Starting from January 1, 2025, Kazakhstan has increased the mandatory pension contribution rate for employers (OPVR) from 1.5% to 2.5%, reports a correspondent from the Kapital.kz business information center, citing data from the Unified Accumulation Pension Fund (UAPF).
It is important to note that from 2024, all employers began participating in the formation of pension savings and transferring mandatory pension contributions (OPVR) to the UAPF on behalf of their employees.
“Thus, the accumulation system in Kazakhstan has been supplemented with a new component. According to the Social Code, unlike the 10% mandatory pension contributions (OPV) paid by employees from their income, OPVR is contributed from the employer's own funds. The OPVR rate will increase annually: from 1.5% in 2024, to 2.5% in 2025, 3.5% in 2026, 4.5% in 2027, and reaching 5% in 2028. The income amount considered by the employer for calculating the OPVR must be no less than one minimum wage (MW) and no more than 50 MW established for the corresponding calendar year,” the fund explained.
Employers are exempt from paying OPVR for the following categories of workers: individuals of retirement age, individuals with permanent disability of the 1st and 2nd groups, military personnel and those equated to them, as well as individuals born before January 1, 1975.
Unlike OPV, which is credited to individual pension accounts of employees, OPVR is credited to conditional pension accounts and does not belong to the employees. Employees cannot inherit the savings formed from OPVR. OPVR is intended for pension payments on a solidarity basis. Therefore, OPVR that was previously paid for individuals who subsequently lost their Kazakhstani citizenship or passed away will be redistributed among the remaining participants and will be paid out for life.
“The introduction of OPVR is aimed at providing pension security for employees born in 1975 and later, considering their lack of or minimal work experience before 1998 for receiving a solidarity pension. In the future, their total pension will consist of three components: a basic pension from the state, an accumulative pension from their OPV contributions to the UAPF, and a conditionally accumulative pension from employer contributions,” the fund reminded.