Changes in pension system of Kazakhstan

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From July 1, 2017 the basic pension in Kazakhstan will depend on the record of service.

Vice-Minister of Healthcare and Social Development of Kazakhstan Svetlana Zhakupova reported this at the the Central Communications Service briefing, reports BNews.kz.

As Svetlana Zhakupova noted, social modernization is in full scale throughout the country and influences all the spheres.

The first direction is a pension system. The first measures were taken in 2013, when the President instructed to develop the pension system modernization plan which was approved by the Decree of the President of the Republic of Kazakhstan in 2014.

"The first step was made in 2014 when we introduced compulsory pension contributions for those working in harmful and difficult working conditions. We introduced subsidy of compulsory pension contributions for women who are on leave to care for a child, so that they do not lose retirement savings, but rather accumulate them and can provide for themselves in old age," she said.

The second stage of modernization, she said, provides full transformation of the basic pension which is paid today without considering the record of service and income.

However, she noted that from July 1, 2017 the pension system of Kazakhstan will be changed.

"From July, 1 2017 basic pension will depend on the length of pensionable service. This means that if a person has a record of service of less than 10 years, than he or she will get the basic pension within 50% of the minimum living wage. In the following years - over 10 years of the service record - 2% will be assigned for each year of experience. So, if the record of service is 20 years, than the basic pension will be within 70% of the minimum living wage. One minimum living wage is the highest pension paid to a pensioner if he or she has 35 years and over of the service record," said Vice-Minister.

Text and pictures by NUR.KZ