On pension provision in the Republic of Kazakhstan

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Important about the status of the document: the downloadable file contains one of the earlier versions of the Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan". Since 2023 the Social Code of the Republic of Kazakhstan has been in force, into which the provisions on pension provision were transferred, and the law itself ceased to be in force. The document can be used for familiarization and for understanding how the pension system developed, but for practical decisions check the current version of the Social Code and subordinate acts at adilet.zan.kz.

What pension legislation regulates

Kazakhstan's pension legislation determines who receives pension payments and under what conditions, from which sources they are financed, how pension contributions are paid, how pension savings are held and recorded, and what rights contributors have. The purpose of the regulation is to provide citizens with an income after the end of their working life and to share responsibility for pensions among the state, the employer and the employee.

What Kazakhstan's pension system consists of

The country's pension system is multi-tiered. In general terms it includes:

  • Basic pension payment — paid from the state budget on reaching pension age; its amount depends on the length of participation in the pension system.
  • Solidarity pension — assigned from the budget for employment service accrued before 1998, when the country moved to a funded system.
  • Mandatory pension contributions (MPC) — withheld from the employee's income and credited to their individual pension account in the Unified Accumulative Pension Fund (UAPF).
  • Mandatory occupational pension contributions (MOPC) — paid by the employer for employees engaged in work with harmful (especially harmful) working conditions.
  • Mandatory employer pension contributions (MEPC) — paid by the employer from its own funds for the benefit of employees.
  • Voluntary pension contributions (VPC) — a person can make them themselves or through the employer in order to increase future savings.

Who the legislation applies to

  • Employees under employment contracts — contributions for them are withheld and transferred by the employer as a tax agent.
  • Employers — they are obliged to calculate, withhold and transfer pension contributions correctly and on time, and also to pay contributions at their own expense in the cases provided for by law.
  • Sole proprietors and persons in private practice — they pay contributions for themselves.
  • Pension recipients — the legislation determines the procedure for assigning pensions, and the amount and timing of payments.

The role of insurance companies: the pension annuity

Pension savings can be received not only from the UAPF on a set schedule but also through a pension annuity contract with a life insurance company (LIC). In this case the savings are transferred to the insurance company, and it assumes the obligation to make regular payments, as a rule for life. The right to conclude such a contract arises when the conditions established by legislation are met — on reaching a certain age or with a sufficient amount of savings.

When choosing a pension annuity it is important to compare:

  • the amount of the regular payment that the company is ready to offer for the amount of your savings;
  • the procedure for indexing payments;
  • the existence of a guaranteed payment period and the terms for heirs;
  • the financial stability and licence of the insurer.

For more on life insurance programs, see the life insurance section. You can estimate the cost of risk programs in the life insurance calculator.

What matters in practice

  • Check that contributions are received. A statement from your individual pension account can be obtained from the UAPF or through state electronic services. If the employer is not transferring contributions, that is a reason to contact it, and then the authorized bodies.
  • Keep track of changes. The pension age, contribution rates, the thresholds for sufficiency of savings and the procedure for using them are reviewed from time to time.
  • Take into account the possibility of using savings. Legislation provides for the use of part of the savings above the sufficiency threshold for certain purposes, for example to improve housing conditions or for medical treatment.
  • For employers — observe the deadlines. Late transfer of contributions entails accrual of late-payment interest and liability.

Frequently asked questions

Can I rely on the downloadable file when calculating a pension?

No. The file contains an outdated version. For calculations and for dealing with state bodies, use the current version of the Social Code and the clarifications of the authorized bodies.

How does a pension annuity differ from payments from the UAPF?

Payments from the UAPF are made on a set schedule until the savings are exhausted, while a pension annuity with an insurance company, as a rule, provides for lifetime payments on the terms of the contract.

If you are considering a pension annuity or savings life insurance, you can get a consultation from a broker.