Rise in minimum wage effective from January 2026 announced
Revamped Article:
In the heart of Kazakhstan, there's a buzz around the corner. Seems like they're set to ramp up the minimum wage! Svetlana Zhakupova, the Minister of Labor and Social Protection, spilled the beans to Vechernyaya Astana, with support from Kazinform, revealing this exciting development.
Zhakupova explained that for the first time ever in 2024, the Ministry of Labor has devised a clever methodology to determine the minimum wage, taking into account labor productivity, the median wage, and inflation.
Several institutions are currently diving headfirst into research to nail down accurate indicators of labor productivity, median wages across various regions and sectors. This goldmine of data will serve as the foundation for calculating the Minimum Wage Per Hour (MZP).
Zhakupova added that once the research is wrapped up, there's a strong chance the MZP could receive a nice boost, effective from January 1 of the following year!
Now, let's flesh out a few key details that might tickle your fancy. For instance, from 2024 onwards, benefits and allowances are out of the wage calculation game in Kazakhstan. Employers can't skate by on those extras if they want to meet the minimum wage obligation.
Moreover, foreign workers need to be paid a rate that's fitting for the job and the market, an extra layer on top of meeting the minimum wage standards. This clever move ensures that the minimum wage sets a floor but doesn't stand in the way of wages soaring higher in response to market forces.
Payment needs to be handed out in Kazakhstani Tenge and can only begin once the employment agreement is signed, post receiving a work permit. Speaking of taxes, the minimum wage figure plays a crucial role in the calculation of obligatory social medical insurance contributions (OMIC), which was 3% for employers in 2024, with calculations capped at ten times the minimum wage.
The revised approach in 2024 showcases a significant shift towards a more open, transparent, and standardized methodology. The higher fixed minimum wage, exclusion of benefits from wage calculations, mandate for payment in local currency, and closer ties to social insurance frameworks all contribute to a more streamlined labor standard and economic policy structure.
In the realm of business and finance, the revised minimum wage methodology in Kazakhstan for 2024 incorporates labor productivity, median wage, and inflation to set a more transparent and standardized Minimum Wage Per Hour (MZP). Employers must meet the minimum wage obligation by paying foreign workers a rate appropriate for the job and the market, ensuring the MZP serves as a floor instead of a cap on wages.
