Kazakhstan's New Pension System: Lifetime Payments Funded by Employers

Kazakhstan is actively developing its pension system, introducing a key instrument to protect workers' interests: mandatory employer pension contributions (MEPC). The main feature of this measure is that funds for citizens' future retirement are allocated from companies' own resources, without reducing the employee's current income.

This norm was introduced to ensure that every working Kazakhstani, especially the younger generation, has a reliable financial safety net. Future pensions are now formed from three sources: the state basic payment, personal savings in the Unified Accumulative Pension Fund (UAPF), and an additional 'conditionally accumulative' component from the employer.

This approach guarantees the worker receives additional lifetime payments. This is particularly important for those born after January 1, 1975, as their pension capital will directly depend on the stability of contributions and participation in the system.

In 2026, the contribution rate is set at 3.5% of an employee's income. The system is being implemented gradually and is expected to reach its target rate of 5% by 2028.

The effectiveness of this mechanism is already being confirmed by results this year. As of April 1, 2026, employers have provided additional pension rights to 5.8 million workers. Since the beginning of the year, 951 billion tenge has been transferred for the benefit of Kazakhstani citizens.

The state has maintained a balance of interests: for businesses, the burden remains at an acceptable level. According to the Tax Code, all company expenses for paying MEPC are deductible from taxable income. This incentivizes employers to maintain transparent social policies and care for their workforce.