Meanwhile, the average monthly payment from the Unified Accumulative Pension Fund (UAPF) upon reaching retirement age is 33,847 tenge, and the maximum monthly payment is 945,752 tenge. This difference between the average and maximum values is explained by many factors. By the way, the basic and PAYG pensions for each person also differ significantly; the reasons are the same, we will talk about them later.
First, let's find out what the pension of Kazakhstanis consists of. The total pension in the Republic of Kazakhstan is formed by payments out of two following sources:
- the state budget in the form of a basic and PAYG pension;
- UAPF at the expense of existing savings (contributions and accrued return on investment).
Basic pension is a state pension payment assigned to all citizens who have reached retirement age. It is noteworthy that if previously it has been provided to everyone in the same amount, since July 2018 the size of basic pension has been determined for each recipient individually depending on length of participation in the pension system.
As for payment from the UAPF, it consists of two components - mandatory and voluntary.
The mandatory funded system includes 10% of the employee's MPC and mandatory professional pension contributions (MPPC) of the employer in the amount of 5% of the income of the employee engaged in hazardous working conditions.
Since January 1, 2024, defined contribution pension system was supplemented with a new component, mandatory pension contributions of the employer (MPPC).
The size of MPPC will depend on the monthly income of the employee and will be financed by employers. In order to maintain a balanced burden on the employer, the MPPC will be transferred with a gradual increase in the contribution.
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