Social contributions are paid to the State social insurance fund in the amount of 3.5% of the employee's income at the expense of the employer, as well as the income of an individual entrepreneur or a person engaged in private practice.
The income from which social contributions are paid cannot be lower than the minimum wage (in 2019, 1 MW is equal to 42,500 KZT, the minimum amount of social contributions is 1,488 KZT per month). The maximum income with which to pay social contributions shall not exceed 7 times the size of the minimum wage (in 2019 – 297 500 KZT).
Mandatory pension contributions in the amount of 10% are paid from the income of employees to the Unified accumulative pension fund.
The income from which mandatory pension contributions are paid cannot be lower than the minimum wage (in 2019 the minimum amount of mandatory pension contributions – 4 250 KZT per month) and should not exceed 50 times the size of the minimum wage (in 2019-2 125 000 KZT).
Income from which social contributions and mandatory pension contributions are not paid shall be determined by the relevant Rules* approved by the Government of the Republic of Kazakhstan. Since January 1, 2019, on behalf of the Head of the state to reduce the tax burden of employees with income up to 25 MCI, paragraph 1 of article 341 of the Tax code of the Republic of Kazakhstan was supplemented by subparagraph 49), according to which the taxable income of an employee not exceeding 25 times the size of the monthly calculation index (in 2019 - 63 125 KZT) is excluded from the income of an individual subject to taxation in the amount of 90% of such income (PIT (Personal income tax) is 143 KZT).
At the same time, in order to ensure social protection of this category of workers, the amounts paid at the expense of own funds of employers (individual entrepreneurs, persons engaged in private practice) of social contributions and the amounts paid from the income of employees of mandatory pension contributions remain at the same level.
The relevant regulatory amendments are provided in the draft resolution of the Government of the Republic of Kazakhstan "On amendments and additions to some decisions of the Government of the Republic of Kazakhstan", developed by the Ministry of labor and social protection of the population of the Republic of Kazakhstan in the implementation of the Law "On amendments and additions to some legislative acts of the Republic of Kazakhstan on employment issues" dated December 26, 2018 № 203-VI, which in accordance with the Regulations** will be submitted to the Government of the Republic of Kazakhstan in February this year. At the same time, these amendments will apply to relations arising from 1 January 2019.
For example, the income of the employee is 63 125 KZT:
- the amount of 10% of mandatory pension contributions (from which social contributions are not paid) is 6 312.5 KZT (63 125 * 10%);
- amount of social contributions - 1 989 KZT (56 812,5 * 3,5%).
Therefore, with the income received 63 125 KZT per month, mandatory pension contributions are - 6 312.5 KZT and social contributions – 1 989 KZT.