The Prime Minister of Kazakhstan

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M. Abylkassymova on formalization of self-employed population: Since the start of the year, status of 607 thousand people updated

17 April 2018, 11:36

Today at the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev, the Minister of Labor and Social Protection of the Population, Madina Abylkassymova, presented a report on the implementation of the Roadmap for formalizing and involving the informally employed population in the country's economy for the first quarter of 2018, as well as plans for further actions.

According to Madina Abylkassymova, since the beginning of the year, out of 2.7 million people without a status, 607 thousand have updated their status. 197 thousand workers have concluded employment contracts, started making mandatory pension contributions, 12 thousand entrepreneurs registered their businesses, regions continue to involve self-employed and unemployed in employment promotion measures.

"Work on updating the statuses is carried out in all regions. Regional Formalization Headquarters have been specially created and operate there, which include all the structural units of the akimats, as well as the territorial subdivisions of the central state bodies. The work is carried out on the basis of the adopted Regional Road Maps for formalization," Madina Abylkassymova said.

The main direction of the Road Map is the formalization of employment, aimed at addressing a number of key issues. Among them are the registering with the statistical accounting, the complexity of tax regimes, the lack of certain organizational and legal regimes. In this regard, the draft law "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Legalization of Activities of Informally Employed Population" is being prepared.

Another important area of ​​the Roadmap for formalization is the modernization of the labor market infrastructure through which citizens are provided access to productive employment.

As part of the President's instructions, work is being carried out to reform employment centers, create a single online platform and fully implement the electronic labor exchange. To this end, the draft law "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Employment and Population Migration" has been developed.

"Since October 2017, the electronic labor exchange has functioned in a pilot mode in the employment centers of Astana, Almaty, Pavlodar and Shymkent, and since January 2018, the Portal has been launched throughout Kazakhstan. At the moment the portal takes the second place in Kazakhstan in terms of attendance among the sites on the topic "Jobs and Vacancies" and 74th place among all Kazakhstan sites," Madina Abylkassymova said.

Through the electronic labor exchange, more than 21 thousand people have been employed, about 28 thousand employers registered by creating their own "personal cabinets."

The second channel on the labor market is the state employment centers. At present, the MLSPP together with the akimats is working on their transformation.

In addition, as part of the modernization of the labor market infrastructure, it is envisaged to involve private employment agencies in the employment. For this, the concept of "Outsourcing of Employment Services" is being introduced — a set of measures aimed at the transfer by the employment centers of services to private employment agencies on the basis of an agreement on service outsourcing. Outsourcing is supposed to transfer services for vocational guidance and job placement for the unemployed, which will make it possible to employ about 60 thousand people.

At the same time, the Minister noted that the issue of automatic and regular updating of citizens' statuses directly depends on the integration of information systems of state bodies. Today, most of these systems are integrated. Integration with the remaining databases of the Ministry of Finance on entrepreneurs and the Ministry of Education and Science on students, children under 18 and persons raising children under the age of three will be completed before the end of this year.

Madina Abylkassymova informed that a new detailed questionnaire has been developed to strengthen the information updating, and together with the Ministry of Information and Communications, the implementation of four new update channels is being developed: eGov portal, Single Contact Center 1414, and organizations providing services to the population, such as public service centers and medical institutions, as well as the notification of persons without status through mobile SMS.

During the consideration of the issue, the Minister of National Economy, Timur Suleimenov, spoke. According to him, in order to implement the sixth action item of the Roadmap regarding the definition of the taxation of the self-employed population, it is proposed to introduce a new regime — "single aggregate (social) payment" (SAP), where the monthly payment amount will be 1 MCI (2405 tenge) for payers in cities and 0.3 MCI for villages (722 tenge). The payment will include tax and all social payments.

The SAP includes: the amount of the individual income tax (10%), the mandatory pension contribution (40%), the social contribution to the state social insurance fund (10%), state health insurance fund (40%). Norms on the SAP will be included in the Tax Code.

In addition, the First Vice Minister of Agriculture, Arman Yevniev, spoke at the meeting. The Ministry of Agriculture, as an operator of the second direction of the Enbek Program, is working to involve the self-employed and the unemployed population in personal subsidiary farm (PSF) owners’ status in productive activities and in the formal sector by providing loans/microcredits for business projects in rural settlements , small towns.

Akim of the South Kazakhstan region, Zh. Tuimebayev, Almaty – A. Batalov, East Kazakhstan – D. Akhmetov, Almaty – B. Baibek, spoke about the work on the formalization and involvement of the informally employed population in the economy of the region.

Deputy Prime Minister of the Republic of Kazakhstan, E. Dossaev, noted that the work on the implementation of the Road Map will continue together with the regions.

"With the ready draft law we'll go to the Parliament. We have a goal – to complete this work before July 1," said Erbolat Dossaev.

Following the results of consideration of the issue, the Prime Minister Bakytzhan Sagintayev noted that this issue concerns not only the ministries that reported today.

"This is also the responsibility of the Ministries of Justice, Information and Communications, Education and Science, Internal Affairs, local akims of all levels," said Bakytzhan Sagintayev.

The general coordination is assigned to Deputy Prime Minister of Kazakhstan, E. Dossaev.


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