Mandatory Employer Pension Contribution Rate Increased from 2026

Mandatory Employer Pension Contribution Rate Increased from 2026

From January 1, 2026, the mandatory employer pension contribution (MEPC) rate in Kazakhstan has been increased to 3.5% of an employee’s income. The increase is being implemented gradually: 1.5% in 2024, 2.5% in 2025, 3.5% in 2026, 4.5% in 2027, and 5% in 2028.

 

What MEPC Is and When It Applies

Since January 1, 2024, all employers are required to participate in the formation of employees’ pension savings by transferring MEPC to the Unified Accumulative Pension Fund (UAPF). This measure has added a new employer-funded component to Kazakhstan’s pension system.

 

Who MEPC Is Intended for and the Purpose of the Changes?

The introduction of MEPC is aimed at providing pension coverage for employees born in 1975 and later, taking into account the absence or insignificance of work experience before 1998 required for a solidarity pension. In the future, their total pension will consist of a basic pension funded by the state, an accumulative pension based on mandatory employee contributions, and a conditional accumulative pension formed through employer contributions recorded in the UAPF.

 

Who Is Exempt from MEPC and Who Oversees Compliance?

Employers are exempt from paying MEPC for employees born before January 1, 1975, individuals of retirement age, persons with permanent disabilities of groups I and II, military personnel, and equivalent categories. Oversight of the timely and complete payment of MEPC is carried out by the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan.

 

How MEPC Payments Are Made and Key Restrictions

Payments funded by MEPC will be made for life; however, they will cease if the recipient leaves Kazakhstan for permanent residence or changes citizenship. In such cases, individuals may withdraw only their personal pension savings, while funds paid under MEPC remain in the UAPF, as they are not the property of the contributor and are recorded in conditional pension accounts. MEPC-funded savings are not inheritable and are intended for pension payments under the solidarity (distribution) principle. Therefore, contributions paid for individuals who lose Kazakhstani citizenship or pass away are redistributed among remaining participants.

 

Initiatives Under Discussion

Experts have previously proposed transferring MEPC-funded savings to individual pension accounts and extending MEPC coverage to all employees regardless of age. These initiatives are currently under discussion.

 

How FChain Can Support Businesses

FChain helps companies correctly implement MEPC-related changes and reduce the risk of errors in calculations and transfers. We provide guidance on applying requirements to different categories of employees, assist in building transparent accrual and control processes, and support preparation for potential audits. This enables employers to comply with legislation while saving time and resources for accounting and HR teams.

For professional support, please contact us at almaty@f-chain.com or via WhatsApp at +7 771 214 1820

Social Tax in 2026

Prepared by: Moldir Mukhtar

Business Development Specialist

FChain Kazakhstan

January 14, 2026