Incomes of 6.7 million Kazakhstanis will grow in 2022

An increase from January 1, 2022 in the size of the subsistence minimum (hereinafter referred to as the MP) and the monthly calculation index (hereinafter referred to as the MCI) will lead to an increase in the incomes of 5.1 million people receiving pensions and benefits from the state budget, and an increase in the minimum wage (hereinafter referred to as the MCI) ) will provide income growth for 1.6 million people working in all sectors of the economy.

To establish the amount of social payments made from the state budget to support citizens, the PM and MCI are used in Kazakhstan. The size of the subsistence minimum and the monthly calculation index are set annually, taking into account the forecasted inflation rate.Thus, the Government is taking regular measures to prevent a decline in the standard of living of the population.

So, in 2020, due to the epidemiological situation in the country, the size of the PM and MCI were increased twice, by a total of 10%. This year, they were indexed by 5%, as a result, the size of the PM and MCI amounted to 34,302 tenge and 2,917 tenge, respectively.

From January 1, 2022, it is planned to index the value of the subsistence minimum and the monthly calculation index by 5%.

As a result, the size of the subsistence allowance will be 36,018 tenge, and the MCI – 3,063 tenge. For the fulfillment of social obligations of the state in the republican budget for 2022,  4 trillion KZT is provided, including  190.4 billion KZT for the indexation of pensions and all social benefits. This will lead to an increase in the income of 4.2 million people, of which: – about 2.3 million pensioners, who will receive an increase in the size of solidarity pensions by 7% (ahead of the inflation rate by 2%) and the basic pension payment by 5% for a total amount of 138.3 billion tenge; – 1.9 million recipients of social benefits, the amount of which will also be increased by 5% for a total of 52.1 billion tenge. Also, an increase in the subsistence allowance will have a positive effect on the income level of more than 900 thousand people receiving targeted social assistance.

In pursuance of the instructions of the Head of State, from January 1, 2022, the size of the minimum wage will be increased from the current 42.5 thousand tenge to 60 thousand tenge. Thus, the growth of the minimum wage will amount to 41%.

In accordance with the Labor Code, employers will be required to provide employees with wages at a level not lower than the minimum wage. This measure will lead to an increase in cash incomes of 1.6 million people working in all industries at enterprises of various forms of ownership.

First of all, the increase in the minimum wage will affect the “low-paid” workers.

Secondly, employers who use the minimum wage indicator when setting the wage level will also revise the wages of other categories of workers.

In addition, the Government is taking consistent measures to increase the level of wages of public sector employees.

So, since 2020, the salary of teachers will be gradually increasing, by 2023 it will increase 2 times. In 2021, a phased increase in the salaries of medical and social workers began, as a result, within 4 years, their salaries will also double.

From 2022, the salaries of those categories that were not affected by the increase will increase. These are archivists, librarians, museologists, foresters, technical personnel, etc., about 588 thousand people. Preparatory work is currently underway.

In general, wages are increasing for about 1.2 million civil servants. At the same time, according to the results of the third quarter of this year. nominal incomes of the population in comparison with the same period of the last year increased by 15.4%, and taking into account inflation – by 6%. In the third quarter of 2021, the average salary reached 243,667 tenge, which is 19% higher than in the third quarter of the previous year. At the same time, in real terms, the growth of wages, taking into account inflation, amounted to 9.8%.