Wages - The Times Of Central Asia

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minimum wage

Kyrgyzstan Retains Lowest Minimum Wage in the Eurasian Economic Union

Kyrgyzstan continues to have the lowest minimum wage among member states of the Eurasian Economic Union (EAEU), according to Eurasian Economic Commission (EEC) data cited by local media. As of March 2026, Kyrgyzstan’s minimum monthly wage was about $38. By comparison, the minimum wage stood at $337 in Russia, $292 in Belarus, $174 in Kazakhstan, and $199 in Armenia. Analysts say Armenia’s economy is broadly comparable in scale to Kyrgyzstan’s. According to official statistics, the minimum wage in Kyrgyzstan has risen far more slowly than in other EAEU countries and remains significantly below both the country’s average salary and the official subsistence minimum. Data from Kyrgyzstan’s National Statistical Committee show that the subsistence minimum currently stands at around $105. Meanwhile, minimum wages in Russia and Belarus have nearly doubled over the past several years. Against this backdrop, the situation regarding average salaries in Kyrgyzstan appears somewhat more positive. According to the EEC, Kyrgyzstan and Belarus recorded the highest rates of average wage growth in the region. Over the past year, average wages in Kyrgyzstan increased by around 10%, while Belarus recorded growth of approximately 9%. Despite this, average wages in Kyrgyzstan remain the lowest among EAEU member states. By the end of 2025, the average monthly salary in Kyrgyzstan stood at approximately $508, compared to $783 in Armenia, $877 in Belarus, and $1,203 in Russia. No data for Kazakhstan were included in the published EEC statistics. Kyrgyzstan’s National Statistical Committee previously stated that nominal wages in the country have roughly doubled over the past five years. Per capita household spending has also increased significantly, which officials say reflects rising consumption levels and gradual improvements in living standards. At the same time, consumer spending continues to account for the largest share of household expenditures in Kyrgyzstan.

Migrant Workers

Over 100 Uzbek Workers in Russia Receive Aid After Months Without Pay

More than 100 Uzbek migrant workers in Russia have received assistance after going without wages and adequate food for four months, according to Uzbekistan’s Migration Agency. The agency said the workers were jointly owed nearly 24 million rubles (about $324,000) and, in some cases, had fallen into irregular legal status. The situation began to improve after the workers contacted the agency for assistance. Following the appeals, the agency’s representative office in Russia worked with legal counsel, while Uzbekistan’s Consulate General sent an official diplomatic note to the relevant authorities. As a result, Russian law enforcement agencies opened a criminal case against the employers under Article 145.1 of the Russian Criminal Code, which covers non-payment of wages. According to the agency, some progress has already been made. A total of 105 workers have received 9.4 million rubles (around $127,000) in unpaid wages. The remaining debt, estimated at 23.9 million rubles, is expected to be paid by May 15. The agency also said that food supplies for the workers have been restored. Those who had lost legal status were assisted in returning to Uzbekistan, and financial support measures have begun. The case was handled in cooperation with Uzbekistan’s diplomatic missions in Russia and Russian law enforcement authorities. Officials said the joint efforts helped address both the financial claims and the humanitarian situation faced by the workers.

Migrant Workers

Uzbekistan Officials Intervene Over Wage Delays for Migrant Workers in Russia

Uzbek diplomats and migration officials have intervened to resolve wage disputes affecting dozens of Uzbek citizens working in Russia’s Tyumen region, according to a report by Dunyo Information Agency. Representatives of Uzbekistan’s Consulate General in Yekaterinburg, together with officials from the Migration Agency, traveled to the city of Tobolsk, where they met with more than 100 Uzbek citizens working temporarily for local companies. The delegation organized an on-site reception, providing legal and consular assistance and clarifying issues related to passport processing and compliance with migration laws. During the meetings, officials also warned workers about the risks of engaging with illegal or extremist groups and reminded them that joining private military companies could lead to criminal liability. A key issue raised during the visit was delayed wage payments. Authorities found that a subcontractor had failed to pay salaries for February and March to 26 Uzbek workers. Following negotiations involving the main contractor and the employer, the companies acknowledged the debt and agreed to settle it. As a result, approximately 2 million rubles (about $24,945) in wages have been accrued and are expected to be transferred to the workers’ bank accounts in the coming days. In addition, the employers committed to repaying outstanding wages to around 80 other Uzbek citizens who had previously left the company without receiving full payment. Officials also inspected living and working conditions and held discussions with employers aimed at preventing similar cases in the future. According to Dunyo, Uzbekistan’s government considers the protection of its citizens abroad and ensuring fair pay for their work a priority. Such outreach visits and rapid interventions are seen as an important tool for strengthening legal protections for Uzbek migrant workers in Russia and addressing their concerns directly on the ground. As previously reported by The Times of Central Asia, Russia expressed its readiness to facilitate the transfer of more than 3,000 Uzbek prisoners to serve their sentences in Uzbekistan, although the process remains constrained by legal limitations.

Economy

Kazakhstan Targets Raising Wage Share of GDP to 40%

The Kazakh government is preparing a series of measures aimed at accelerating wage growth and increasing the overall wage fund, with the goal of raising its share in the country’s GDP to 40%, Prime Minister Olzhas Bektenov announced during an expanded government meeting. According to government estimates, household incomes are currently growing more slowly than the broader economy and corporate profits, including those generated with state support. At present, wages account for roughly 31% of Kazakhstan’s GDP, a figure considered relatively high by Central Asian standards but still below the levels seen in developed economies, where wage funds typically exceed 40% of GDP. Kazakhstan’s GDP growth in 2025 reached $20.1 billion in monetary terms, with the economy expanding at an annual rate of 6.5%, according to official data. To address the income gap, the government is developing a comprehensive package that includes financial, tax, and regulatory incentives for employers to raise wages. The initiative also prioritizes the creation of new, decently paid jobs, upskilling of the workforce, and reducing the financial burden on citizens. Real income growth has been designated a key economic policy priority for 2026. A complementary role will be played by the upcoming Joint Action Program for 2026-2028, developed by the Cabinet, the financial regulator, and the National Bank. The program aims to stabilize the macroeconomic environment and improve public welfare, setting a target of household income growth at a rate of at least 2-3% above inflation each year. According to official statistics, the average monthly salary in Kazakhstan stood at approximately $873 by the end of the third quarter of 2025. However, earlier reports indicated that the minimum wage will remain frozen at $172 in 2026, despite prior commitments to increase it.

Economy

Kazakh Government to Reconsider Minimum Wage Increase No Earlier Than 2027

The Kazakh Cabinet of Ministers does not plan to revisit the issue of raising the minimum wage before 2027-2028, according to Deputy Prime Minister and Minister of National Economy Serik Zhumangarin. Earlier this year, in June, Minister of Labor and Social Protection Svetlana Zhakupova had announced plans to raise the minimum wage from January 1, 2026. At the time, the minimum wage stood at approximately $163, and Finance Minister Madi Takiev indicated that an increase to just over $172 was under consideration. However, in August, Zhumangarin announced that the minimum wage would remain frozen at its current level. Speaking at a government meeting this week, Zhumangarin confirmed that a review of the minimum wage is not scheduled in the near term. “In 2027-2028, the issue of raising the minimum wage will be considered,” he said, presenting a draft program of joint actions by the government, the National Bank, and the Agency for Regulation and Development of the Financial Market (ARDFM) aimed at macroeconomic stabilization and improving the population’s well-being from 2026 to 2028. Under the program, more than 100 investment projects in the manufacturing and agro-industrial sectors are to be launched annually to support employment. “The program’s priority is to increase real incomes by promoting high-quality, sustainable economic growth and reducing inflation. To this end, a set of tools has been developed across key areas of economic policy,” Zhumangarin stated. To curb inflation, the government plans to saturate the domestic market with local goods, strengthen pricing oversight, and tackle monopolistic practices. Zhumangarin also outlined plans to enhance transparency on e-commerce platforms. This includes requiring disclosure of commission fees included in the cost of goods, as well as optimizing commission structures for trading platforms and intermediaries. To protect consumers, dual pricing will be introduced, listing prices both with and without installment plans. A separate priority will focus on boosting long-term economic productivity through improvements in labor efficiency, effective employment, and capital modernization. These efforts aim to reduce the persistent gap between GDP growth and wage growth. Between 2026 and 2028, the government expects real income to grow by at least 2-3% annually. “At the end of the first nine months, nominal wage growth stood at 10%, but real growth was negative due to inflation,” Zhumangarin said at a briefing. “Our task is to ensure that inflation does not erode incomes. If we aim for real income growth of 2-3%, this means nominal growth must exceed inflation by that margin in the coming years.” As previously reported by The Times of Central Asia, inflation has significantly eroded household income this year, driven by Kazakhstan’s reliance on imports, rising utility rates, and an increased tax burden.

Inflation

Inflation in Kazakhstan “Eating Away” at Incomes: Authorities Struggle for Answers

Inflation in Kazakhstan is continuing to erode household incomes, driven by the country’s dependence on imports, rising utility tariffs, and increasing tax burdens. While living costs soar, wages remain sluggish, forcing many families to allocate most of their earnings to essentials such as food, medicine, and utilities. Rising Prices, Stagnant Wages As of August, annual inflation had reached 12.2%, and experts warn it could climb even higher by year’s end. The National Bank’s original 2025 inflation target of 5% has proven to be overly optimistic. “This is a negative, sad trend. It shows that not enough measures have been taken. That it was necessary to tighten monetary policy earlier. It was necessary to contain inflation risks,” said Ramazan Dosov, chief analyst at the Association of Financiers of Kazakhstan. The National Bank’s base rate, its primary instrument for controlling inflation, currently stands at 16.5%. Financier Rasul Rysmambetov notes that the rate is unlikely to be lowered in the near future. However, high interest rates also reduce access to loans for businesses, curbing investment. Despite frequent government statements about inflation-control measures, experts argue that artificial price regulation offers only temporary relief. In his September 8 address to the nation, President Kassym-Jomart Tokayev acknowledged the severity of the issue, stating, “Today, the main problem is high inflation, which is eating away at economic indicators and household incomes. There is no ready-made solution to this problem.” Tokayev called for coordinated efforts across government agencies. At the beginning of 2025, Kazakhstan’s average monthly salary was reported at 424,200 KZT (about $800), reflecting a 24% increase over the previous year. However, this figure obscures wide regional disparities. In many areas, typical monthly salaries range between 180,000 and 230,000 KZT ($330-430). Per capita income reached 194,000 KZT ($362), up 17% from early 2023, but not enough to keep pace with inflation. According to kazkredit.kz, average families now spend up to 95% of their income on day-to-day expenses. In 2023, 52% of income went toward food; that figure has risen to more than 54% in 2025. Halyk Finance, cited by inbusiness.kz, reports that more than half of Kazakhstan’s workers earn below the national average. Salary data reveals stark income inequalities across sectors, with higher wages in mining, finance, and telecommunications, and significantly lower wages in agriculture, healthcare, and public administration. Analyst Arslan Aronov notes that although nominal wages increased by 11.3% in the second quarter of 2025 compared to the same period in 2024, real wage growth was effectively zero due to inflation. Public sentiment reflects the strain. Economists at KZTnomika reported a slight easing of inflation expectations in August 2025, but overall confidence in price stability remains low. Eighty-two percent of survey respondents reported rising food costs, with meat and dairy products leading the list. Among non-food items, medicines, clothing, and cleaning products were most frequently cited. For paid services, rising costs for housing, internet, mobile communication, and healthcare were prominent concerns. Background and Analysis Kazakhstan’s struggle with inflation is rooted in both external shocks and structural...