"On the advantages and prospects of development of compulsory social insurance" 

- Over the years of independence Kazakhstan has built its own system of population protection. What is the role of compulsory social insurance?

- The level of social security at each stage of the country's development was determined by its economic and financial capabilities. The state guarantees social protection of the population, accompanying a person at all stages of his life, starting from birth. Successful reforms have become a practical embodiment of the strategic course of development of Kazakhstan, defined by the Leader of the Nation N.A. Nazarbayev.

Over the years of independence Kazakhstan has built a multi-level model of social security system corresponding to the principles of a market economy, ensuring the distribution of responsibility for social security between the employer and the employee at the basic, mandatory and voluntary levels.

At the basic level, irrespective of their employment activity, the citizens of Kazakhstan receive social assistance at the expense of the state budget when social risks arise.

The transition to new social questions corresponding to the international practice has predetermined the introduction since January, 1, 2005 the compulsory social insurance in Kazakhstan as an additional level of social protection of working citizens at occurrence of social risks.

Financial resources of compulsory social insurance system in Kazakhstan are formed at the expense of social deductions paid by employers, individual entrepreneurs and persons engaged in private practice.

Monthly social contributions are paid by employers on behalf of their employees from the income up to seven times the minimum wage. At the same time, social contributions are not withheld from the employee's wages as mandatory pension contributions, but are paid at the expense of employers and self-employed persons.

In case of social risks, the recipient of social assistance from the State Social Insurance Fund (hereinafter - SSIF) is a member of the system, and in case of his death, a family member who was dependent on him. Thus, the working population in case of occurrence of social risks receives state social allowance from the budget and social payments from SSIF.

Between 2005 and October 2021 some 6 million persons received benefits totalling 1.8 trillion tenge from the SSIF. Of the average sum, 86.3 per cent were welfare payments for loss of income in connection with pregnancy and childbirth, adoption of a newborn child or children or care for a child up to one year of age, 6.6 per cent were payments for disability, 4.3 per cent for loss of breadwinner and 2.7 per cent for loss of employment.

- What changes were there during the 16 years of the compulsory social insurance system's existence?

- Since 2005, payments were made from the SSIF for three social risks: disability, loss of breadwinner and loss of work.

Since 2008 within the framework of the Message of the Head of State "New Kazakhstan in the new world!" of 28 February 2007, benefits for loss of income in connection with pregnancy and childbirth, adoption of a newborn child or children and childcare until the age of 1 year were introduced for the protection of women.

With a view to social protection of the population, a new version of the Law on “Compulsory social insurance” has been introduced since 1 January 2020, which provides for a stronger link between work record and the amount of social payments, as well as an increase in the various coefficients used in determining payments.

As a result, the average size of payments from the SSIF was increased by 68% for disability, by 43% for loss of breadwinner, and by 88% for loss of work.

Thus, timely and full payment of monthly physical persons' deductions by employers provides employees with adequate social payment at occurrence of social risks.

It should be noted that social payment in case of disability is carried out until a person regains ability to work or reaches retirement age. And social payment in case of loss of breadwinner - until coming of age of children who remained dependent or until 23 years of age of students who are studying on the full-time residual form of education.

To ensure that long-term social benefits are not devalued by inflationary processes, each year they are increased from the SSIF assets. Starting in 2022, the longterm benefits will increase by 5 percent.

- What are the benefits and prospects of compulsory social insurance?

- Providing accessible and convenient public services for the population is the main priority of social security. Whereas in the past one had to collect various certificates in order to receive social assistance, with the development of digital technology payments can be made on a "one-stop-shop" basis, i.e. when applying to one state body one can apply for a social payment to another relevant body.

For example, when establishing the degree of disability in a medical and social institution, it is also possible to apply for state social benefits from the budget and social payment from the SSIF.

Also, if a person has lost his job, he can register as unemployed when applying to the Employment Center or through the "Electronic Labor Exchange", and there he can apply for unemployment benefits from the SSIF.

In the presence of electronic digital signature, it is possible to apply for the distribution of payments for care of a child under 1 year and for loss of work without leaving home through the web portal of e-government (egov.kz).

Also, the terms of public services for the distribution of social benefits were reduced.

One of the important tasks of the Address of the Head of State K.K. Tokayev to the people of Kazakhstan dated September 2, 2019 "Constructive public dialogue - the basis of stability and prosperity of Kazakhstan" is the implementation of the concept of "Hearing State", which promptly and responds to all constructive requests of citizens.

With the development of information systems of state bodies and organizations, nowadays services for the appointment of social benefits from SSIF also pay in proactive form, by obtaining the consent of the applicant with the confirmation of the SMS message through the subscriber device of cellular communication.

In the future, when social risk occurs, a person will not apply for social funds. In this way, a person will not have to prove their rights to social support.

As a whole, compulsory social insurance in Kazakhstan has become the most important and important element of social and economic relations, providing additional social protection of employed population of Kazakhstan.

The main priorities of the state policy of our country over the years of independence are the development of human capital, improvement of the standard of living and quality of life of the population.