Since the 1st of January 2022, the minimum wage in Kazakhstan is 60.000 tenge, or approximately 130 euros according to today´s exchange rate. The minimum wage was increased from a previous level of 42.500 tenge, so the increase is very large, 41 % in percentage terms.
In accordance with the Labor Code, employers will be required to provide employees with wages at a level not lower than the minimum wage. This measure will lead to an increase in the cash income of 1.6 million people working in all industries at enterprises of various forms of ownership, the ministry of labor and social protection of the population of the republic noted earlier this year.
The minimum pension in Kazakhstan was also increased this year to about 42.000 tenge, and the amount of social benefits, the recipients of which are 1.9 million people, has been increased by 5%.
The annualized inflation rate in Kazakhstan was 14 % as measured in May of 2022, which means the increases in minimum wages and social benefits are not enough to maintain the purchasing power of their recipients.
The minimum wages in countries such as Kazakhstan, Ukraine, and others in the region are usually revised quite often by the respective governments. This will especially be the case in an evironment of high inflation. We recommend to stay updated on those requirements if they affect your business, or use a professional payroll partner to handle payroll on your behalf.
