Kazakhstan Implements Changes in MCI and Pension Contributions 

We remind our readers that effective from January 1, 2024,  Kazakhstan has made significant amendments to its economic regulations: 

• Monthly Calculation Index (MCI): 
  • Increased from KZT 3,400 to KZT 3,692. 
  • Monthly standard deduction revised to KZT 51,688. 

• Monthly Minimum Wage:
  • Increased from KZT 70,000 to KZT 85,000. 
    
• Employer Pension Contribution:** 
  • A new type of pension contribution was mandated at 1.5% towards the obligatory pension. The new contribution only applies to employees of a certain age group. 
  • New monthly ceiling introduced for various contributions, aligning with minimum wage adjustments. 

The revised ceilings for social security contributions, effective from the same date, are as follows: 

• Obligatory Social Security Contribution: 

• Employer Contribution Only: 3.5% of 7 times the minimum wage (New Monthly Ceiling: KZT 20,825). 

• Obligatory Medical Aid Insurance: 

• Employee Contribution: 2% of 10 times the minimum wage (New Monthly Ceiling: KZT 17,000). 

• Employer Contribution: 3% of 10 times the minimum wage (New Monthly Ceiling: KZT 25,500). 

• Obligatory Pension Contribution: 

• Employee Contribution: 10% of 50 times the minimum wage (New Monthly Ceiling: KZT 425,000). 
• Employer Contribution (New): 1.5% of 50 times the minimum wage (New Monthly Ceiling: KZT 63,750). 

These changes aim to ensure fair compensation, address cost-of-living concerns, and fortify the social security framework. Employers and employees should familiarize themselves with the updated regulations for seamless compliance.