Kazakhstan Social Contributions Guide

UAPF — Mandatory Pension Contributions (10% Employee)

The Unified Accumulative Pension Fund (UAPF / БЖЗҚ) is Kazakhstan's mandatory defined-contribution pension system. All employees contribute 10% of their gross monthly salary to the UAPF. These contributions are deducted from gross salary before IIT calculation, providing a tax benefit. The UAPF invests contributions in a diversified portfolio of Kazakh and foreign assets, government bonds, and corporate securities. Each contributor has an individual retirement account, accessible upon reaching retirement age (58 for women, 63 for men as of 2026). Self-employed individuals and sole proprietors may also contribute voluntarily.

OSMS — Mandatory Social Health Insurance (2% EE + 3% ER)

The Mandatory Social Health Insurance (OSMS / МӘМС) system provides universal healthcare coverage to all insured residents. Funding is split between employee and employer:

• Employee contribution: 2% of gross salary deducted at source
• Employer contribution: 3% of gross salary paid by the employer on top of salary costs
• Self-employed: Individuals registered as sole proprietors contribute at a rate based on their declared income
• Government-funded: Contributions for socially vulnerable groups (children, pensioners, unemployed) are funded from the state budget

OSMS contributions entitle insured individuals to a comprehensive benefits package including outpatient care, hospitalisation, emergency services, prescription drugs, and preventive care at participating healthcare providers across Kazakhstan.

Social Tax (9.5% Employer)

Employers in Kazakhstan pay a social tax of 9.5% on the gross salary of each employee. This is an employer-only cost — no amount is deducted from the employee's salary. The social tax funds state social insurance programmes including temporary disability benefits, maternity leave payments, child care allowances, funeral grants, and unemployment benefits. The tax is calculated on the total gross salary without any cap. For companies with significant payroll, the social tax represents a material employment cost that must be factored into total compensation planning.

Total Employment Cost — Example

For an employee with a gross monthly salary of KZT 500,000 in 2026, the total cost breakdown is as follows:

• Employee deductions: UAPF 10% (KZT 50,000) + OSMS 2% (KZT 10,000) = KZT 60,000 (12% of gross)
• Employer costs: OSMS 3% (KZT 15,000) + Social tax 9.5% (KZT 47,500) = KZT 62,500 (12.5% of gross)
• Net salary to employee: KZT 500,000 - KZT 60,000 (UAPF+OSMS) - KZT 50,000 (IIT 10%) = KZT 390,000
• Total employer cost: KZT 500,000 + KZT 62,500 = KZT 562,500

Registration and Compliance

Employers must register with the State Revenue Committee upon hiring their first employee. All contributions are reported and remitted monthly through the E-Salyq portal. The deadline for remittance is the 25th of the following month for all contributions. Non-compliance attracts penalties: 5-50% of unpaid contributions for late filing, plus interest at the refinancing rate plus 1% per month for late payment. The tax authority has the power to suspend operations and seize assets for persistent non-compliance with social contribution obligations.

FAQs

Are foreign workers subject to Kazakh social contributions?

Yes, foreign workers employed in Kazakhstan are generally subject to the same social contribution rules as Kazakh employees. UAPF contributions apply to foreign workers who are permanent residents. OSMS contributions apply to foreign workers with residence permits. Bilateral social security agreements with certain countries (e.g., Russia, Belarus under the EAEU framework) may provide exemptions.

Can I withdraw my UAPF savings before retirement?

UAPF savings can be withdrawn upon reaching retirement age (58/63), permanent departure from Kazakhstan, permanent disability, or inheritance by beneficiaries. Partial early withdrawals are permitted for certain purposes including mortgage down payments on primary housing and medical treatment for serious illnesses.

Are social contributions tax-deductible?

UAPF employee contributions (10%) are deductible from gross salary before IIT calculation, reducing the employee's taxable income. OSMS employee contributions are also deductible. Employer-paid social contributions (OSMS 3% + social tax 9.5%) are deductible corporate expenses for CIT purposes.

Disclaimer

This guide provides general information about Kazakhstan social contributions for the 2026 tax year. Contribution rates and regulations may change. Always consult with a qualified Kazakh tax advisor or the State Revenue Committee for advice specific to your situation. InvestmentKit does not provide tax advice.