Kazakhstan is set to increase its statutory monthly minimum wage from KZT 85,000 to KZT 110,000 starting 1 January 2027. The announcement was made by President Kassym-Jomart Tokayev in his address to the nation on 28 October 2026 and subsequently confirmed by the Ministry of National Economy.
The increase of KZT 25,000 represents a rise of approximately 29.4% compared with the current minimum wage. According to the Government, the measure is expected to affect around 1.8 million people, including more than 370,000 public-sector employees.
In addition, the Monthly Calculation Index (MCI) is planned to increase from KZT 4,325 to KZT 4,693 from 1 January 2027, representing an increase of approximately 8.5%. The MCI is used as a reference for calculating various statutory payments, including fines, state fees, certain taxes and social benefits. The proposed amount is included in the draft republican budget for 2027–2029 and remains subject to final approval.
What does this mean for employers?
The minimum wage establishes the statutory lower limit for monthly remuneration when an employee fulfils the established working-time norm and employment duties. Employers will therefore need to review their payroll arrangements and ensure that employees working full-time are paid at least the new minimum amount from January 2027.
Companies with employees currently earning close to the minimum wage should assess the impact on their salary budgets and employment costs. Any necessary changes to employment terms and payroll settings should be prepared ahead of the effective date.
The MCI increase will also affect calculations linked to this indicator, potentially changing certain statutory payments and obligations. Employers should distinguish these provisions from those based on the minimum wage, as the two indicators serve different purposes.
Preparing for the change
Employers should monitor the final adoption of the 2027–2029 republican budget and ensure that their payroll calculations and relevant statutory payments are updated accordingly from 1 January 2027.
Leinonen Kazakhstan can assist companies with reviewing the impact of these changes, updating payroll calculations and employment documentation, and ensuring that salary payments comply with Kazakhstan’s labour and tax requirements.
