ASTANA — Kazakhstan’s plans to raise the minimum wage and expand digital employment should be accompanied by stronger labor protections, safeguards against algorithmic decision-making and fairer access to social assistance, said Dr. Muslim Khassenov, associate professor at Astana-based Maqsut Narikbayev University, in response to President Kassym-Jomart Tokayev’s Oct.
28 state-of-the-nation address. Muslim Khassenov. Photo credit: personal archive In the comment to The Astana Times, Khassenov said the proposed economic and technological reforms must be assessed by their impact on people’s purchasing power, working conditions and access to legal protection.
The expert highlighted five areas in the address requiring particular attention: minimum wages, digital employment, social assistance, scientific research and the planned overhaul of Kazakhstan’s Civil Code. One of the address’s most immediate measures is the planned increase in the monthly minimum wage from 85,000 tenge ($187) to 110,000 tenge ($242) starting Jan.
1, 2027. According to Tokayev, the increase will affect nearly 1.8 million people, including more than 370,000 public-sector employees. Khassenov said the nearly 29% increase carries broader implications for wage policy, particularly as inflation continues to erode household purchasing power.
“Of course, an increase in the minimum wage does not automatically oblige employers to raise all salaries proportionally. However, it is a compelling reason to review compensation systems, promote collective bargaining, and improve wage indexation mechanisms,” he explained.
Even when nominal salaries remain unchanged, inflation effectively reduces their value, he said, making real purchasing power a more meaningful measure of workers’ economic well-being. Tokayev also instructed the government to establish a simplified legal framework for digital employment by the end of 2026, as part of efforts to transform Kazakhstan from a consumer of digital services into a more productive digital economy.
Khassenov sees this proposal as a way to expand economic opportunities for young people, rural residents and people with disabilities by allowing them to earn income regardless of their location. “Simplifying the legal framework for digital employment should mean, first and foremost, reducing administrative barriers and streamlining registration, taxation, and the formalization of working relationships, but not lowering the level of social protection for citizens,” said Khassenov.
A central concern is the distinction between genuinely independent contractors and workers who depend economically and organizationally on digital platforms.