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For what purpose was the decision to implement ECPC made?

The idea of introducing compulsory employer pension contributions has been discussed in the country over the past few years. It is laid down in theConcept for further modernization of the pension system of the Republic of Kazakhstan until 2030, adopted back in 2014. In world practice, joint responsibility for pension provision for citizens is distributed between the state, employer and employee. And the participation of the employer in the payment of pension contributions is a classic model for implementing the principle of social responsibility of business for the pension provision of employees. With the introduction of the ECPC, individual pension savings of working Kazakhstanis will be replenished by new employer’s compulsory pension contributions, which will provide workers born in 1975 and later with a higher level of pensions, given that this category does not have joint work experience before 1998 or their length of service in the solidarity system is insignificant. Their pension will consist of three components: a basic pension from the state, a funded pension from their contributions to the Unified Accumulative Pension Fund, and a conditionally funded pension from contributions from employers. The norm will come into full effect in 2028, when compulsory contributions reach 5 percent.
Дата публикации
12 февраля 2024
Дата обновления
12 февраля 2024
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