In the implementation of the order of the Head of State from January 1, 2019, the minimum wage will be increased by 1.5 times and will amount to 42 500 KZT, therefore, appropriate amendments to the draft Law of the Republic of Kazakhstan "On the republican budget for 2019 – 2021" was introduced.
At the same time, according to the Constitution of the RK and Labor legislation of the RK, citizens of the Republic of Kazakhstan are guaranteed a minimum wage.
I.e., the size of the monthly wage of the employee who performed labor standards or labor duties, cannot be below the minimum monthly wage.
In this regard, from January 1, 2019, the increase in wages will affect workers whose wages will be lower than the size of the MW – 42 500 KZT.
In this regard, the wage of certain categories of civil servants whose official salary will be lower than the new size of the MW will be increased. This innovation will affect about 275 thousand civil servants, for whom the growth of wages after the increase in the MW will be an average of 35%.
It is first of all: workers of 1-4 category, technical personnel, main and administrative personnel, main personnel with secondary special education without category and low experience.
For example, among the support and technical personnel - clerks, archivists, secretaries, operators, etc.
Administrative personnel - technicians, translators, methodists, accountants, etc. with secondary special education.
Among the main personnel - specialists with secondary special education without categories and a short work experience:
in education - the innovation will mainly affect primary school teachers, teachers of additional education, educators, methodists, laboratory technicians, etc.;
in health care - nurses, paramedics, obstetricians, pharmacists, dental technicians, etc.;
in other areas - social workers, workers of culture and art, sports, agriculture, artists, archivists, coaches, athletes, technicians, engineers of the main service, etc.
In addition, the increase will affect more than 300 thousand staff units of workers whose wages are higher than the planned size of the MW, taking into account the increase in the coefficients related to each other in the corresponding hierarchy. In this case, the increase is negligible, due to the fact that the essence of this improvement is the need to preserve the respective midcategory intervals between positions.
about 300 thousand workers, 117 thousand 500 technical and administrative personnel working in the budgetary spheres-75 billion 180 million KZT are allocated for them.
148 thousand specialists in the field of education - 8 billion 692 million KZT;
6 thousand 800 health care specialists - 887 million KZT;
more than 32 thousand specialists in other fields, including about 19 thousand civil servants working in law enforcement and defense bodies.
In total, 1 billion 85 million KZT is allocated for specialists in other fields of activity.
In general, 86 billion KZT will be provided annually at the expense of the Government reserve to finance the increase of wages for civil servants in the republican budget for 2019-2021.
Secondly, the increase in the minimum wage will reduce the tax burden for the employed population, i.e. the minimum wage is deducted from the income of employees in taxation, thereby increasing the disposable income of all employees.
To compensate for the losses of local budgets from the lack of individual income tax, in connection with tax deductions, the republican budget for the next 3 years will provide 10.5 billion KZT annually.
In general, the increase in the MW will lead to an increase in wages to an average of 30% for 1 million 300 thousand people working in low-paid positions in all sectors of the economy.
In addition, in the framework of the Five social initiatives of N.A. Nazarbayev, on his behalf from January 1, 2019 the tax of citizens of Kazakhstan, receiving a monthly income of up to 25 MCI (or up to 63 125 KZT in 2019) will decrease.
That is, the taxable income of an employee in 2019 with a salary of up to 63,125 KZT will be reduced by 90%. The remaining salary will be subject to the IIT at the rate of 10%.
Thus, for such categories of persons the tax burden will be reduced by 10 times.
This provision has already been adopted by Law, it should be noted that the financial burden on employers will not increase.
As a result of these two innovations, the income growth of the working population will increase.