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Kazakhstan is set to overhaul its system for unemployment benefits paid from the State Social Insurance Fund (SSIF). The changes aim to curb fraudulent practices and ensure the integrity of the fund.

Addressing 'Grey Schemes' in Benefit Payouts

Minister of Labor and Social Protection, Askarbek Yertayev, confirmed that the mechanisms for payments from the SSIF will be altered. He explained that certain individuals have been exploiting loopholes, leading to unjustified claims. For instance, a single accountant might be registered with ten companies, resign from all simultaneously, and then claim unemployment benefits. While payments are typically calculated based on the claimant's last average salary, the system's upper limits are being reviewed to enhance efficiency and prevent abuse.

Reduced Benefit Duration

Previously, during the pandemic, unemployment benefits could be paid for up to six months. This period is now being shortened to a maximum of four months. Minister Yertayev views this reduction as a necessary step to prevent overpayments and illegal claims, stating that individuals should not immediately claim benefits after leaving a job. The ministry intends to streamline this process.

Capping High Payouts

While acknowledging that some unemployed individuals have received payments up to 1 million tenge, Yertayev assured that measures are being put in place to prevent such occurrences. An upper limit for benefit payments will be established. He emphasized that all legitimate payments will continue to be provided to citizens.

This information was reported by the Infohub.kz news agency.