Today in Majilis the Minister of labor and social protection of population Tamara Duissenova presented to the deputies the draft Law "On amendments and additions to some legislative acts of Kazakhstan on social security", developed in implementation of the President's address to people of Kazakhstan dated January 31, 2017, "the Third modernization of Kazakhstan: global competitiveness".
The head of the MLSP RK noted that the bill provides:
- increase of pensions from 1 July 2017 up to 20% compared to 2016;
- increasing the size of lump-sum allowance in connection with birth of a child from 1 July 2017 up to 20%.
- transfer the intended period of implementation of 5% mandatory pension contributions from the employer from 2018 to 2020.
"On behalf of the President in 2017-2018 will be gradually increased the size of pensions paid from the national budget. The sizes of solidary pensions will be increased by 11%, subject to a 9% increase at the beginning of the year. 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 an increase of pensions to 20% from 1 July 2017, compared with the size of pensions in 2016. This increase applies to all pensioners, or more than 2 million people," - said Tamara Duissenova.
Given the above changes, the minimum pension (including basic pension) will increase from 37 789 KZT in 2016 to 45 711 KZT from 1 July 2017. The average pension (including basic pension) will increase from 55 to 117 KZT to 66 676 KZT.
"The next increase will be July 1, 2018, and will be due the change in methodology, the basic pension appointment. In accordance with the new approaches it will be assigned depending on the length of the pension system, which includes work experience before 1998 and the period income of pension contributions to accumulative pension system (hereinafter the APS) since 1998," - said Tamara Duissenova.
The Minister stressed that the basic pension will be recalculated for all pensioners. They do not need to provide any extra documents because the information on employment history prior to 1998 is contained in the pension business, and data transfers of compulsory pension contributions will be provided from a Single account information database of the Center for human resource development of the MLSP RK.
Given changes in methodology for determining the subsistence minimum and increase of pensions this year go up to 20% of the bill proposes to increase the minimum pension from 50% to 54% of the subsistence minimum.
"Thus, from July 1, 2018, the basic pension of citizens who have the seniority and the period of contributions to APS up to 10 years, will account for 54% of the subsistence level; people with 20 years of experience – 74% of the subsistence minimum; in Kazakhstan, having experience of more than 33 years -100% of the subsistence minimum. In the end, the citizens having the seniority and the period of contributions to the APS, will receive a larger pension. It is expected that 2 million pensioners from 1 July 2018, up from 44.7% to over 74% of the subsistence minimum, 45.2 per cent will receive 100% of the subsistence minimum, or 2 times more than the current basic pension," - said Tamara Duissenova.
The level of lump sum state benefits in connection with childbirth from 1 January 2017 increased by 7%, and from 1 July 2017 will be increased by 20%. As a result, in 2017, compared to 2016 growth will reach 27%.
"If in 2016, the state allowance for the birth of the first, second and third child was 66 621 KZT, from January 1, 2017, his size was 71 270 KZT, and from July 1 will rise to 86 222 KZT. The state allowance for the birth of the fourth or more children was $ 111 035 KZT, and from 1 January 2017, it rose to 118 thousand 783 KZT, July 1, 2017 - to be equal to 142 947 KZT," - said Tamara Duissenova.
The Minister stressed that, in General, the aforementioned increase of pensions and allowances in the national budget for 2017 put 81,6 billion.
In addition, the draft Law proposes to streamline the process of appointment allowances paid to parents of children with disabilities. With the passage of mediko-social examination in addition to service of disability they will be able to apply for granting of the allowance, raising a disabled child.
The bill provides amendments to 8 laws of the Republic of Kazakhstan. Negative legal and socio-economic consequences of its adoption is not expected.