May 19 2014 (The Conway Bulletin)- In 2020, Kazakhstan will probably introduce a new pension scheme that will deduct 5% of an employee’s wages and automatically place it in a government plan, the labour ministry told the Tengrinews website.
Employers will match this employee contribution.
It appears that these planned reforms haven’t been announced more widely and loudly because of a very real fear of upsetting people.
The risk for Kazakhstan is fairly obvious. In Armenia a similar plan triggered widespread demonstrations. The problem is that Kazakhstan and other former Soviet States need to reform and update their pension schemes.
Last year, the Kazakh labour sacked its ministers because of backlash over trying to make women retire at the same age as men.
Persuading Kazakhs to accept the latest plan is also likely to be a serious challenge for the Kazakh government.
ENDS
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(News report from Issue No. 185, published on May 21 2014)