Kazakhstan amends monthly calculation index (MCI) , monthly minimum wage, and introduces employer pension contribution
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Changes in monthly calculation index (MCI) and monthly minimum wage
As per Article 9 of Law No.43-VIII on the State Budget for 2024 – 2026 dated 5 December 2023, the following changes are made effective from January 1, 2024.
- The monthly calculation index has increased from KZT 3,400 to KZT 3,692 effective from 1st January 2024. And, the monthly standard deduction, which is calculated at 14 times the MCI, has also been revised to KZT 51,688.
- The monthly minimum wage has increased from KZT 70,000 TO KZT 85,000.
Changes in social security contributions and introduction of employer pension contribution
A new regulation outlined in Article 251 of the Social Security Code of the Republic of Kazakhstan, dated April 20, 2023 (No. 224-VII ZRK), effective from January 1, 2024, mandates employers to contribute 1.5% towards obligatory pension.
The ceiling for social security contributions has also been revised.
| Contribution towards | Employee / Employer Contribution | Maximum | New monthly ceiling |
|---|---|---|---|
| Obligatory social security contribution | Employer contribution only | 3.5% of 7 times the minimum wage | KZT 20,825 |
| Obligatory medical aid insurance | Employee contribution | 2% of 10 times the minimum wage | KZT 17,000 |
| Employer Contribution | 3% of 10 times the minimum wage | KZT 25,500 | |
| Obligatory pension contribution | Employee contribution | 10% of 50 times the minimum wage | KZT 425,000 |
| Employer contribution (New) | 1.5% of 50 times the minimum wage | KZT 63,750 |
If an employee’s earnings used to determine the obligatory social security contribution and pension contribution fall below the updated minimum wage, the contribution will be computed based on the monthly minimum wage.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change
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Kazakhstan amends monthly calculation index (MCI), monthly minimum wage, and introduces employer pension contribution807.69 KB