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Economy

Kazakhstan Labor Ministry Increases Pressure on Employers Paying “Gray” Salaries

Kazakhstan’s Ministry of Labor and Social Protection has drafted legislation aimed at eliminating the widespread practice of paying employees off the books, known locally as “gray” salaries, Minister Svetlana Zhakupova announced this week. According to ministry estimates published earlier this summer, approximately 30% of Kazakhstan’s employed population fails to contribute to the Unified Accumulative Pension Fund (UAPF), a clear indicator that they may be receiving unreported wages. Data from the Bureau of National Statistics shows that in the second quarter of 2025, 9.3 million people were employed across the country. Of these, 7.1 million were salaried employees (76.8%) and 2.2 million were self-employed (23.2%). This suggests that more than 3 million workers may be receiving wages outside the official system, avoiding both income tax and social contributions. Targeting the Shadow Economy The ministry plans to focus first on those who make no contributions at all. “We have cases where highly qualified employees officially receive the minimum wage of 85,000 KZT (about $159),” Zhakupova said. “To avoid taxes, employers declare the minimum wage on paper and pay the rest in cash.” This practice, she added, creates striking wage disparities among employees with the same qualifications and roles. “In some instances, workers in identical positions earn between 229,000 KZT ($426) and 1.2 million KZT ($2,200), depending on the employer,” Zhakupova noted. These discrepancies are particularly acute in Kazakhstan’s mining and metallurgical sector. Digital Oversight and Industry Agreements To address the issue, the ministry is negotiating industry-wide wage agreements and requiring companies to declare their staffing structures. A digital tool for this purpose is available on the enbek.kz platform. “About 20 to 25 major organizations, including several under our jurisdiction, have already submitted their staffing schedules in a pilot project,” said Zhakupova. She believes the initiative will help ensure a more equitable distribution of company profits. “We’ve seen cases where salaries have risen, yet labor productivity has not. That contradicts basic economic logic. Our digital system identifies such ‘red zones’ for inspection,” she explained. Legislative Timeline The draft law is currently under interagency review and has received support from both the government and the presidential administration. It is expected to be submitted to Kazakhstan's parliament, the Mazhilis, for consideration in the near future. In the meantime, the ministry has begun flagging suspicious labor contracts, particularly those listing highly skilled workers, such as mechanical engineers, at or near the minimum wage. More than 1.1 million people in Kazakhstan currently earn wages at or below the legal minimum. “When we see such contracts, it's clear these companies are operating in the shadow economy,” Zhakupova said during a recent government briefing. “Inspectors are now actively working with such employers.” As The Times of Central Asia previously reported, the government has also decided to freeze the minimum wage in 2026, despite earlier pledges to raise it.

minimum wage

Kazakhstan to Freeze Minimum Wage in 2026 Despite Earlier Promises

Kazakhstan will maintain its current minimum wage of 85,000 KZT per month (approximately $157) in 2026, Deputy Prime Minister and Minister of National Economy Serik Zhumangarin confirmed at a recent press conference. This announcement contradicts earlier statements made in June by Minister of Labor and Social Protection Svetlana Zhakupova, who indicated that the government intended to raise the minimum wage from January 1, 2026. Finance Minister Madi Takiev had even suggested a possible increase to just over 90,000 KZT ($166). However, Zhumangarin stated that the proposed adjustment has been scrapped. “We currently have no plans to increase the minimum wage. As of today, it remains at 85,000 KZT, and we are not considering an increase at this time,” he said. Zhumangarin noted that while pensions and benefits are indexed annually to inflation, the government has allocated 800 billion KZT ($1.4 billion) in the 2026 budget to cover these costs. Takiev added that while calculations had been made for a potential increase, “given the current situation,” the decision was made to leave the wage unchanged. The minimum wage was last raised in January 2024, from 70,000 KZT ($135 at the time) to its current level. Some members of parliament have called for a broader review of the minimum wage, the minimum subsistence level, and the structure of the official food basket. In response to a reporter’s question, Zhumangarin acknowledged that he himself could not live on 85,000 KZT per month under current market conditions but stressed that the issue must be approached cautiously. According to the Ministry of Labor, approximately 170,000 people in Kazakhstan currently earn the minimum wage, while another 160,000 earn around 100,000 KZT monthly. As of the first quarter of 2025, the total number of employed individuals in the country stood at 9.3 million. Over the summer, AMANAT parliamentary faction leader Yelnur Beisenbayev criticized government statistics, particularly the official average salary figure of 423,000 KZT ($830). “In our country, three million people earn around 200,000 KZT, of whom 1.8 million live on the minimum wage of 85,000 KZT. So the question arises: who earns 423,000? I believe the government calculates it like this: if Asan earns 1 million KZT, and Yessen and Usen earn 100,000 each, then the average among them is 400,000,” he remarked.

Healthcare

Kazakh Doctors Among Lowest Paid in Economy

As Kazakhstan marks Medical Workers' Day, celebrated annually on the third Sunday of June, new data highlights the challenging financial reality for those in the healthcare sector. According to a recent report by Energyprom.kz, medical professionals remain among the lowest-paid workers in the country. Healthcare Among Lowest-Paid Sectors In the first quarter of 2024, the average monthly nominal salary in Kazakhstan’s “Health and Social Services” sector stood at 312,800 tenge (approx. $605), according to the National Statistics Bureau. This figure is 26.1% lower than the national average across all economic sectors. Healthcare ranks among the bottom five sectors for wages, joined by agriculture (248,900 KZT / $481), culture and arts (284,900 KZT / $551), and education (302,400 KZT / $584). Utility services also report low salaries at around 286,000 KZT ($553). This is not a new trend: the healthcare sector has remained at or near the bottom of the wage rankings for over two years. In 2021, it ranked tenth from the bottom. By contrast, the mining industry leads with an average salary of 981,400 KZT ($1,898), followed by IT (859,800 KZT / $1,663) and finance and insurance (855,500 KZT / $1,654). Post-Pandemic Stagnation While healthcare salaries surged during the COVID-19 pandemic, growing 20-30% annually in 2020-2021, wage growth has since slowed markedly. Since 2022, real income growth has remained modest, peaking at 2.3%, with some quarters seeing declines of up to 4.6%. Since 2019, nominal wages in healthcare have more than doubled, rising from 133,500 KZT ($258) to 315,400 KZT ($610). Yet, once inflation is factored in, the gains appear far less significant. Analysts stress that nominal wages only provide a partial picture. In 2023, the median salary in healthcare was 250,700 KZT ($485), compared to a national median of 285,700 KZT ($553). The modal (most common) wage in healthcare was even lower. Income Disparities Within the Profession There is considerable wage variation among medical specialties. In 2024, the average monthly salaries were as follows: Therapists: 460,200 KZT ($890) Pediatricians: 425,900 KZT ($824) Surgeons: 505,700 KZT ($978) Cardiologists: 475,000 KZT ($919) At the upper end of the spectrum, an interventional arrhythmologist, who performs pacemaker implantations, earns around 1.1 million KZT ($2,128) per month. Embryologists (IVF specialists) and cardiac surgeons also command high salaries, averaging 860,100 KZT ($1,664) and 768,800 KZT ($1,487), respectively. Conversely, specialists in support roles often earn significantly less. Parasitologists receive around 200,000 KZT ($387), and occupational health physicians average 210,000 KZT ($406). Other low-paid professions include massage therapists, nurses, forensic medical experts, and microbiologists.

Economy

Kazakhstan Leads Central Asia in Average Salaries

Kazakhstan continues to hold the top position in terms of average wages among Central Asian countries, according to a study conducted by analysts at Ranking.kz. Wage Comparisons Across Central Asia Data from the Interstate Statistical Committee of the CIS reveals that as of September 2024, Kazakhstan's average nominal monthly salary stood at $817.20. This figure is nearly twice as high as in Uzbekistan ($437.80) and Kyrgyzstan ($411.20). Tajikistan trails significantly behind, with an average salary of just $242.80 - 3.4 times lower than Kazakhstan’s. Notably, the wage gap between Kazakhstan and Tajikistan would have been even greater if not for a significant increase in Tajik wages. Over the past year, nominal salaries in Tajikistan rose by 24.9%, while real wages increased by 21.1% - the highest growth rate in the region. In comparison, wage growth in Kazakhstan, Kyrgyzstan, and Uzbekistan was more moderate. Data on salaries in Turkmenistan remains unavailable as the country has not updated its wage statistics since 2023. Minimum Wage Comparison Kazakhstan also leads the region in terms of minimum wages. In 2024, the minimum wage in Kazakhstan is 85,000 KZT ($181.10). By contrast: In Uzbekistan, the minimum wage is $89.40. In Tajikistan, it is $54.90. In Kyrgyzstan, it is just $28.30. In Turkmenistan, the official minimum wage is reported as $402.90, based on the fixed exchange rate of 3.5 TMT per dollar. However, due to the country’s reliance on a "black market" exchange rate (approximately 19 TMT per dollar), the actual minimum wage is estimated to be much lower, around $74.20. Sectoral Analysis When analyzing nominal salaries by economic sector, the highest wages in the region are found in finance and insurance. In Kazakhstan, the average salary in this sector exceeds $1,700 - three times higher than in Tajikistan ($561.90). Workers in Kazakhstan's mining industry also enjoy high incomes. In Uzbekistan and Kyrgyzstan, the financial sector and IT industry offer the highest salaries. Meanwhile, in Tajikistan, relatively high wages are reported in the manufacturing and service sectors. Inflation and Its Impact Inflation remains a key factor affecting the real purchasing power of wages across Central Asia. According to the CIS Interstate Statistical Committee, the most significant price increases in 2024 occurred in the economically developed countries of the region - Kazakhstan and Uzbekistan. Uzbekistan: Inflation reached 7.7% in October 2024. Kazakhstan: Inflation stood at 6.6%. Kyrgyzstan: Inflation was lower at 4.2%. Tajikistan: The region’s lowest inflation rate was recorded at 3.2%. These inflation rates directly influence the population's purchasing power, even in countries with higher nominal salaries like Kazakhstan and Uzbekistan. Kazakhstan’s leadership in wages and minimum income underscores its position as the most economically advanced country in Central Asia. However, inflation and significant disparities in income distribution between sectors and regions remain challenges. While countries like Tajikistan are showing progress in wage growth, the overall gap in earnings between Central Asian nations continues to highlight economic inequalities within the region.

Legislation

Kyrgyzstan Proposes to Fine Employers for Paying Wages in Cash

The Kyrgyz Ministry of Economy has proposed introducing fines for legal entities for paying salaries in cash. The relevant draft law has already been submitted to the parliament, the Jogorku Kenesh, for consideration. According to the law, wages shall be paid in non-cash form except in cases of force majeure, emergency, or disaster, as well as certain types of activities or in certain territories of the country. Employers who fail to fulfill the requirement to pay wages in non-cash form can be fined 5,000 soms ($59.2). The new article, proposed to the Code of Offenses, aims to combat the shadow economy and encourage the transition to non-cash payments. In general, the country has already developed several measures for this purpose. Among them is the installation of online cash registers in retail outlets and service enterprises. In 2022, about 65,000 online cash registers were installed in the country, a significant step towards transparency of financial flows. In addition, the government is utilizing tax incentives and developing an e-invoicing system, which helps track transactions and increase tax revenues.

salary Healthcare Economy Legislation Social

Kyrgyzstan Raises Doctors’ Salaries

The First Deputy Minister of Health of Kyrgyzstan, Mederbek Ismailov has newly announced that medical workers' wages will be raised by 10 -50 percent from September this year. Selected specialists will also receive bonuses of up to 20,000 KGS ($220). "The ministry will work directly to raise medics' salaries. We will review tables of staffing and workloads over the past two years and depending on results, may raise salaries," commented a ministry spokesman, adding that the average doctor's salary will rise to 35,000 KGS ($400) after the increase. Local MPs, however, expressed their dissatisfaction with the government's decision, deeming the rises in medical workers' salaries inadequate. "The health minister promised us that doctors would receive 80,000 KGS ($900) each," complained MP Vinera Raimbachayeva.