If the employer granted a loan to the employee for several months, is this granted loan an advance payment? Can the salary be considered as paid in advance, consequently, deducted monthly from the salary more 50% or is such loan a deduction and shall not be more than 50 % from the salary?
In accordance with the article 113 of the Labor Code of the Republic of Kazakhstan, salary is established and paid in cash in the national currency of the Republic of Kazakhstan at least once per month no later than the first decade of the next month. Payment date of salary is provided in the labor contract.
Paying the salary, the employer shall be obliged to notify each employee in writing or electronically every month about components of salary due to it for the relevant period, amount and basis of the deductions, including information about deducted and transferred obligatory pension contributions, and also about total payable monetary amount.
Issue on salary payment “in advance” shall be regulated by the terms of collective agreement or other internal acts of the company (with due consideration to the opinion of the employees).
In accordance with paragraph 3 of article 115 of the Labor Code of the Republic of Kazakhstan, amount of monthly deduction shall not be more than fifty percent of the salary due to the employee, i.e. 50% of its salary shall be saved in case of deductions from the salary by several enforcement orders, and also in cases, stipulated by the laws of the Republic of Kazakhstan and this article of the Code.
Also, please be informed that in accordance with p.4 of article 60 of the Law of the Republic of Kazakhstan “On legal acts”, explanations are without binding legal effect and serve as guidelines.