Vice Minister of Labor and Social Protection of the Population Svetlana Zhakupova explained the information on mandatory contributions to the pension fund by individuals.

According to the vice minister, all pension contributions are paid directly from the income earned by citizens. For example, the earned income for an employee of an enterprise is his salary, for an individual entrepreneur it is the income received directly from entrepreneurial activity, for private notaries — the income from the services rendered by them. And for citizens who work on the basis of paid services agreement (civil law contracts) — mandatory pension contributions are paid from the incomes received by them after the performance of these works or services (not from the sale of personal property).

"Ministry of Labor and Social Protection of the Population is always open to dialogue. I would like to the community to cultivate the right messages. In social networks, people write furiously that pension contributions will be deducted from the sale of apartments and cars. It’s absolutely not true. Pension contributions will not be withheld from these incomes. Pension contributions will be withheld only if you have received an income under a service or work contract," she explained.

According to Zhakupova, many employers and individuals, in order to avoid compulsory payments and pension contributions, make civil law contracts, but deliberately do not pay.

"No one thinks about their pensions, that when old age arrives, such people will receive only a basic pension, within 50% to ensure a living wage. But it is not the limit. And if a person has no other income, the state will still come to the rescue, and will pay targeted social assistance, given your income, which you will receive," she said.

As Zhakupova noted earlier, in accordance with the amendments introduced into the Law, since July 14, 2018, individuals receiving income under civil law contracts, as well as lawyers, private judicial executors, private notaries, professional mediators, individual entrepreneurs, have been paying mandatory pension contributions to a single accumulative pension fund from their incomes.

In this regard, Ministry of Labor and Social Protection of the Population prepared a draft Resolution of the Government of Kazakhstan "On Amendments to Certain Decrees of the Government of the Republic of Kazakhstan on Social Security", including setting the procedure and deadlines for payment of mandatory pension contributions by individuals, civil law contracts.

"Today we legally spelled out only civil-law contracts, because there are several of them on performing works and providing services. In order not to clutter up the purview, respectively, this norm was reflected in the Government's resolution. The competence of the Government is spelled out in the law itself. In this resolution, we have already specified that the income for individuals engaged in activities under civil law contracts is the performance of work and the provision of services. In accordance with the regulations, it will be adopted until August 20. The approval procedure is already under way and August 7-10 we will submit it to the Government for consideration," the vice minister said.

In conclusion, Zhakupova noted that the state guarantees pensions to all its citizens in the form of a basic, solidarity pension and a state guarantee for the safety of pension contributions at the inflation level.

"Whatever the inflationary income is, if it is lower than the inflation, the state will pay you this difference. This safety and guarantee are given on all three levels," she added.

“The Qazaq Times”