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Kazakhstan's Parliament has put forward proposals for mandatory annual wage increases and measures to reduce the significant pay disparity between management and ordinary employees. However, these initiatives have not received support from the government, highlighting a divergence in priorities during discussions on the new Labor Code.

Criticism of the Draft Labor Code

Some members of parliament have voiced strong criticism, describing the draft Labor Code as lacking a robust social focus and being overly "truncated" and "decorative." They argue that the proposed legislation fails to address the real economic conditions within enterprises.

Addressing Contract Work

One proposal aimed to prohibit the use of civil-law contracts (GPC) for work that should be classified as standard employment. If an employee works in a specific role, adheres to internal company rules, reports to a supervisor, and receives wages based on process rather than output, they should be registered as a full-time employee. However, it was revealed that no penalties are foreseen for non-compliance with this prohibition, with inspectors only able to issue a "polite letter" to employers.

Mandatory Wage Indexation Debated

A key proposal from the deputies was to mandate employers to index wages annually. Currently, the Labor Code only allows for this to be addressed in collective agreements. The government rejected this proposal, with ministry representatives arguing that such an obligation would impose an additional burden on businesses, particularly in the face of inflation and rising production costs, making it unfeasible for many companies.

Deputies Askhat Aimagambetov and Zhanarbek Ashimzhanov have pledged to revisit this issue in the future.

Bridging the Executive-Worker Pay Gap

Another significant issue raised was the widening salary gap between management and frontline employees. Lawmakers described this disparity as having "multiplied" and proposed regulations to address it. The new draft law includes provisions to equalize wages within the same profession using the "Kaitz index." However, the government indicated that it would not intervene in the pay gap between management and ordinary workers, citing factors such as managerial responsibility, risks, and market competitiveness.

Late Wage Payments

Deputy Nartay Sarsengaliyev also highlighted the issue of delayed wage payments. His proposal to increase compensation for such delays was also not supported by the government. The current penalty is considered too low, effectively allowing companies to take out loans at the expense of their employees.

Overall, many of the proposed amendments in the new draft law appear to have limited practical impact. While Parliament sought to strengthen social protections, it encountered budgetary and corporate constraints, illustrating how political rhetoric can be tempered by economic realities.

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