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From 1 July 2018 the retirement of Kazakhstanis will increase to 45% compared to 2016

pensions

About that today at the briefing in the Government of Kazakhstan dedicated to explaining of the President's address to people of Kazakhstan dated January 31, 2017, "the Third modernization of Kazakhstan: global competitiveness," said Minister of labor and social protection of population of Kazakhstan Tamara Duissenova.

She noted that in her last Message to the people of Kazakhstan the President of Kazakhstan declared transition to the third upgrade, which should ensure the joining of our Republic among the 30 most developed countries of the world and put before the Ministry a number of specific tasks for solving problems in social-labor sphere.

"On behalf of the Head of state, we provided a phased increase of pensions in 2017-2018. From 1 July 2017, the size of solidary pensions will be increased by 11%, subject to a 9% increase at the beginning of the year; the size of the basic pension will be increased by 13%, taking also into account the 7% increase at the beginning of the year. In the end, we provide increase of pensions to 20% from 1 July 2017, compared with the size of pensions in 2016.

In connection with the increase of the subsistence minimum up to 16% from 1 January 2018 will be increased benefits for disability, survivor benefits and the basic pension.

From 1 July 2018 will change the methodology of determination of the basic pension. In accordance with the new approaches it will be assigned depending on the length of the pension system.

We expect that from 1 July 2018 the average size of pensions (including basic pension) will be increased to 45% compared to the level in 2016," - said Tamara Duissenova.

The Minister also said that Kazakhstan carried out a phased modernisation of the pension system, aimed at the formation of the multilevel system, diversified by source.

"Since 1998, the state continues to pay solidarity pension to citizens with seniority of January 1, 1998, and 2005 are paid the basic pension. These payments provide a basic level. Since 1998, all of the Kazakhstani transfer 10% of salary to the pension savings Fund. The third level is the employers, who in 2020 will be required to transfer 5% contributions for each employee. Thus, our system will have 3 source of financing, it will be more diversified. World practice shows that the system has several levels more stable and allows to obtain adequate pensions," - said Tamara Duisenova.

The Minister noted that by 2020 a new model of pension provision is fully completed, will be only its development.

Recall that due to the upcoming increase in pension payments from 1 July 2017, the minimum pension (including basic pension) will increase from KZT 37 789 in 2016 to KZT 45 711. The average pension (including basic pension) will increase from 55 to 117 tenge to 66 676 tenge.

Given the projected growth in pension payments up to 45% (in 2017-2018) from 1 July 2018 the average pension (including basic pension) in Kazakhstan will make KZT 80 991.

Changed on 10 March, 2017 - 17:26
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