Increase in state funding for Mainstream Media starting from 2027
Kazakhstan Expands Mandatory Social Health Insurance to Civil Contracts
In a significant move to bolster its healthcare system, Kazakhstan has begun withholding mandatory social contributions from individuals working under civil contracts, effective from January 1, 2025. This marks a phased increase in state contributions to mandatory social health insurance for various types of employment.
Lazzat Shomanova, director of the department for improving and analyzing OCM at the Ministry of Health, made this announcement at a briefing in SCK, as reported by Vechernyaya Astana.
Prior to 2025, mandatory social insurance contributions, including compulsory medical insurance, were primarily deducted from the income of employees with formal employment contracts. Employers paid 2% for obligatory medical insurance contributions, while employees contributed 3%.
From January 1, 2025, the law expanded to require social contributions to be withheld and paid on incomes of individuals performing work or services under civil contracts. The contribution rates remain similar, with employers and employees under both employment and civil contracts contributing roughly 2% and 3% respectively for obligatory medical insurance.
The phased increase and broadening of mandatory social health insurance contributions aim to improve funding for Kazakhstan's healthcare system by increasing the revenue base through more comprehensive collection of health insurance premiums. By integrating workers outside formal employment into the mandatory health insurance scheme, it is expected to expand population coverage, reduce gaps in insurance protection, and provide more stable financing for healthcare services.
Enhanced funding could translate into better access and quality of medical care for the population, contributing to overall improvements in public health and social protection. While detailed government projections or outcome assessments are not explicitly provided, such reforms typically aim to stabilize and increase healthcare funding by formalizing contributions from a broader labor market segment, thus benefiting the healthcare infrastructure and insured individuals alike.
The phased increase will be part of a process that will see state contribution rates rise from the current 2% to 4.7% by 2037. The additional funding from this phased increase will significantly contribute to increased accessibility of medical care for the population, ensuring the stability of the medical assistance system in the long term. This phased increase is expected to attract an additional 2.8 trillion tenge to the healthcare system.
The initial financial model for mandatory social health insurance in Kazakhstan was outlined in the first edition of the Law of the Republic of Kazakhstan 'On Mandatory Social Health Insurance' in 2015. Lazzat Shomanova, the director of the department for improving and analyzing OCM at the Ministry of Health, stated that the phased increase in state contributions will help prevent an increase in contributions for workers and employers.
Starting from 2027, Kazakhstan will increase state contributions to mandatory social health insurance. The state contribution rates will return partially to the initial rates set in 2015. This move is expected to further strengthen Kazakhstan's healthcare system and provide more comprehensive insurance coverage for its population.
- The expansion of mandatory social health insurance to civil contracts in Kazakhstan will see contributions being made not only by employees with formal employment contracts, but also by individuals working under civil contracts, aiming to increase the revenue base and provide more stable financing for healthcare services.
- As part of Kazakhstan's phased increase in state contributions to mandatory social health insurance, employers and employees under both employment and civil contracts will continue to contribute roughly 2% and 3% respectively for obligatory medical insurance.
- The increased funding from the phased increase in mandatory social health insurance contributions is expected to benefit the healthcare infrastructure and insured individuals alike, contributing to improved access and quality of medical care, thus leading to overall improvements in public health and social protection.
