In Kazakhstan, employers are legally obligated to provide a comprehensive benefits package to their employees. These benefits are designed to ensure social security and financial stability for workers.

Social Insurance

Social insurance in Kazakhstan is a multi-pronged system that covers various employee needs. Employers contribute to these programs alongside employee contributions, ensuring a safety net for workers. The key social insurance benefits include:

• Pension: Kazakhstan operates a multi-tier pension system. Employers contribute 10% of an employee's gross salary to a mandatory pension fund, providing retirement benefits.
• Disability and Survivor Pensions: The state pension fund offers disability and survivor pensions to eligible employees or their dependents in case of disability or death while employed. The benefit amount depends on the length of service and salary.
• Healthcare: Social insurance also contributes to a basic level of healthcare coverage for employees.

Paid Time Off

Kazakh employees are entitled to various forms of paid leave to ensure rest and recuperation:

• Annual Leave: Employees receive a minimum of 24 calendar days of paid annual vacation, excluding official holidays.
• Public Holidays: There are 12 public holidays throughout the year, offering additional paid time off.
• Sick Leave: Employees are entitled to a minimum of 3 days of paid sick leave per year.
• Maternity Leave: Mothers are entitled to a generous 126 days of paid maternity leave, with 70 days before the due date and 56 days after childbirth (increased to 70 days for multiple births). Paternity leave is not mandated by law.
• Parental Leave: Employees can take unpaid parental leave to care for a child under the age of one.
• Leave for Life Events: Leave is also granted for significant life events such as marriage and bereavement.

Additional Considerations

Employees working in hazardous conditions may be entitled to additional vacation days.

In Kazakhstan, employers often provide supplementary benefits to attract and retain top talent. These optional benefits can significantly enhance an employee's compensation package and improve their overall well-being.

Health and Wellness

Employers often provide health insurance plans that go beyond the basic state-provided healthcare. These plans can cover medical expenses, hospitalization costs, and additional services like dental and vision care. Life insurance is another benefit that employers may offer as part of their benefits package, providing a financial safety net for the employee's beneficiaries in case of death. Some companies are increasingly offering wellness programs that encourage healthy habits and preventive care. These programs can include gym memberships, fitness subsidies, or on-site fitness facilities.

Financial Security

Larger companies may offer access to voluntary benefits like personal accident insurance, critical illness insurance, or even COVID-19 coverage at discounted rates through group enrollment.

Work-Life Balance

To cater to the needs of a diverse workforce, some employers allow for flexible work arrangements such as remote work options or flexible working hours. While Kazakhstan mandates minimum Paid Time Off (PTO) by law, some employers might offer more generous PTO policies, including additional vacation days or sick leave.

In Kazakhstan, the health insurance system is a dual approach, consisting of Mandatory Social Health Insurance (MSHI) and the option for private health insurance provided by employers.

Mandatory Social Health Insurance (MSHI)

MSHI is a program that all employers in Kazakhstan are legally obliged to enroll their employees in. This program provides basic health coverage for a variety of medical services.

Employers contribute 3% of the employee's monthly salary towards MSHI, capped at a specific amount tied to the minimum wage. MSHI covers various medical services, including hospitalization, outpatient care, emergency services, maternity care, and certain medications.

Private Health Insurance

In addition to MSHI, some employers in Kazakhstan may offer private health insurance plans as a supplementary benefit. These private plans can provide additional coverage beyond the scope of MSHI, such as dental and vision care, access to a wider network of healthcare providers, or higher quality amenities in hospitals.

Employees typically have the option to enroll in these employer-sponsored plans by paying additional premiums. While MSHI provides basic health coverage for all employees in Kazakhstan, employer-sponsored private health insurance plans offer a way to enhance the overall health benefits package.

Kazakhstan's retirement system is a multi-tiered structure, offering a combination of mandatory and voluntary plans to ensure financial security for retirees.

Mandatory Pension System

The mandatory pension system in Kazakhstan includes the Basic State Pension, Solidary Pension, and Mandatory Pension Contributions.

• Basic State Pension: All Kazakh citizens are entitled to a basic state pension upon reaching retirement age. The amount depends on the length of participation in the pension system and ranges from a minimum to a maximum threshold set by the government each year.

• Solidary Pension: This component is paid to citizens with at least six months of work experience before 1998. The amount is determined by an individual's average monthly salary and total years of service.

• Mandatory Pension Contributions: Both employers and employees contribute 10% of the employee's monthly salary towards these mandatory pension benefits. These contributions are deposited into the Unified Accumulative Pension Fund (UAPF).

Voluntary Pension Plans

In addition to the mandatory pension system, there are also voluntary pension plans available.

• Individual Voluntary Pension Contributions: Employees can voluntarily contribute additional funds on top of the mandatory contributions to their UAPF accounts. This allows them to potentially increase their retirement income.

• Employer-Sponsored Plans: Some employers might offer voluntary pension plans as part of their benefits package. These plans can be established through private pension funds and offer employees the opportunity to save for retirement beyond the mandatory system.

Choosing a Pension Fund

Employees have the right to choose a specific UAPF to manage their mandatory pension contributions. Several UAPFs operate in Kazakhstan, each with its own investment strategy and fees. It's advisable for employees to research and compare different UAPFs before making a selection.