Minimum Wage
Constitution of the Republic of Kazakhstan guarantees everyone the right to get the minimum wage. The minimum wage in Kazakhstan is set at the national level. It is revised every year by the Law on State Budget.
The minimum wage is determined as a sum per hour and per month. In accordance the Labour Code, the monthly minimum wage should not be lower than the living wage for an employed person and it is paid in proportion to the working time. The minimum wage does not include additional payments and increments, compensation and social benefits, bonuses and other additional payments. The hourly minimum wage can not be less than the minimum monthly wage divided by the average number of working hours, according to the balance of the working time for the relevant calendar year.
Also there is the minimum social standard of minimum monthly wages, that includes:
1) normal working hours per month;
2) work standards of the first grade at the normal conditions of labour.
Payment of salary not in full amount can lead the administrative fine for officials in the amount of 30 monthly calculation indices, for small businesses or non-profit organizations - 60 monthly calculation indices, for medium businesses - 100 monthly calculation indices, for big businesses - 150 monthly calculated indices. If this situation repeats and is connected with using of money for other purposes it will entail criminal liability: a fine of up to 200 monthly calculation indices or correctional works in the same amount, or public works for up to 200 hours, or an arrest for up to 50 days, with deprivation of the right to hold certain positions or engage in certain activities for up to 3 years or without it. The employee has the right to complain to the Labor Inspection or to sue (within a year from the day when the employee learned about the violation of his right).
Sources: §28 of the Constitution of the Republic of Kazakhstan; §104, 160 of the Labour Code; §9 of the Law of the Republic of Kazakhstan ‘About republican budget for 2023-2025’ 01.12.2022 № 163-VII; §12 of the Law of the Republic of Kazakhstan ‘About minimum social standards and guarantees’ 19.05.2015 № 314-V; §87 of the Code of Administrative Offences; §152 of the Criminal code
For detailed minimum wage rates, please refer to the section on minimum wages.
Regular Pay
Labour Code defines wages as remuneration for labour depending on the qualifications of the employee, the complexity, amount, quality and conditions in which work is performed, as well as payments of a compensatory and incentive nature. One of the fundamental rights of a worker is “timely and full payment of wages in accordance with the conditions of the employment contract and the collective bargaining agreement”. The Labour Code establishes guarantees of the labour remuneration which include monthly and hourly minimum wage levels, restrictions on deductions from workers’ wages and procedure and time schedule for payment of wages. Workers’ wages are determined depending on professional skills, complexity/difficulty, quantity and quality of work performed and working conditions. The Labour Code also provides for higher compensation to the workers engaged in heavy work, work with harmful or hazardous working conditions. The amount of such compensation is determined by a collective agreement or employer taking into account industry factors and classifying working conditions on the degree of hazard and danger as defined in a sectoral agreement. Law on National Budget provides only the minimum amount that must be paid to every worker engaged for normal working hours. The maximum hourly or monthly wage is not specified under the law. Remuneration is paid in tenge.
According to the Labour Code, the wage must be paid once every month and not later than the 10th day of the following month. The exact payroll date is established by the employment contract or collective agreement. In the event of coincidence of the payroll date with public holiday or weekend, workers receive wages the day before. Employers are further required to notify a worker in writing or in electronic form (payslip) every month about the components of wage due in the corresponding period, the amount of and grounds for deductions including information about mandatory pension contributions as well as the aggregate sum due for payment. The system of labour compensation must provide for the basic wage (relatively constant part of the wage) to constitute at least 75 per cent of the average monthly wage of employees, excluding one-time incentive payments.
Employers are under obligation to pay full wages to workers in a timely manner, otherwise employers are liable in accordance with the laws of republic. In the case of arrears in payment, employer is required to not only pay the arrears but also the penalty for each day of delay after wages became due. The penalty is calculated on the basis of 1.25 times of the official basic rate of the National Bank of the Republic of Kazakhstan by the day of payment of the employer's debt to the employee.
Deductions from an employee’s wages can be made only for cases specified by the Labour Code. Firstly, deductions are allowed by court judgements. Secondly, deductions from the employee's salary to pay off his debt to the employer can be made in the following cases (with a written notice to the employee):
- advance pay issued on account of wages;
- amount given to an employee for travel or other expenses which was not spent and was not refunded instantly by the employee (and similarly in the case of failure to confirm the cost of trip through documentation);
- reimbursement of employer costs related to employee training (apprenticeship agreement) in proportion to the unfinished term of working out because of early termination of the labour contract;
- the transfer or withdrawal from the annual paid leave;
- in other cases with the written consent of the employee.
If payroll deduction is over several writs of execution, the monthly deduction cannot exceed 50% of wages due to the worker.
Sources: §22, 102, 103, 107, 113-115 of the Labour Code
