Kazakhstan Rejects Mandatory Wage Hikes, Pushes Tax Incentives Instead
Serik Zhumangarin, Kazakhstan’s Deputy Prime Minister and Minister of National Economy, has spoken out against mandatory wage indexation for all workers. Instead, he highlighted new tax measures designed to encourage higher salaries through financial incentives.
The government has already put these policies into action, aiming to influence payroll growth without direct intervention. Zhumangarin confirmed that the state will not impose rules on how private companies set wages. He stressed that businesses must retain control over their own salary policies.
To push for higher pay, the government has adjusted the Tax Code. One change applies a tax to firms with a payroll fund exceeding 100 million tenge. Another raises the minimum tax deduction to 30 times the minimum wage.
These steps, now in force, focus on creating financial incentives rather than enforcing strict wage controls. The goal is to encourage companies to increase salaries without government interference. The new tax rules target large payrolls and adjust deductions to push for wage growth. Companies will face higher costs if they maintain low salaries, but the government will not dictate pay policies directly. The measures are now active, with businesses expected to respond to the financial incentives.
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