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Pension reforms will enable people working in hazardous environments to retire at 50: PM

06 may 2013, 13:13
0
Photo courtesy of kapital.kz
Photo courtesy of kapital.kz
The current pension reforms will enable Kazakhstanis working in hazardous enterprises to save enough to be able to retire at 50, the country’s PM Serik Akhmetov said in Zhety Kun program on the national Khabar TV channel.

According to him, the current pension system doesn’t compensate for risks incurred by those working in hazardous conditions.

“For those working in hazardous conditions (…) employers were supposed to have been making voluntary pension deductions [in addition to the mandatory 10% of each employee’s salary] (…) However, few employers have done that. Voluntary deductions have been made for only 4000 people; the overall number of those working in hazardous conditions stands at 364 000 people”, he said.

According to him, “from now on, voluntary deductions will be replaced with mandatory deductions making up 5% of the salary [to complement the current 10%]”.

“Thus pension deductions for those involved in hazardous industrial production will make up 15%. This figure will enable the people to retire at 50”, the PM emphasized.

He also elaborated that “for the employers, these expenses will be subtracted from the tax base”.

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