Kazakhstan minimum wage rise to cost businesses 430 billion tenge

First Deputy Minister of National Economy Azamat Amrin told a government briefing that raising the minimum wage from 85,000 to 110,000 tenge will increase the total wage fund in Kazakhstan by about 430 billion tenge. According to him, employers must set pay at no less than 110,000 tenge for workers who currently earn 85,000 tenge. The President said in his Address to the Nation that the increase would affect about 1.8 million people.

The Ministry of National Economy's preliminary estimates put the wage fund increase at about 426 billion tenge, which the ministry views as an additional burden on business. Amrin said that a larger wage fund also means higher deductions, so companies will pay about 60-68 billion tenge less in corporate income tax. The calculations include only companies that currently pay the minimum wage. In his assessment, the increase should not significantly affect production costs or lead to a noticeable rise in prices.

The minimum wage increase will also affect social payments. The maximum child care benefit for children up to one and a half years old is currently 40% of seven times the minimum wage, and after the increase it will be about 308,000-310,000 tenge. The minimum wage was last raised on January 1, 2024, from 70,000 to 85,000 tenge.