Social protection - The Times Of Central Asia

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Social protection

How Kazakhstan Is Using Big Data to Reshape Its Social Protection System

Kazakhstan is accelerating its transition to a digital model of social protection, integrating government databases and introducing algorithmic oversight to improve the targeting of welfare payments and reduce corruption risks. In spring 2026, the merger of databases between the Ministry of Labor and tax authorities was completed, marking a key stage of the reform. Authorities view this process not only as a technological upgrade but as a shift in the principles governing interaction between the state and citizens. Historically, the country’s system of distributing social benefits has faced challenges related to the misuse of funds. In 2020, the Supreme Audit Chamber identified violations in the implementation of the “Enbek” employment program, resulting in significant budget losses. In subsequent years, auditors continued to record similar cases. A report for 2023-2024 noted that targeted social assistance was being received by citizens who concealed their actual incomes. According to anti-corruption authorities, approximately $50 billion has been allocated to social support over the past five years, of which around $6.5 billion was used inefficiently. The lack of transparent oversight enabled abuses, including fictitious employment schemes and payments to so-called “ghost recipients.” A turning point came with the introduction of digital oversight. Since 2024, Kazakhstan has been integrating databases and automating processes. According to official reports, the implementation of digital tools helped prevent financial violations amounting to approximately $45 billion in 2025 alone. At the core of the system is the transition to the international ISO 20022 standard, enabling real-time data processing. Since 2026, algorithms have been automatically assessing citizens’ eligibility for social benefits without the involvement of officials, significantly reducing opportunities for fraudulent claims. One example is a grant program for low-income citizens to start businesses, with grants of up to approximately $3,800. Funds are now transferred directly to suppliers, while transactions are monitored by tax authorities. If inconsistencies are detected, payments are automatically canceled. Similar mechanisms are being applied in subsidized employment programs. The system is also integrated with the “Social Wallet” project and the digital tenge platform. Payments are programmed through smart contracts, restricting their use to predefined purposes such as purchasing food, medicines, or paying utility bills. In addition, algorithms track changes in the income of unemployment benefit recipients. If commercial activity is detected, payments are automatically terminated. Despite these advances, experts warn of potential risks. International experience shows that such systems can both improve efficiency and lead to errors. In Denmark, algorithms are used to provide proactive support, automatically offering benefits when life circumstances change. In Australia, however, a similar system wrongly accused citizens of welfare fraud, triggering lawsuits and a political crisis. Analysts note that the effectiveness of digital systems depends on their design: they perform better when focused on identifying those in need, rather than solely detecting violations.

Social protection

“We Can’t Help You”: How Turkmenistan’s Ministry of Justice Handles Citizens’ Complaints

A recent public reception at Turkmenistan’s Ministry of Justice has highlighted the formal and often unproductive nature of interactions between citizens and state institutions in the country. On January 10 the ministry held a legal consultation session, officially scheduled to run from 9:00 a.m. to 12:00 p.m. In practice, however, visitors were not admitted until 10:00 a.m. According to Chronicles of Turkmenistan, more than 50 citizens attended the reception, many of whom had previously appealed to state agencies multiple times. They arrived with letters, formal statements, and supporting documentation in hand. Entry was granted in groups of three. The commission included representatives from the Ministry of Justice, the Prosecutor General’s Office, the Supreme Court, and the Bar Association. Each individual was given no more than five minutes. Despite the format suggesting legal support, the outcome for most attendees was discouragingly uniform. After speaking with 38 participants, journalists reported that all had received the same response: “We can’t help you.” Several attendees stated that officials did not even review the documents submitted with their complaints. As a result, nearly all who came seeking redress left empty-handed. Many expressed hopelessness, stating that they had no viable path to resolve their issues, and that government institutions had effectively denied them access to justice. The Times of Central Asia previously reported on the broader challenges faced by Turkmen citizens in navigating bureaucratic procedures and, in particular, how elderly residents endured long waits at social security offices. Although the process appears straightforward on paper, in practice it becomes a burdensome ordeal, especially given the government’s continued refusal to index pensions and social benefits. Missing a single appointment can result in suspended payments, with delays of up to six months before back payments are processed.

Social protection

Turkmen Pensioners Decry Government’s Refusal to Index Payments

The Turkmen government's decision to forgo its customary annual increase in pensions and benefits in 2026 has sparked sharp discontent among elderly citizens. Pensioners, arriving to have their documents updated for the year, have discovered that payment amounts remain unchanged and many are not hiding their anger. Since January 2, retirees have been visiting social security offices where pension amounts are officially recorded in their books. In previous years, this annual procedure was typically accompanied by an indexation of around 10%, helping to offset inflation and rising prices. That practice has been discontinued. Pension and social benefit levels remain frozen, despite the ongoing increase in living costs. The decision not to index pensions was announced in autumn 2025 during a parliamentary session, where honorary elder Yazmyrat Atamyradov proposed a complete halt to increases in salaries, pensions, state benefits, and scholarships. He claimed the “happy people” of Turkmenistan already enjoy a steadily improving standard of living, making additional financial support unnecessary. The response from the public has been stark. Pensioners are openly criticizing the government and President Serdar Berdimuhamedov, not only in social services offices but also in markets, on public transport, and in other public places. Many older citizens recall a similarly severe decision under the country’s first president, Saparmurat Niyazov, when pensions were abolished entirely. Witnesses from that time report that some elderly individuals, left without support, were pushed to the brink of survival. The current cost-of-living crisis has exacerbated the backlash. Over the past year, food prices have surged. Beef has risen from $17.40-$20.30 to $31.90-$33.40 per kilogram, and local apples have jumped from $4.35 to $7.69 per kilogram. As of January 1, 2025, the minimum pension in Turkmenistan was set at $159.50. That figure remains unchanged in 2026, despite the deepening economic pressures faced by retirees.

Social Spending

Kazakhstan Government to Cut Social Spending

The Kazakh government plans to reduce budgetary spending on social support. Prime Minister Olzhas Bektenov told parliament that only citizens who are objectively unable to work will continue receiving state assistance. According to the Cabinet of Ministers, approximately $16.9 billion was allocated to the social sector in 2024, representing 37.3% of total budget expenditures. Of that amount, $10.2 billion went toward social security and direct assistance to the population. In 2025, social spending is projected to rise to $18.4 billion, or 37.2% of the overall budget, with social payments continuing to represent a significant portion. “The social sector places a very heavy burden on the budget: benefits, payments, and various support measures account for about 60% of the total budget. For many years, these expenditures exceeded 40% of the republican budget. When forming the budget for the next three years, we reduced them to 38%,” Bektenov said during his remarks in parliament. He added that the government will continue its optimization efforts. Only citizens who are unable to work for objective reasons will qualify for state support, while those capable of working are expected to support themselves. According to the Ministry of Labor and Social Protection, as of October 1, 2025, targeted social assistance (TSA) was being provided to 274,400 individuals from 51,000 families. The total amount disbursed thus far in 2025 was $47 million, out of a planned $190 million for the full year. TSA is distributed quarterly to low-income families, with employable recipients required to participate in state employment programs. As previously reported by The Times of Central Asia, Deputy Prime Minister Serik Zhumangarin stated that the government would revisit the issue of increasing the minimum wage no earlier than 2027.

Migrant Remittances

Why Tajikistan Cannot Give Up Remittances from Migrant Workers

Labor migration is no longer a temporary phenomenon in Tajikistan. Remittances from migrants now account for nearly half of the country’s GDP, supporting families, sustaining the national budget, and helping preserve social stability. But at the same time, the country has found itself dangerously dependent on external factors, factors that directly impact the welfare of millions of citizens. Thirty Years On Since gaining independence, Tajikistan has undergone a transformation in which labor migration has become a systemic feature of society. While the country remained predominantly agrarian during the Soviet era, over the past three decades, the word “Tajik” has become closely associated, particularly across the post-Soviet space, with low-skilled labor abroad. This shift traces back to the 1990s, when Tajikistan, unlike its Central Asian neighbors, failed to restructure its economy and descended into civil war. With factories shuttered, jobs scarce, and political instability rampant, tens of thousands of people left the country. The early waves of migrants were mainly working-age men. Some educated professionals moved to Europe or the US, others to Kazakhstan, but most went to Russia, where cultural and linguistic ties remained strong and the labor market was more accessible. Even after the peace agreement, migration continued and even intensified. Today, more than 30 years later, the annual outflow of the working-age population remains consistently high. The Economy on the Migrant “Needle” Official data record up to 600,000 migrant departures per year. However, the real number is likely higher: many migrants do not return home between seasons, and some have settled permanently in Russia. Since the war in Ukraine began in 2022, migration routes have shifted again, some now leave for Europe and the United States, sometimes under refugee status. According to the World Bank, in 2024, remittances from migrant workers reached $5.8 billion, representing 45.3% of Tajikistan’s GDP, a global record. Over the past 17 years, this figure has dropped below 30% only three times. For the last three years, remittances have consistently made up nearly half of the national economy. A Hushed-Up Contribution Despite the critical role of labor migration, the topic is largely avoided by the Tajik authorities. As far back as 2013, then-head of the National Bank Abdujabbor Shirinov refused to disclose statistics, stating that “this issue could take on a political connotation.” In 2019, his successor, Jamshed Nurmahmadzoda, advised journalists “not to focus on migrants’ money.” Today, the National Bank attributes the lack of up-to-date data to “technical difficulties” linked to electronic and online transfers. Meanwhile, the Ministry of Labor has not published migration figures for Russia in two years, citing discrepancies with Russian data. As a result, one of the main sources of economic stability remains unacknowledged at the official level. What Keeps the Budget Afloat Tajikistan’s economy remains structurally fragile. Its export potential is 3-4 times smaller than its import demand. Foreign currency earned through trade covers only about a quarter of the country’s imports, the rest is financed by remittances. These funds support domestic consumption: families use them to buy...

Labor

New Labor Code Comes Into Force in Kyrgyzstan

A new Labor Code has been implemented in Kyrgyzstan, introducing significant changes to labor relations in the country. The updated code includes provisions for remote work, digital labor records, and streamlined labor contracts. Additionally, relations between employees and employers will now be regulated by a separate law, “On Social Partnership.” President Sadyr Japarov signed the new Labor Code into law following its approval by Kyrgyzstan’s parliament. The reforms aim to modernize the nation’s labor practices by accelerating the digitalization of processes. Under the new code, paper labor contracts are no longer mandatory. Instead, electronic contracts will suffice for official use and inspection purposes. One of the notable provisions in the code allows for remote and hybrid work arrangements. “The labor contract, by agreement of the parties, may establish both remote work and combined remote work,” states the law, marking a shift toward more flexible employment practices. The reforms also address labor books, which traditionally served as a lifelong record of an individual’s work history. Citizens now have the option to use digital labor books, though paper versions remain valid. However, the exact platform or system for storing the digital data has yet to be determined. Another change eliminates the longstanding practice of shifting days off to accommodate public holidays. Previously, the Ministry of Labor, Social Security, and Migration could declare surrounding weekdays as non-working days. Under the new code, this practice has been discontinued, reducing the total number of non-working holidays. The Labor Code introduces several worker protections. Employers are now required to provide lump-sum benefits in the event of labor-related injuries or the death of an employee. A single penalty rate of 0.25% has been established for late payments of wages, vacation pay, severance pay, and other compensation. Employees will also have a three-year limitation period to file wage-related disputes. Additionally, the code prohibits the employment of pregnant women and nursing mothers in hazardous or physically demanding jobs, further strengthening workplace protections for vulnerable groups. These reforms are expected to streamline labor relations, improve worker protections, and align Kyrgyzstan’s labor policies with modern international standards.