The State Social Insurance Fund (SSIF) has been providing an additional level of social security for working citizens since 2005 in cases of certain social risks.
The financial resources of the mandatory social insurance system are formed through social contributions (contributions) paid by payers, i.e., employers on behalf of employees, as well as individual entrepreneurs and self-employed individuals for themselves. At the same time, contributions are not deducted from employees' salaries but are paid by employers from their own funds
Thus, the responsibility of employers is implemented within the mandatory social insurance system
Starting in 2025, individuals receiving income under civil contracts concluded with tax agents, where the subject of the contract involves performing work or providing services (hereinafter referred to as civil law contracts), will also be included in the system.
The taxable base for contributions for individuals receiving income under civil law contracts is the income they receive. The payers of contributions are the tax agents with whom the civil law contracts are concluded.
From 2025, the contribution rate will be set at 5%. Additionally, under tax legislation, taxpayers will reduce the calculated amount of social tax by the amount of contributions paid to the SSIF.
According to the Social Code, the monthly taxable base for social contributions from a single payer must not exceed seven times the minimum wage established by the law on the republican budget for the corresponding financial year (hereinafter referred to as the minimum wage, or MW). If the taxable base for social contributions from a single payer for a calendar month is less than 1 MW, the contributions are calculated based on 1 MW.
In this regard, starting from January 1, 2025, the minimum social contribution will amount to 4,250 tenge (85,000 tenge × 5%), and the maximum will be 29,750 tenge ((7 × 85,000 tenge) × 5%).
The mandatory social insurance system covers approximately 6.9 million working citizens, with more than 1.3 million individuals receiving social benefits from the SSIF annually.
The system provides two long-term social benefits from the SSIF - in case of a worker's loss of general work capacity.and in the event of the worker's death, the family receives a survivor's benefit.These payments are made in addition to the basic state social allowances for disability and survivor benefits funded from the state budget. It is important to note that long-term social benefits are indexed annually by a decision of the Government of the Republic of Kazakhstan.Starting from January 1, 2025, these benefits will increase by 6.5%. Nationwide, benefits will be automatically increased for approximately 81,000 individuals who have lost work capacity and for over 60,000 families who have lost a breadwinner.
As of the results for the first 11 months of 2024, over 101,000 individuals received social benefits for loss of working capacity, amounting to a total of 42.6 billion tenge. Regarding survivor benefits, 67,200 families received payments totaling 30.8 billion tenge.
Two additional types of social benefits are related to motherhood and childhood. Working women receive social benefits during periods of income loss due to pregnancy and childbirth, as well as for childcare until the child reaches one and a half years of age.
For the first 11 months of 2024, 225,600 expectant mothers received maternity and childbirth benefits, amounting to 350.2 billion tenge. Meanwhile, childcare benefits were provided to 657,000 recipients, totaling 367.7 billion tenge.
An essential form of support for participants in the system, regardless of the reasons for job loss, is the unemployment benefit, which is granted provided the individual is registered as unemployed by a Career Center. Over the first 11 months of 2024, 275,700 people received this benefit, amounting to 79.3 billion tenge.
Thus, as of December 1, 2024, more than 870 billion tenge had been disbursed from the State Social Insurance Fund (SSIF).
It should be noted that in the event of social risks, the amounts of payments are calculated individually and directly depend on the timeliness and completeness of social contributions made to the State Social Insurance Fund (SSIF). Therefore, it is important for working citizens to regularly check the actual amounts of social contributions received by the SSIF. This can be done online via the e-government portal egov.kz, mobile applications of second-tier banks, or offline through the branches of the State Corporation “Government for Citizens” (Public Service Centers) or SSIF offices.
Currently, providing government services in a proactive format is becoming increasingly relevant. For example, through the Digital Family Card, if the relevant information is available in government systems, the system participant receives an SMS notification via the unified contact center "1414" regarding their right to receive a payment. Upon providing consent via SMS, the payment is assigned proactively.
When providing social payment services, nearly all necessary information is retrieved from the information systems of government agencies and organizations.
Thus, applications for such payments can be submitted online without leaving home and without the need to provide paper documents.
As of the end of the first 11 months of the current year, over 70% of SSIF government services were provided in electronic format.
Additionally, the SSIF conducts awareness and advisory activities regarding the mandatory social insurance system. Over the first 11 months of the year: 3,534 events were held with labor collectives and the general public, 66 open-door days were organized,18,500 inquiries from individuals and legal entities were addressed.
In general, the primary task of the SSIF is to encourage employment to ensure adequate social payments in case of social risks, as well as to improve the quality and accessibility of government services.
