The Prime Minister of Kazakhstan

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Within the framework of the President's Address, status of self-employed formalized — T. Duissenova

16 January 2018, 11:56

Today, during the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, the Minister of Labor and Social Protection of the Population Tamara Duissenova reported on measures to introduce a new format of targeted social assistance and formalization of self-employed people.

Targeted social assistance of the new format began its work on 1 January 2018. In this direction, over the past three years, significant work has been done on the quality provision of this type of social assistance. In the fourth quarter of 2017, work began on the timely identification of people in need of targeted assistance and the conclusion of social contracts with them.

"To date, social contracts have been signed with more than 105 thousand families. Most of them will receive cash aid, as well as assistance in finding employment," Tamara Duissenova said.

According to the schedule of local executive bodies, in January, about 49 thousand families will receive targeted social assistance.

The Head of State, in the framework of his Address to the People, "New Opportunities for Development in the Conditions of the Fourth Industrial Revolution," criticized the work of the Ministry of Labor and Social Protection of the Population regarding the issue of self-employed people. In this regard, at the previous meeting of the Government, Bakytzhan Sagintayev instructed the MLSPP to report on the process of formalizing self-employed citizens.

Thus, during the meeting of the Government, Tamara Duissenova reported that in Kazakhstan the self-employed account for a quarter of the workforce.

"The self-employed population in our country is a product of a transition period. From 1991 to 2001, as a result of mass closure of enterprises and job cuts, the number of self-employed increased from 327,000 to 2.8 million people," Tamara Duissenova said.

The growth in the number of self-employed people was suspended by the implementation of a number of employment programs, as well as the improvement of the economic situation in the country.

Over the past 7 years, the number of self-employed has decreased by half a million, so did their share in the economically active population — from 31% to 26%. But this, according to the minister, is still very high, with the shadow economy, informal employment, income concealment and social insecurity directly related.

"To address these problems, on the instructions of the Head of State, in the course of preparation for the introduction of the health insurance system, work was carried out and continues to formalize the self-employed population. In 2017, a reconciliation of the status of citizens was carried out, a bypass detour was carried out and formalization of labor relations of the self-employed was started with the participation of central state bodies," Minister T. Duissenova said.

Thus, in less than a year, the status of about 3 million people out of 5.7 million previously unidentified was defined and formalized. Of the remaining 2.7 million people:

  • 1.2 million — informally employed (workers without MPC, unregistered entrepreneurs), for the formalization of which it is necessary to amend the legislation;
  • 1.5 million are unproductively self-employed and unemployed, who are to be involved in productive employment.

The results show that the main task is the coverage of active measures of employment not of 2.7 million, but only 1.5 million people.

To date, regional akims have developed and approved regional Roadmaps for the formalization of self-employed and Comprehensive plans to promote their employment. 743 thousand jobs with employment potential were identified this year, and indicators of coverage of 571,000 self-employed persons among those identified in the course of a household tracing were established.

Most participants are involved in the Program for Productive Employment and Territorial Development. More than half of them will be employed for permanent jobs. Others — are directed to subsidized jobs and to training in demanded professions.

Monitoring of employment in real time in the context of any settlement where projects are being implemented will be carried out by means of an electronic Employment Map.

Tamara Duissenova drew attention to the fact that employment growth can be achieved on the basis of opening new jobs in the real sector of the economy and services, as well as the digitization of employment. In this connection, the ministry plans to simplify the procedure for registering self-employed people with incomes below 24 times the MW per year. The introduction of the Unified Registration System in electronic format with provision of multi-channeling is proposed.

In addition, the full use of the electronic labor exchange is planned, to which all regions have been connected since the beginning of the year, as well as the introduction of the Unified Electronic Labor Contract Accounting System, and the expansion of the employment network by attracting private employment agencies.

The situation in the sphere of introduction of TSA of a new format and formalization of self-employed in the regions was also reported by akims of the South Kazakhstan region Zh. Tuimebayev, East Kazakhstan region D.Akhmetov, Almaty region A.Batalov.

Concluding the consideration of the issue, the Prime Minister noted that the criticism voiced in the Address of the Head of State regarding the self-employed population is the last notice for everyone. Bakytzhan Sagintayev instructed to revise as a complex all the voiced proposals monthly, as well as to complete digitization of labor and employment of the population in 2018.