In what cases the employer must pay compulsory occupational pension contributions to employees?
In accordance with the Law On Pension Provision in the Republic of Kazakhstan, compulsory occupational pension contributions (COPC) are set at 5% of an employee's monthly income. The accrual of COPC is carried out by employers at their own expense, in favor of employees employed in work with hazardous working conditions, whose professions are provided for by the list of industries, works, professions of employees (see Decree of the Government of the Republic of Kazakhstan dated December 31, 2013 No. 1562).
In case of exclusion from the list of hazardous working conditions, confirmed by the results of attestation of production facilities, the payment of compulsory occupational pension contributions by employers is not carried out,
COPC are the compensation of the employer for hazardous working conditions and it is the employer who implements them at his own expense in favor of the employee. This type of pension contributions was introduced in the republic from January 1, 2014.
In accordance with paragraph 10 of the Pension Rules of the Unified Accumulative Pension Fund, approved by the Decree of the Government of the Republic of Kazakhstan dated September 18, 2013 No. 984 (hereinafter referred to as the Pension Rules), the UAPF approved an agreement on pension provision at the expense of the COPC, which establishes the rights, obligations and liability provided for by the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, as well as other features of the legal relationship between the UAPF, the individual for whom the COPC are transferred (the beneficiary of pension benefits at the expense of the COPC), and the agent.
COPC are paid in the national currency of the Republic of Kazakhstan no later than the 25th day of the month following the month of income payment. Business entities applying a special tax regime - in the manner and within the time limits stipulated by the tax legislation of the Republic of Kazakhstan.