For both small businesses and large companies, employees are nowadays one of the key factors to success. Employing right talent and paying the right salary is therefore very important for any company.
The minimum wage in Kazakhstan
The minimum wage in Kazakhstan is revised annually. It is essential to understand that this amount coincides with the subsistence minimum.
The minimum wage in Kazakhstan is set by the legislation and impacts on the increase of pension payments, subsidies and benefits for low-income citizens. The significant growth of the minimum wage in 2019 is expected to increase the income of public sector workers by 35 %. This will affect the following categories of workers: medical personnel, social workers, teachers, civil servants, military.
The average wage in Kazakhstan
The average wage in Kazakhstan may differ significantly depending on:
- The region
- The specialization
- The education
- The company
Besides, the wage is affected by the employee experience. According to statistics, the average wage differs from 40 000 KZT in small towns to 150 000 KZT in large cities. The wage is also differentiated by the place of work. In large companies (especially, in foreign ones) the employee’s income is twice higher than that of the state institution worker. The salary of managers is 4-5 times higher than the salary of ordinary workers.
In 2018 medium wage was generally announced as 85 600 KZT and it was 5,5% above the year of 2017. In 2019 it is expected to grow about 28-35% with the inflation rate 5,3%.
Average wage by regions
The salaries in the capital of the country are traditionally higher, as well as in oil regions of the Republic. In the city of Aktau, for example, the salary of an ordinary worker of the oil industry starts from 150 000 KZT and the high qualified specialists receive about 400 000 KZT, including annual bonuses and excluding the income tax and social contributions.
Average wage by industry and specialty
The lowest wages are received by the workers of the following fields:
- Agriculture
- Forestry
- Fishery
The average wage in these fields is about 94 000 KZT and it is more than 40% lower than the average wage in Kazakhstan. The highest salaries are paid to specialists in the financial and insurance sector. Generally, their income can twice exceed the average wage in the Republic.
The official nominal wage is 162 751 KZT, but in people’s opinion, it does not reflect the reality.
Speaking about wages by the specialties, the salaries of state institution employees (teachers, doctors, civil servants, etc.) are the smallest. Their salary depends on different factors (qualifications, length of service, number of hours, etc.). With the minimum wage growth in 2019, a serious income increase in these categories of citizens is expected.
In addition to regular salaries, various bonuses are paid, both monthly and at the end of the year. There is a number of different bonuses, but most of them are established at the enterprise level and are not mandatory.
The state policy in the field of employment
The state authorities have decided to focus on the development of the social sphere. The wage increase in state areas is believed to attract qualified personnel. Practically, in the hiring process, the priority is given to those people who have graduated from the local educational institutions. This is expected to encourage young people to stay at home country. There is a program of assistance in getting a job for young professionals.
The specialists in high demand now are those in the field of:
- IT-sphere
- Energy
- Oil industry
- Mining industry
The highest salaries are in the water and air transport sector, but it is not so easy to get there.
Social guarantees
Pension payments consist of three parts:
- basic
- solidarity
- accumulative
The first two parts are paid by the state. The basic part varies depending on the length of service of the employee (until June 2018 it was equal for all – 15 274 KZT). If the experience is more than 33 years, the basic part is equal to the subsistence minimum.
It is noteworthy that Kazakhstan has not yet approved a single retirement age. It can range from 58 to 63 years. At the same time, women of some professions can retire at 45 and men at 50.
In addition, there are payments for disability, loss of breadwinner and others. Special assistance is provided to families whose average income is less than two subsistence minimums.
Level of living
The general level of living of Kazakhstan is approximately the same as that of Belarus. The level of income and expenditure of the population are approximately the same.
Summary
To describe the overall picture of life in the Republic of Kazakhstan the following indicators should be considered:
| Indicator | Value |
| Minimum wage / subsistence minimum | 28 284 KZT |
| Average wage | 150 000 KZT |
| Nominal wage | 162 751 KZT |
| Median wage | 85 600 KZT |
| Inflation rate | 5,3% |
| Unemployment rate | 4,8% |
The level of living in the country is gradually increasing. The socially-oriented policy reduces the outflow of citizens from the country and it is a good driver of further development.
Learn more on our blog:
Ready to start?
Submit your inquiry today and our Payroll consultant will come back to you with advice on how to start:
Leave a Reply