Mandatory employee accident insurance is one of the employer\u2019s obligations in Kazakhstan. This requirement applies to both legal entities and individual entrepreneurs, and all employees, including administrative staff, are subject to insurance. Employers must conclude an insurance contract in a timely manner, correctly determine the insured amount, and comply with the deadlines established by law. Failure to have a mandatory insurance contract may result in administrative liability: in 2026, the fine for large businesses reaches KZT 4,325,000.<\/p>\n
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The employer\u2019s obligation to insure employees against accidents occurring in the performance of their employment duties is established by Subparagraph 14 of Paragraph 2 of Article 182 of the Labour Code of the Republic of Kazakhstan. The employer must also submit information about the concluded insurance contract to the authorized state labour authority. The object of mandatory insurance is the property interest of an employee whose life or health has been harmed as a result of an accident, if it has led to the determination of the degree of loss of occupational capacity or death. An insured event is an incident that occurs while an employee is performing employment duties and is associated with exposure to a harmful or hazardous workplace factor. Its consequences may include an occupational injury, sudden deterioration in health, or poisoning of an employee that results in loss of occupational capacity, an occupational disease, or death.<\/p>\n
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The employer acts as the policyholder. The obligation to conclude an insurance contract applies to both legal entities and individual entrepreneurs. All employees, including administrative staff, are subject to insurance. An exception is provided for employees of state institutions: their insurance is not regulated by the provisions of the Law of the Republic of Kazakhstan \u201cOn Mandatory Insurance of Employees Against Accidents in the Performance of Their Employment (Official) Duties.\u201d Having a voluntary employee insurance contract does not exempt an employer from the obligation to conclude a mandatory insurance contract.<\/p>\n
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An employer that has commenced operations must conclude an insurance contract with an insurer within the first ten days of the month following the month in which operations commenced. The contract is concluded for 12 months from the date it enters into force. If an insured event occurs during this period, the contract does not terminate, and insurance coverage remains in effect for the entire established term. If the employer operates for less than 12 months, the contract is concluded for the duration of such operations. Small and medium-sized businesses may submit an application for an insurance contract electronically through the e-government web portal during state registration.<\/p>\n
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The insured amount is determined by the contract but cannot be less than the annual payroll fund of all employees as of the date the contract is concluded. When calculating the annual payroll fund, each employee\u2019s monthly income is taken into account in an amount not exceeding 10 minimum monthly wages, calculated for 12 months. The insurance premium is calculated by multiplying the insured amount by the insurance rate. The rate depends on the occupational risk class established for the relevant type of economic activity. It ranges from 0.12% for the first occupational risk class to 2.96% for the 22nd class. If the calculated insurance premium is less than one minimum monthly wage, the premium is set at one minimum monthly wage, while the insured amount is increased proportionally.<\/p>\n
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The compensation procedure depends on the degree of loss of the employee\u2019s occupational capacity. If the degree of loss is from 5% to 29% inclusive, the employer compensates for the harm in accordance with labour legislation. If the loss of occupational capacity ranges from 30% to 100%, monthly insurance payments are made by the insurer. Additional expenses arising from damage to health are reimbursed within the limits of 500 to 1,000 monthly calculation indices, depending on the established degree of loss of occupational capacity. In the event of an employee\u2019s death, the insurer reimburses the person who arranged the burial for expenses in the amount of 100 monthly calculation indices. In 2026, this amount is KZT 432,500.<\/p>\n
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Liability for failure to have a mandatory employee insurance contract is established by Paragraph 2 of Article 230 of the Code of the Republic of Kazakhstan on Administrative Offences. In 2026, the fine for individuals is 10 monthly calculation indices, or KZT 43,250. For small businesses, non-profit organizations, officials, private notaries, and private enforcement officers, the fine is 160 monthly calculation indices, or KZT 692,000. Medium-sized businesses are subject to a fine of 400 monthly calculation indices, or KZT 1,730,000. For large businesses, the fine is 1,000 monthly calculation indices, or KZT 4,325,000. Since January 1, 2024, compliance with the requirement for employers to conclude mandatory insurance contracts has been monitored by the local labour inspection authority. Employers must therefore ensure that a valid contract is in place and that the established requirements are fulfilled in a timely manner.<\/p>\n
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Companies and individual entrepreneurs with employees must monitor the validity of their mandatory insurance contracts and ensure that they are concluded within the required timeframes. Insurance must cover all personnel, including administrative staff. When concluding a contract, employers must take into account the annual payroll fund and the occupational risk class applicable to their type of economic activity. Voluntary insurance does not replace the mandatory insurance contract. Employers should also consider how obligations are allocated in the event of an insured accident: where the loss of occupational capacity is from 5% to 29% inclusive, compensation is paid by the employer, while for a loss of occupational capacity from 30% to 100%, monthly payments are made by the insurer.<\/p>\n
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Mandatory employee insurance is part of a broader range of employers\u2019 personnel, payroll calculation, and legal obligations. FChain helps companies organize their work with employees and supports businesses in matters related to operating in Kazakhstan. Depending on the company\u2019s needs, FChain specialists can provide the following services:<\/p>\n
If your company needs to review its personnel processes, organize payroll calculations, or obtain legal support on matters related to employer obligations, FChain specialists will help select an appropriate support format based on your business needs.<\/p>\n
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