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Kazakhstan’s minimum wage is to rise from 85,000 to 110,000 tenge on January 1, 2027, under a directive. Business owners should check their mandatory payment calculations before that date. According to er10.kz, Kassym-Jomart Tokayev’s directive appears in his Address to the People of Kazakhstan.
When the minimum wage is due to rise
The directive specifies January 1, 2027. The government is tasked with ensuring that the minimum wage rises to 110,000 tenge.
When planning next year’s expenses, business owners need to account separately for employee salaries and their own mandatory payments.
Who will be affected by the minimum wage increase
According to the estimate cited in the Address, the increase will boost the incomes of nearly 1.8 million people. This includes more than 370 thousand public sector employees.
These figures refer to people’s incomes, rather than the number of business owners whose costs will change.
What social tax sole proprietors pay under the general tax regime
Sole proprietors under the general tax regime are subject to social tax: 2 monthly calculation indices for themselves and 1 for each employee.
The monthly calculation index, or MCI, and the minimum wage are different measures. When reviewing expenses, it is therefore important to check which measure each payment is tied to.
What to check before January 2027
If you operate as a sole proprietor, ask your accountant to check payments for you and your employees separately. Confirm your tax regime and the measure used to calculate each amount.
For sole proprietors under the general tax regime, include social tax for yourself and your employees in the review.
In plain English
Factor the minimum wage increase into your business budget for 2027. Start by checking salaries and mandatory payments so that your cost calculations reflect your tax regime.
