What contributions are used to form a pension fund

Citizens pay voluntary pension contributions on their own initiative, in any volume and with any frequency.

Voluntary pension contributions to the unified accumulative pension fund (hereinafter, UAPF) and (or) voluntary accumulative pension fund (hereinafter - VAPF) are made by contributors:

• natural persons in their favor for the expense of their income; 
• natural persons and legal entities in favor of the recipient (third party).

The contributor of voluntary pension contributions has the right to choose the UAPF and (or) VAPF to pay voluntary pension contributions.

The rate of voluntary pension contributions and the procedure for their payment are determined by the contributor (recipient) independently. 

An individual resident of the Republic of Kazakhstan for the costs of paying voluntary pension contributions made in his favor applies a tax deduction. The deduction is applied in the tax period in which the date of payment of voluntary pension contributions falls.

The supporting documents for the application of the tax deduction for voluntary pension contributions are the agreement.

The conclusion of an agreement on retirement benefits at the expense of voluntary pension contributions (hereinafter referred to as the agreement) is carried out with a personal appeal to the UAPF of a contributor (recipient), a contributor and a recipient (when concluding an agreement in favor of a third party) or a legal representative of a minor, a trustee on the basis of a notarized powers of attorney.

The conclusion of the agreement is carried out at the office of the UAPF with a personal appeal of the investor and (or) the recipient/attorney/legal representative.

In the event that an individual (recipient) has a previously opened individual retirement account (hereinafter referred to as the IPA) for accounting for voluntary pension contributions (subject to the change of the contributor under the agreement), re-opening of the IPA intended for accounting for voluntary pension contributions is not carried out, but is concluded a new contract with the IPA number and the agreement opened earlier, with the current date of the conclusion of the new agreement.  

More details can be found on the UAPF website  here. 

The transfer of VPC is made according to the following bank details:

Beneficiary	"Unified accumulative pension fund"
The beneficiary's bank	RSI "National Bank of the Republic of Kazakhstan"
BIC of the beneficiary	NBPFKZKX
IIC of the beneficiary	KZ50147KZT4368609316
BIN of the beneficiary	971240002115
PPC (Payment purpose code)	013

 

Mandatory contributions are paid by: legal entities and individuals; private and individual entrepreneurs; small businesses; peasant and farm enterprises; those who work outside the country, while remaining its citizens.

Mandatory pension contributions (MPC) payable to the UAPF are set at 10% of the monthly income accepted for calculating MPC.

At the same time, the maximum cumulative annual income accepted for calculating mandatory pension contributions should not exceed twelve sizes of the 50-fold minimum wage established for the corresponding fiscal year by the law on the republican budget.

The transfer of MPC is made by agents.

Agents monthly calculate and withhold MPC from the income paid to employees, as well as the income of individuals who have concluded a civil contract, and transfer them to the UAPF.

Persons engaged in private practice, as well as individual entrepreneurs, calculate the MPC for each month of the tax period and transfer them to the UAPF in their favor, indicating the following details of the State Corporation: 

Beneficiary	NJSC "State Corporation" Government for Citizens "
The beneficiary's bank	NJSC "State Corporation" Government for Citizens "
BIC of the beneficiary	GCVPKZ2A
IIC of the beneficiary	KZ12009NPS0413609816
BIN of the beneficiary	160440007161
PPC (Payment purpose code)	010

More details can be found here https://www.enpf.kz/ru/services/self-employed/entrepreneur.php 

Since January 1, 2024, mandatory employer pension contributions (MEPC) have been introduced.

MEPC is paid for citizens born after January 1, 1975. The payment of the MEPC is carried out by employers for their employees at their own expense.

Pension payments due to the MEPC will be paid for life. All types of remuneration in monetary terms and other income are included in the income for calculating the MEPC. 

The objects of the calculation of the MEPC:

• for legal entities – the monthly income of employees, persons with other paid jobs (elected, appointed or approved), accepted for calculating the mandatory pension contributions of the employer;
• for persons engaged in private practice, as well as individual entrepreneurs using the labor of employees, – the monthly income of employees and persons with other paid work (elected, appointed or approved), accepted for calculating the mandatory pension contributions of the employer;
• for the Ministry of Foreign Affairs of the Republic of Kazakhstan (MFA) regarding the personnel of the diplomatic service working in foreign institutions of the Republic of Kazakhstan: employees of the diplomatic service – 100 percent salary, in accordance with the unified wage system based on distribution with fixed monetary payments;
• employees of the diplomatic service – 100 percent salary, in accordance with the unified wage system based on the distribution of the equivalent position of the staff of the diplomatic service of the Ministry of Foreign Affairs with fixed monetary payments;
• for individuals engaged in private practice, as well as individual entrepreneurs, the calculation of mandatory pension contributions from the employer in their favor, which is carried out from the income they receive. Agents, persons with other paid work (elected, appointed or approved), promptly calculate, calculate and pay at their own expense the OPVR in the UAPF.

Agents monthly calculate the MEPC from the amount of the employee's accrued income for the month, indicating the following details of the State Corporation:

Beneficiary	NJSC "State Corporation" Government for Citizens "
The beneficiary's bank	NJSC "State Corporation" Government for Citizens "
BIC of the beneficiary	GCVPKZ2A
IIC of the beneficiary	KZ12009NPS0413609816
BIN of the beneficiary	160440007161
PPC (Payment purpose code)	010

 

In order to protect and compensate for damage to the health of people working in harmful production, the state provides, among other things, such a mechanism as the MPPC.

The MPPC is set at 5% of the employee's monthly income accepted for calculating pension contributions in accordance with the procedure determined by the Government of the Republic of Kazakhstan.

The employer (agent) is the depositor of the MPPC. It is the Agents who monthly carry out the MPPC from the income accepted for calculating the MPPC, based on the amount of the employee's accrued income for the month. Agents carry out MPPC to employees engaged in work with harmful working conditions, whose professions are provided for in the list approved by the decree of the Government of the Republic of Kazakhstan.

MPPC is also paid to employees of production, auxiliary and auxiliary workshops of the organization who are temporarily employed in work with harmful working conditions provided for in the list.

MPPC is carried out to employees whose professions and positions are provided for in the "General Professions" section of the List, regardless of which industries or workshops they work in, unless these professions are specifically provided for in the relevant sections or subsections of the List.

If, based on the results of certification of production facilities for working conditions and periodic mandatory medical examinations, professions of workers with harmful working conditions, employed at least 80% of the working time per month, employers, employee representatives, interested state bodies make reasonable proposals to the authorized labor body for their inclusion in the list.

In the case of exclusion of harmful working conditions, confirmed by the results of certification of production facilities, the payment of the TSA by agents is not carried out.