From January 1, 2024, Kazakhstan began a phased introduction of mandatory employer pension contributions (MPC) from their own funds in favor of their employees starting from 1.5% this year to 5% by 2028.
Paying of MPC by employers will provide employees in old age with an additional funded pension payment on a lifelong basis.
This measure is aimed at supporting the younger generation of Kazakhstanis, whose pension amounts will directly depend on their pension contributions. Their pension will consist of three components: a basic pension from the state, a funded pension - from their contributions to the Unified Accumulative Pension Fund, and a conditional funded pension - from employer contributions.
The payment of MPC is made by employers only for persons born after January 1, 1975.
It should be noted that employer's expenses for the payment of MPC in accordance with the Tax Code of the Republic of Kazakhstan are classified as deductions from taxable income. Accordingly, the burden on the employer will remain at an acceptable level.
Photo courtesy of public sources
