31 July, 2018

Zhakupova explains innovations in Law on Social Security

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How the size of basic pension has changed since July 1, 2018, whether the payment of contributions to the Unified Accumulative Pension Fund extended to foreign citizens and women on maternity leave? Vice Minister of Labor and Social Protection of the Population Svetlana Zhakupova answered these questions at the press conference in the Government.

So, when the journalists asked how the basic pension will change from July 1, the vice minister replied that the minimum size, which was the benchmark for recalculation, is 54% of the subsistence minimum.

"This is 15,274 tenge (which they received before July 1). From July 1, 15,274 tenge is received by those people who have a seniority less than 10 years or is equal to zero. They should not receive less than this amount," explained Zhakupova.

The only issue that, according to the vice minister, is currently on the agenda in the ministry, are pensioners for whom employers have not transferred pension contributions in time, or have transferred them in one payment. They are counted as one month in the database.

"In accordance with the current legislation, it is necessary to confirm that this contribution covers the whole year rather than one month. A court decision is necessary. It is necessary to revise the Government's decree, the order, to allow the person to prove. If there is a record in the workbook that he worked for 12 months and only one payment in pension contributions, then this payment should be divided by 12 and counted as 12 months. We are working on this now," said Zhakupova.

Also the vice minister explained that foreign citizens with a residence permit, permanently residing in the country, must pay a state duty in order to carry out their work. Today, with these same duties, they list all mandatory payments.

At the same time, labor migrants, foreigners attracted for work by employers, are now exempt from payment of contributions. Since today there is no pension agreement. Now the procedure of coordination between the states is under way. Each country should present its position. In Kazakhstan, since 1998, people leaving the country are being paid out on a one-time basis from the pension fund.

July 2, 2018, the Head of State signed the Law of the Republic of Kazakhstan "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Social Security Issues." The document is aimed at fulfilling the tasks set by the Head of State to strengthen social support for citizens.

In addition, Zhakupova said that a 10% contribution from a lump sum payment for the care of a child is not paid. However, 10% of the contributions must be paid from the social insurance fund for childcare.

"Let's say a person is a participant in the social insurance system and paid contributions to the State Social Security Fund for him. And when the pregnancy, childbirth occurred, she received payments, after the childbirth, she leaves to care for the child. Accordingly, the salary was 100,000 tenge, payment to it from the fund will be 40,000 tenge. Of these 40,000, a woman pays 4,000. The state for this woman subsidizes another 6,000 tenge for one year so that her pension experience does not stop, so she participates in the system. And just as she paid 10,000 tenge to the pensions fund before the pregnancy, during the care of the child these 10,000 are subsidized by the state and paid to the fund," she explained.

Also during the press conference it was noted that according to the legislation the upper and the lower limit of pension contributions is set. The upper limit should not exceed 75 times the minimum wage, the lower limit should not be lower than 10% of one minimum wage.

As for individual entrepreneurs, the income from which it will calculate and transfer contributions is determined independently by an individual entrepreneur. In this case, there is one condition that this income should not be lower than the income declared for taxation.

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