The Kazakh government has paid 2.2 trillion tenge ($4.7 billion) in pensions since the beginning of 2023, with 675.2 billion tenge ($1.5 billion) allocated for the basic pension and 1.525 trillion tenge ($3.2 billion) for the solidarity pension, Turanews.kz reports.
As of September 1, 2023, there are 2.3 million pensioners in Kazakhstan. The average total pension is 120,937 tenge ($258), including 83,072 tenge ($177) for the solidarity pension and 37,865 tenge ($81) for the basic pension.
The state basic pension payment is assigned to each recipient individually, taking into account their length of participation in the pension system. The length of participation includes service developed in the solidarity system as of January 1, 1998, as well as periods for which mandatory pension contributions (MPCs) were paid.
If the length of participation in the pension system is 10 years or less, and also in its absence, the size of the basic pension is equal to 60% of the subsistence minimum. For each year in excess of 10 years, its size increases by 2%. For example, with 20 years of participation, the basic pension will be 80% of the subsistence level. With 30 or more years of experience, it is set at the maximum amount – 100% of the subsistence level.
If MPCs are transferred to the Unified Accumulative Pension Fund several times in one month, the period of participation in the accumulative system is one month.
Thus, the more regularly and in full MPCs are paid, the larger the size of the basic pension payment upon reaching retirement age.
The size of old-age pension payments depends on the length of service as of January 1, 1998 (at least 6 months are required) and the average monthly income received in the pre-retirement period.
The Kazakh government is committed to providing a secure retirement for its citizens. The increase in pension payments in 2023 is a welcome development, as it will help to improve the quality of life for Kazakh pensioners.
