Over 4 million Kazakhs are enrolled in mandatory pension contributions.

Starting from January 1, 2024, Kazakhstan has begun the phased introduction of mandatory employer pension contributions (OПВР) funded from their own resources for the benefit of their employees, starting at 1.5% this year and increasing to 5% by 2028.

“The payment of OПВР by employers will ensure that employees receive additional pension benefits in old age on a lifelong basis. This measure is aimed at supporting the younger generation of Kazakhstani citizens, whose pension amounts will directly depend on their pension contributions. Their pension will consist of three components: a basic pension from the state, a funded portion from their contributions to the Unified Accumulative Pension Fund, and a conditional accumulation funded by employer contributions,” explained the Ministry of Labor and Social Protection of the Republic of Kazakhstan.

OПВР payments are made by employers only for individuals born after January 1, 1975.

It is important to note that the expenses incurred by employers for OПВР payments are classified as deductions from taxable income according to the Tax Code of the Republic of Kazakhstan. Consequently, the burden on employers will remain at an acceptable level.