Agreement On Pension Coverage For Employees Of The EEU Member States
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On 1 January 2021, the Agreement on Pension Coverage of
Employees of the Eurasian Economic Union Member States, ratified by
the Republic of Kazakhstan on 7 December 2020 (hereinafter -
“Agreement”), entered into force.
The main purpose of the Agreement is formation of equal rights
in the field of pension coverage among citizens of the EAEU member
states. In other words, citizens of a member state of the EAEU
performing labour (civil) activity on the territory of the Republic
of Kazakhstan shall be entitled to the very same pension coverage
rights as the citizens of the Republic of Kazakhstan.
The Agreement additionally envisages: a mechanism for export of
pension savings between the EAEU member states, the procedure for
medical examination when a disability pension is assigned,
inheritance of pension savings, as well as provisions on the
required period of employment and calculation of the pension.
Practical aspects of the implementation of the Agreement are
regulated by a separate regulatory document – Procedure for
Interaction between the Authorized, Competent Bodies of the EAEU
Member States and the Eurasian Economic Commission on the
Application of the Provisions of the Agreement.
Special attention by Kazakh employers should be drawn to the
fact that, according to the Agreement, pension rights granted to
citizens of the EAEU member states should be formed from pension
contributions on the same conditions and in the same manner as the
formation of pension rights of citizens of the Republic of
Kazakhstan. This, in turn, obliges Kazakh employers from 1 January
2021 to make mandatory pension contributions in the amount of 10%
of income – for all employees that are citizens of the EAEU member
states. We would like to add some clarity by suggesting that
earlier such a duty existed only in relation to foreign citizens
holding residence permits.
Information regarding the occurrence of additional obligations
on Kazakh employers has already been confirmed by Akmadi Sarbasov,
First Vice Minister of the Ministry of Labour and Social Protection
of the Population of the Republic of Kazakhstan1 .
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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