the Fund.
- Could you give us specific examples to explain this procedure?
- For example, the average monthly income, which is calculated from the social tax, amounted to 100 000 tenge. The amount of monthly payments in case of loss of income due to child care reaches the age of one year from the Fund and is calculated as 40 percent of the average monthly income, i.e out of 100,000 tenge this amount is 40 000 tenge. The amount of subsidy (SUB) in this case is 6000 tenge (100 000 * 10%) - (40 000 * 10%)). Thus, mother’s account in the PSF for a year will replenish with 120 000 tenge, 72 000 tenge of which are grants from the Republican budget and 48,000 tenge are of social benefits paid from the State Social Insurance Fund.
The second example, in the case of the birth of two children - twins. The average monthly income, which is calculated from the social tax, is 100 000 tenge. The amount of monthly payments in case of loss of income due to child care for a year from the Fund for each child will be 40 per cent of the average monthly income, i.e for two children it is - 80,000 tenge. The amount of subsidy (SUB) in this case is 2000 tenge (100 000 * 10% - (40 000 * 10 000 * 40% 10%))). Thus, the mother of twins also replenishes her retirement account in UPSF. For a year +120 000 tenge, 24 000 tenge of which are by grants from the national budget and 96 000 tenge are of the social payments from the State Social Insurance Fund.
- How many mothers in Kazakhstan are already receiving subsidies of pension contributions? - ---As of January 1, 2014 the number of recipients of social payments for care, who have the right to subsidize compulsory pension contributions, amounted to 92.6 thousand people. Budget requirements for the transfer of amounts of subsidy in UPSF amounted to over 500 million tenge. We think that the introduction of mandatory pension savings subsidy will be a good help for our mothers”.