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One-time automatic recalculation of basic pension to be made in July 2018 – S. Zhakupova

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As part of the execution of the instruction of the Head of State, the Concept of further modernization of the pension system of the Republic of Kazakhstan until 2030 was adopted, which is designed to ensure the adequacy of pension payments for a decent standard of living at retirement age. The concept provides for an annual increase in the size of pension benefits two percent ahead of inflation.

Therefore from January 1, 2018, the size of pension payments by age (solidarity pensions) is increased by 8%, taking into account the forecasted inflation of 6%. The size of the basic pension was raised to 6% and amounted to 15 274 tenge.

In addition, the President’s Address “New Opportunities Under the Fourth Industrial Revolution” states that the basic pension will increase on average 1,8 times from July 1, 2018, depending on the length of service.

As of June 1, 2018, the number of recipients of pension payments by age was 2,141,871 people, the minimum pension (taking into account the basic pension) is 49,019 tenge, the average size (including the basic pension) is 70,765 tenge, the maximum size (taking into account the basic pension) is 98,247 tenge.

According to the vice-minister of labor and social protection of the population, since July this year, the procedure for the appointment of a basic pension is changing. Thus, the amount of the basic pension paid by the state from the budget to all citizens who have reached the retirement age will be tied to the length of service and duration of participation in the pension system. If today all pensioners receive the same basic pension in the amount of 54% of the subsistence level, 15 274 tenge, then from July 1 this year, its size will increase, depending on the length of participation in the pension system.

The minimum level of the basic pension at the rate of 54% of the subsistence minimum will be established for citizens who have worked less than 10 years or do not have it at all. For every year over 10 years the size of the basic pension will increase by 2%. The basic pension in the maximum amount of 100% of the subsistence minimum or 28,284 tenge will be received by citizens who have worked for 33 years or more.

This innovation will be extended to both future pensioners and already retired people. In this regard, from July 2018, a one-time automatic recalculation of the basic pension for all retired people will be made without demanding additional documents.

“The new methodology for assigning a basic pension corresponds to the principle of social justice, since not only will it help to improve the financial situation of pensioners, but will also serve to strengthen labor motivation and formalize the labor relations of citizens,” Zhakupova concluded.

Source:The Prime Minister of kazakhstan

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