Pension in Kazakhstan: basic, joint, minimum, average, maximum size, retirement age

Exit age

In 2021, women can apply for state benefits at the age of 60, and men upon reaching the age of 63. By 2027, the ages of men and women will be equal. Some citizens, based on their status and position, have the right to retire earlier :

if a person lives for more than 5 years in a radiation risk zone, then he is assigned an early pension, and women apply for benefits from the age of 45, and men from the age of 50;
relaxations are offered to mothers of many children who raised more than 4 children under the age of 8 years, so from the age of 53 they can count on a pension payment.

To retire in Kazakhstan, a citizen’s length of service, position held and gender are taken into account.

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Women can start receiving their pension savings at the age of 50, and men at 55. The pension annuity program was developed back in 1997, and was first used in 2005. This is not a benefit, but insurance payments in the form of a pension. The recipient can choose the frequency of contributions: once a year, every six months, every quarter or every month. The first payment may be increased.

As the pension fund reported, in 2021 an agreement on pension provision for workers of member states of the Eurasian Economic Union (EAEU) is expected to be signed. “This is very important, given the active migration of the population. It should be noted that the draft agreement was developed by the Eurasian Economic Commission (EEC) in 2021, but the signing has been delayed due to differences in the pension systems of the participating countries.

Thus, in mid-December, the head of the People's Bank, Umut Shayakhmetova, said that the market was discussing the issue that one of the benchmarks for the return on pension assets would be at the level: base rate + 5% (today, taking into account the base rate, it is 14.25%) . In her opinion, “for now, achieving such profitability is unrealistic, unattainable.” She clarified that “even the National Bank itself and the UAPF do not show such levels of profitability.” Murat Kastaev, General Director of DAMU Capital Management, also agrees with the banker. “Unfortunately, it is impossible to ensure a return of 14-15% with a stable and acceptable level of risk in the current market conditions. Kazakh realities do not allow this,” he noted.

5. Partial old-age pension payments are calculated in the manner established by the legislation of the Republic of Kazakhstan, as a share of the full pension payment in proportion to the existing length of service as of January 1, 1998. In this case, for the persons specified in paragraph 2 of Article 64 of this Law, service in the period from January 1, 1998 until the moment of dismissal from service is included in the length of service, provided that mandatory pension contributions to accumulative pension funds or a unified accumulative pension fund during this period were not produced.

4. Partial old-age pension payments are assigned to the categories of citizens specified in paragraph 1 of this article, if they do not have the right to receive a pension payment in full from the Center, depending on their actual work experience as of January 1, 1998, and persons specified in paragraph 2 of Article 64 of this Law, at the time of dismissal from service.

Formation of pension provision

Women, as in Russia, become pensioners earlier than men. Based on the Law “On Retirement Age,” length of service is considered an important criterion, since the higher it is, the greater the amount the pensioner can receive. Therefore, Kazakhstanis take into account the following rules :

To receive benefits, women must work for at least 20 years, and for men the minimum length of service is 25 years;
the implementation of pension reform continues on the territory of Kazakhstan, which will end only by 2027, and from this moment the same retirement age will be established for the entire population, regardless of age;
To apply for an early pension, it is necessary to prepare official documents confirming the citizen’s right to benefits from the state.

Until now, a multi-level system for calculating benefits is used in Kazakhstan. Therefore, three levels apply :

Base. Such a pension is assigned to every citizen of the Republic of Kazakhstan upon reaching the age of a pensioner. The money is transferred from the state budget.
Cumulative. This benefit is paid from the country’s budget or a special Unified Accumulative Fund (USAP), which is intended for the formation of contributions.
Voluntary. It is formed only if a citizen of Kazakhstan voluntarily makes contributions to his future pension.

Attention! The most significant for citizens is the funded pension, which depends on the length of service. The longer employers transfer money to state funds for an employee, the higher the specialist’s benefit will be after retirement. Enterprise managers transfer 10% of their monthly income for each employee.

Retirement age in Kazakhstan

An important point is the retirement age in Kazakhstan. It depends on the following factors:

Job title.
Floor.
Seniority.

The retirement age in Kazakhstan for women, as well as in Russia, is lower than for men. Citizens with a certain length of service can count on receiving benefits. The higher it is, the greater the payout. The minimum differs between men and women. Women are required to work at least 20 years, and men at least 25.

Until 2027, it is planned to increase the age for receiving benefits in stages. In the 90s, the following systems were created in the country:

State, solidary, allowing to provide the necessary minimum funds.
Pension savings involves the use of individual accounts and payments from wages.
Savings voluntary - with individual accounts in funds.

During the same post-Soviet period, there was an increase in the retirement age. This happened over a period of six years - for women up to 58 years old, and for men up to 63. There are also certain types of activities with the right to early completion of work.

Many people want to know what the minimum pension is in Kazakhstan in 2020. When generating benefits, basic and calculated values are taken into account. Currently, the basic pension in Kazakhstan is 15.2 tenge. The funded pension is a new type of pension, which began to be received in 2014. Savings can be paid either as a lump sum or every year or month.

In 2005, social benefits were also established, without special conditions. This amount was intended for all people of retirement age. The benefit was not influenced by length of service and salary income. Such payments are issued for vulnerable members of the population. The size is determined as a certain percentage of the cost of living. For the calculations, a rate of 40% was taken. Every year there is an increase in pensions in Kazakhstan by 5%. The amount depends on the minimum subsistence level.

Since 2005, the amount of contributions has consisted of the following components - basic and solidarity payments. The latter amount is provided to citizens who, as of January 1998, had at least 6 months of service.

The source of state pension payments is social tax, which is collected from various business entities.

How to determine work experience

Since the length of service directly affects the pension, every resident of Kazakhstan is interested in its correct determination. It includes the following periods :

service in the Ministry of Internal Affairs;
caring for disabled parents or children;
military service;
the period of mother's care for the baby;
caring for disabled relatives;
entrepreneurial activity;
caring for a stranger receiving a disability pension;
a period of cohabitation with a spouse serving in the Ministry of Internal Affairs and living in regions where there are difficulties in finding a suitable job;
studying at universities.

When calculating length of service, length of service is taken into account. If a citizen of Kazakhstan has the right to early registration of benefits from the state, then when calculating length of service, service in the army during military operations, participation in wars, employment in infectious diseases organizations, work in mines, service in the police or troops, as well as work on water TS.

Main types of payments

Kazakhstanis receive a state pension, which consists of several payments at once:

basic, assigned to all citizens upon reaching the appropriate age, and when applying for it, the length of service and the total amount of insurance contributions are taken into account, and its minimum amount is 15.2 thousand tenge for 30 days;
solidary;
accumulative, which appeared only in 2014, and payments on accumulated contributions are paid annually, monthly or once.

Attention! If a Kazakhstani decides to immediately receive all savings, then the maximum amount is 249 MCI.

How much have pensions and state benefits increased in Kazakhstan?

NUR-SULTAN. KAZINFORM - From January 1, 2021, in Kazakhstan, the size of old-age pensions has been increased by 7%, the size of the basic pension and state benefits has been increased by 5%, reports MIA Kazinform with reference to the press service of the Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan.

How benefits are calculated

The future size of the pension of every officially working person increases annually. Benefits paid are regularly recalculated. Special algorithms are used to calculate each type of benefit.

Basic

Its size is half the subsistence minimum. But it is gradually increasing due to social additional payments, depending on the length of service accumulated before and after 1998. Therefore, its size often ranges from 53 to 100% of the subsistence level.

If a person has 10 years of experience, then his pension is 54% of the monthly salary. For every additional 12 months of work, the benefit increases by 2%.

Solidary

During its calculation, length of service and monthly income are taken into account. The standard payment is 59% of a citizen’s average monthly income for 36 months since 1995. According to the new rules in force in Kazakhstan, for each year of work the joint pension increases by 1%. The average payment in the Republic is about 74% of citizens' income .

How much is the payout - minimum and maximum amount?

The government of Kazakhstan has determined the minimum pension amount, which is called the “minimum wage”. Therefore, even if a person has not officially worked for the required number of years in his life to form the minimum length of service, he still receives a minimum benefit, the amount of which is 43,272 tenge.

Taking into account new methods for calculating pensions, the average payment is 85 thousand tenge. At the same time , the maximum indicator was recorded, which after applying indexation is 117 thousand tenge . According to the new rules, when determining the total payment, the basic and joint pension are taken into account.

People who have already received a pension do not have to independently visit government agencies with any applications, so their payment is automatically increased based on the recalculations made. To do this, you do not need to prepare any certificates or other documents.

It is also useful to read: Pension in Belarus

What benefits are paid to military personnel and police officers?

According to new rules adopted by the Government of Kazakhstan, the size of pensions for pensioners who are former police or military officers is increasing.

When calculating their benefits, the following rules are taken into account:

before the introduction of new rules for calculating pensions, former military personnel and employees of the Ministry of Internal Affairs could take a well-deserved rest upon reaching the age of 45;
the new reform has not changed this rule, so people working in difficult and dangerous conditions can count on early retirement;
it is allowed to receive benefits from the state not only on the basis of length of service, but also upon receipt of any group of disability related to work activities;
even if a citizen of Kazakhstan has mixed experience, he can count on early receipt of state benefits;
since 2015, the pension amount for such specialists has been increasing annually, so each year worked is assessed separately;
additionally, GPC - annual pension coefficients have been introduced, so thanks to them the basic benefit increases;
the premium for WWII participants is 31% if they are not yet 80 years old, and veterans over 80 years old receive a premium of 41%;
for disabled people over 80 years of age, the premium is 100%;
non-working pensioners who live with dependents receive an increase from 33 to 100 percent.

The payment is indexed annually, taking into account inflation and other economic indicators.

If a soldier or police officer dies while on duty, then his spouse and children have the right to apply for a survivor's pension. It is assigned to all disabled family members. This benefit is assigned for the entire period of incapacity for work.

The spouse of a deceased military or police officer, hoping to receive this government payment, prepares the following documentation:

certificate of official marriage with a deceased military man or police officer;
a copy of a document confirming the existence of family ties, for example, children prepare a birth certificate or passport containing information about their parents;
documentation of paternity;
copy of the passport.

Important! More accurate information about the rules for calculating benefits can be obtained from the employees of the center involved in assigning pensions. The pension is set at a fixed amount, which increases annually due to indexation.

In the video there is information about the retirement age in Kazakhstan:

Amounts of all types of benefits and pensions in Kazakhstan from January 1, 2021

The Law “On the Republican Budget for 2020-2022” was signed by the President of Kazakhstan Kassym-Jomart Tokayev on December 4, 2019.

To whom and by how much will these payments increase next year?

Age pensions awarded before January 2020 are subject to an increase of 7 percent of the pension received. For example, the pension amount before the increase was 57,900 tenge; from January 1, 2021, it will be equal to 61,953 tenge.

The minimum pension will increase from 36,108 tenge to 38,636 tenge.

For citizens who initially apply for a pension in 2020, the maximum income (salary) for calculating the amount cannot exceed 46 times the monthly calculation index - 121,946 tenge. For example, if the actual income was more than 180 thousand tenge, then an income of 121,946 tenge will be accepted for calculating the pension.

From January 1, 2021, they will be installed:

— monthly calculation index (MCI) — 2651 tenge;

— subsistence minimum (LM) — 31,183 tenge;

— the minimum amount of the basic pension payment will be 16,839 tenge;

— minimum pension (for those appointed in 2021) — 38,636 tenge;

— minimum salary — 42,500 tenge.

Increasing state social benefits for disability, loss of a breadwinner, age, state special benefits for persons employed in jobs with particularly harmful and difficult working conditions, child benefits (one-time and for child care up to one year), as well as benefits for large families and parents (guardians, trustees) is provided taking into account changes in the size of the monthly calculation index (MCI) and the subsistence level (ML).

Benefits for war participants

The special state benefit for disabled people and participants of the Great Patriotic War will amount to 42,416 tenge (16 MCI).

Persons equated to disabled people of the Great Patriotic War - 20,016 tenge (7.55 MCI).

Persons equated to participants in the Great Patriotic War - 16,410 tenge (6.19 MCI).

Widows of soldiers who died during the Great Patriotic War - 11,877 tenge (4.48 MCI).

For wives (husbands) of disabled people and war veterans who died in the post-war period and were recognized as disabled during their lifetime, who did not remarry - 6,787 tenge (2.56 MCI).

Benefits for home front workers - 5647 tenge (2.13 MCI).

Heroes of the Soviet Union, holders of the Order of Glory of three degrees, who are participants in the war, will be paid 367,509 tenge (138.63 MCI) monthly.

For persons awarded the titles of “Halyk Kaharmany” and “Kazakhstannyn Enbek Yeri”, the monthly benefit amount will be 138.63 monthly calculation index - 367,509 tenge.

Heroes of Socialist Labor who participated in the war - 197,898 tenge (74.65 MCI).

Victims of political repression - 2837 tenge (1.07 MCI).

Personal pensioners - 2837 tenge (1.07 MCI).

Disability benefits . For people with disabilities from a general disease: Group I - 59,872 tenge (1.92 minimum monthly wage), group II - 47,710 tenge (1.53 monthly minimum), group III - 32,431 tenge (1.04 monthly minimum).

Disabled children from 16 years of age:

— Group I — 59,872 tenge (1.92 PM);

— Group II — 49,581 tenge (1.59 PM);

— Group III — 37,420 tenge (1.20 RM);

- disabled children under 16 years old - 43,657 tenge (1.40 RM).

Benefits for working under special conditions

The benefit for recipients on list No. 1 (persons who worked in enterprises with particularly hazardous working conditions), amounting to 9.42 MCI, will increase to 24,973 tenge.

For recipients on list No. 2 - up to 22,216 tenge (8.38 MCI).

Survivor benefits

In the absence of one of the parents, children or disabled family members will be paid monthly:

— for one — 26,818 tenge (0.86 PM);

— for two — 46,463 tenge (1.49 RM);

— for three — 57,689 tenge (1.85 PM);

— for four — 61,119 tenge (1.96 PM);

— for five — 63,302 tenge (2.03 PM);

— for six or more — 65,797 tenge (2.11 PM).

Orphans will receive 36,796 tenge (1.18 monthly subsistence minimum) each.

Child benefits. The one-time benefit for the birth of a child will increase:

- for the first, second and third child - up to 100,738 tenge (38.0 MCI);

— on the fourth — up to 167,013 tenge (63.0 MCI).

Monthly child care for up to one year for non-working women will be:

— for the first — 15,270 tenge (5.76 MCI);

— on the second — 18,054 tenge (6.81 MCI);

— on the third — 20,811 tenge (7.85 MCI);

- for the fourth or more - 23,594 tenge (8.9 MCI).

For those raising a disabled child - 43,657 tenge (1.4 monthly wages).

Allowance for caring for a disabled person of group I from childhood - 43,657 tenge (1.4 monthly wages).

Benefits for mothers of many children

For mothers with many children who were awarded the “Altyn Alka” (seven or more children) and “Kumis Alka” (six or more children) pendants, the monthly allowance will increase to 16,967 tenge (6.4 MCI).

Funeral benefits

Funeral benefit - 41,621 tenge (15.7 MCI).

Funeral benefit for disabled people and participants of the Great Patriotic War - 97,027 tenge (36.6 MCI).

From January 1, 2021, a new type of state benefit for large families with 4 or more minor children (up to the age of 18) or full-time students under the age of 23.

This benefit will be assigned regardless of family income, in differentiated amounts depending on the number of children in the family from the republican budget:

4 children - 42,496 tenge (16.03 MCI);

5 children - 53,127 tenge (20.04 MCI);

6 children - 63,757 tenge (24.05 MCI);

7 or more children - 74,388 tenge (28.06 MCI).

For families who are currently recipients of a special state benefit as a large family, respectively, these are families to whom it is assigned until 2021, the transition to the new benefit will be carried out automatically , without their contacting the Public Service Center.

The new benefit will be assigned from the date of application in 2021. The process of accepting documents is not limited by any deadlines.

Children who continue their studies after reaching 18 years of age must annually provide a certificate of study .