Currently, Kazakhstan has a multi-tiered pension system consisting of basic, mandatory and voluntary tiers.

first tier (basic) – basic state pension (republican budget);

second tier (mandatory) – pensions from the solidary system (the republican budget) and the Unified Accumulation Pension Fund at the expense of mandatory pension contributions, mandatory occupational pension contributions;

third tier (voluntary) – payments from voluntary pension contributions.

At the basic level, a basic state pension is paid to citizens and persons permanently resident in the republic when they reach retirement age, irrespective of whether they receive a solidarity and/or funded pension.

More than 2 million people receive the basic state pension.

In order to implement the Message, the method of its appointment has been changed since July 1, 2018. The amount depends on the length of service in the pension scheme.

The new mechanism for allocating a basic pension is as follows:

It is equal to 70% of the minimum subsistence level, with or without 10 years of experience in the pension scheme.

The basic pension is increased by 2% for every year worked over 10 years. For example, with 20 years' experience, the basic pension is 90% of the subsistence level; with 30 years' experience or more, the basic pension is 110% of the subsistence level. 

At the same time, the length of service in the pension scheme includes:

- work experience acquired before January 1, 1998,

- cumulative length of service (actual length of service for which pension contributions have been paid) after January 1, 1998;

- other socially significant periods (taking care of a child under the age of 3 (within 12 years), periods of taking care of a disabled person of the first group, a single disabled person of the second group and a pensioner dependent on outside help, as well as of an elderly person who has reached the age of 80, of a child with disabled persons under the age of 18), the period of residence of spouses of servicemen (except conscripts), employees of special government agencies with their spouses in areas where there was no possibility of their employment in their specialty, but not more than 10 years in total, the period of residence of spouses of employees of the diplomatic services of the Republic of Kazakhstan and international organizations abroad, but not more than 10 years in total.

The new method of allocating the basic pension is in line with the principle of social justice, as it not only improves the financial situation of pensioners, but also serves to increase work motivation and formalize labour relations between citizens. This means that the longer a person works, the more he or she will have a pension (both funded and basic).

Second tier (mandatory):

1) solidarity pensions paid from the national budget if you have at least 6 months' work experience, calculated from January 1, 1998;

2) payments from the Unified Accumulated Pension Fund (hereinafter - UAPF) at the expense of employees' pension savings.

Work experience is only taken into account up to January 1 1998 for the purpose of allocating a solidarity pension, since this is when the transition to the cumulative pension system began, which provides for the transfer of compulsory pension contributions by all employees to a single cumulative pension fund.

For periods of employment after January 1 1998, pensions are paid from the UAPF on the basis of individual pension savings made up of mandatory pension contributions and mandatory occupational pension contributions.

In accordance with the Code, age-related pension payments are calculated on the basis of the average monthly income for any three consecutive years, regardless of interruptions in employment since January 1 1998. At the same time, the average monthly income is determined according to the income on which the compulsory 10% pension contributions to the UAPF were paid.

The Code provides for a limit on the average monthly income accepted for the calculation of a solidarity pension (taken into account within 55 times the monthly calculation index), established annually by the Law on the Republican Budget), as well as a limit on the maximum amount of pension payments (75% of the average monthly income).

In accordance with the Concept of Further Modernization of the Pension System of the Republic of Kazakhstan until 2030, approved by Decree of the President of the Republic of Kazakhstan as of June 18 2014 No. 841, in order to maintain the size of solidarity pensions at an acceptable level, their amounts shall be indexed annually by two per cent above the rate of inflation. 

Pensions from the funded pension scheme

The procedure for processing pension payments has been simplified since October 2018.

The allocation of 3 types of payments (solidarity, basic and funded pensions) is based on one application and one set of documents (the so-called composite service), and the payment of state guarantees is made in a non-public manner (proactive format).

third tier (voluntary) – payments from voluntary pension contributions.

Voluntary pension contributions are money that depositors contribute on their own initiative to the UAPF and/or a voluntary accumulation pension fund for themselves or for third parties. Their amount and payment period are determined by the pension agreement and are charged against voluntary pension contributions.

Voluntary pension contributors are individuals or legal entities who make voluntary pension contributions at their own expense.

In general, the voluntary nature of pension provision encourages people to take responsibility for their own pension provision.

In the Republic of Kazakhstan, the social protection of persons who have lost the ability to work or who have lost their breadwinner is multi-level and consists of the following payments:

First level (basic) - state social benefits for disability or loss of breadwinner from the state budget.

The amount of state social benefits depends on the minimum subsistence level and is therefore reviewed in the context of the change in this value.

The amounts of these state social benefits have been increased by a further 6.5% since January 1, 2025.

second level (mandatory) - social benefits from the State Social Insurance Fund, if the employer has paid social contributions to the State Social Insurance Fund for the injured employee (introduced in 2005).

The purpose of the compulsory social security system is to provide an additional form of social protection for workers in the formal sector against the social risks of disability and the loss of a breadwinner.

The amount of the social benefit depends directly on the worker's income, the degree of general incapacity, the number of dependants of the deceased breadwinner and the length of time the worker has been contributing to the compulsory social security system.

Since January 1, 2025, the amount of social benefits in cases of disability and loss of breadwinner has been increased by 6.5%.

Third level (additional) - provides insurance benefits from an insurance company if the disability is related to an accident at work or an occupational disease, and if the injured employee has a compulsory accident insurance contract in favour of the injured employee. The amount of these payments depends on the salary received before the injury and the degree of professional disability.

Thus, if an employee suffers an accident in the course of his or her work (official) duties, he or she and, in the event of his or her death, his or her dependants are entitled, in addition to state social benefits for disability or the loss of a breadwinner, to other types of benefits provided for by the legislation on compulsory social insurance and workmen's compensation insurance.

The right to appoint a state special allowance according to List No. 1, No. 2 is regulated by the Law of the Republic of Kazakhstan as of July 13, 1999 No. 414 "On Special State Allowance for Persons Who Worked in Underground and Surface Mining or with Particularly Hazardous and Difficult Working Conditions or in Hazardous and Difficult Working Conditions".

Thus, citizens who, as of January 1, 1998, had work experience in accordance with the List No. 1 of industries, jobs, professions, positions and indicators in underground and open-pit mining, work with particularly harmful and particularly difficult working conditions, approved by the Government of the Republic of Kazakhstan, are entitled to receive benefits:

men – upon reaching the age of 53 and with at least 20 years of work experience, including at least 10 years in these jobs;

women – upon reaching the age of 48 and with at least 15 years of work experience, including at least 7 years and 6 months in these jobs.

Citizens who, as of January 1, 1998, had work experience in accordance with the List No. 2 of industries, jobs, professions, positions and indicators with harmful and difficult working conditions, approved by the Government of the Republic of Kazakhstan, are entitled to receive benefits:

men – upon reaching the age of 58 and with at least 25 years of work experience, of which at least 12 years and 6 months in these jobs;

women – upon reaching the age of 53 and with at least 20 years of work experience, including at least 10 years in these jobs.

The amount of the allowance depends on the monthly calculation index approved by the republican budget for the corresponding fiscal year.

Starting from January 1, 2025, the amounts of state special allowances according to Lists No. 1 and No. 2, taking into account the increase, amounted to KZT 37,040 and KZT 32,951, respectively.