---
title: "Kazakhstan Tax and Payroll 2026 | IIT, OPV, MRP"
description: "Kazakhstan payroll 2026 runs a new progressive income tax. The first band is 10%, the band above 8,500 MRP is 15%, and the MRP base is KZT 4,325."
canonical: https://www.teamed.global/country-hiring-guides/kazakhstan/tax-and-payroll
---

Kazakhstan · Tax & payroll child

Served by Teamed vetted partner-entity network in Kazakhstan

# How does *Kazakhstan payroll tax* work in 2026?

January 2026 ended the flat 10% income tax. Pay is now split at 8,500 MRP, with 10% below the line and 15% on every tenge above it. Most thresholds in Kazakhstan move with the MRP, the Monthly Calculation Index, which rose to KZT 4,325 for the year. Get that single number wrong and the whole payroll run drifts.

Last reviewed 13 June 2026 · Kazakhstan guide

![Almaty business district at golden hour with the Tien Shan mountains behind the office towers.](/images/country-guides/kazakhstan-tax-payroll.webp)

Illustration · Almaty, Kazakhstan

Answer.cite this

Kazakhstan changed its income tax in 2026. The flat 10% rate is gone. Pay below 8,500 MRP is taxed at 10%. Pay above that line is taxed at 15%.

Almost every payroll threshold tracks the MRP, the Monthly Calculation Index. The MRP for 2026 is KZT 4,325. The minimum monthly wage holds at KZT 85,000, the same as 2025.

Employers also fund pension, social, and medical contributions on top of pay. Each one is a separate filing with its own base and ceiling. Wages must be paid at least once a month, by the 10th of the following month (Labour Code Art. 113).

## What does an employer pay on top of a Kazakhstan salary?

An employer in Kazakhstan funds several charges above gross pay. These cover social tax, social insurance, and mandatory medical insurance.

Each charge has its own base and its own ceiling tied to the MRP, which is KZT 4,325 for 2026. The rates are set by the Tax Code and the Social Code, not by one combined number.

An employer in Kazakhstan carries more than the salary line. On top of gross pay you fund a set of state charges, each remitted separately and each with its own base.

| Employer charge | What it funds | Base |
| --- | --- | --- |
| Social tax | General state budget | Gross pay, less employee pension |
| Social insurance contributions | State Social Insurance Fund | Capped income, tied to the MRP |
| Mandatory medical insurance | Health fund | Capped income, tied to the MRP |
| Employer pension contribution | Workers' pension (phased in) | Capped income, tied to the MRP |

The exact employer rates are set under the [Tax Code of the Republic of Kazakhstan](https://adilet.zan.kz/rus/docs/K1700000120) and the Social Code, and several of them are still phasing in year by year. We do not publish a single combined employer percentage here, because the consolidated figure is not confirmed in the primary statute text we hold. The contribution ceilings move with the MRP, so when the MRP rose to KZT 4,325 for 2026, the capped charges moved with it.

### Why the MRP matters

The MRP, the Monthly Calculation Index, is the unit nearly every threshold in Kazakhstan is written in. Contribution ceilings, tax bands, and benefit caps are all set as multiples of it. For 2026 the MRP is KZT 4,325, up from 3,932 the year before. One index change ripples through the whole payroll run.

## What comes off a Kazakhstan employee's pay?

Two things come off before income tax. The employee pays a mandatory pension contribution and a medical insurance contribution.

The pension contribution goes to the Unified Accumulative Pension Fund. Income tax is then worked out on what remains (Tax Code of Kazakhstan).

An employee's gross pay is reduced before income tax is calculated. The deductions feed the pension and health systems.

| Employee deduction | Where it goes | When it applies |
| --- | --- | --- |
| Mandatory pension (OPV) | Unified Accumulative Pension Fund | Before income tax |
| Mandatory medical insurance | Health fund | Before income tax |

### The pension contribution

The mandatory pension contribution, known locally as OPV, is paid by the employee into the Unified Accumulative Pension Fund. The exact percentage and its earnings cap are set by the [Tax Code](https://adilet.zan.kz/rus/docs/K1700000120) and the pension law, and the base is tied to the MRP. We do not state the rate here as a fixed figure, because the current-year percentage and cap are not confirmed in the primary statute text we hold. Both the pension and the medical contribution are taken before income tax, so they lower the amount that income tax is charged on.

Because these deductions come off first, the order of the calculation matters. Apply income tax to the wrong base and the take-home figure is wrong, even when the tax band is right. Teamed's payroll runs the deductions in the correct order on every cycle.

## Kazakhstan income tax bands for 2026

Kazakhstan moved to a two-band income tax on 1 January 2026. The old flat 10% rate is gone.

Pay up to 8,500 MRP a year is taxed at 10%. Pay above that line is taxed at 15% (Tax Code Art. 363).

| Annual income (in MRP) | Rate |
| --- | --- |
| Up to 8,500 MRP | 10% |
| Above 8,500 MRP | 15% |

### The 2026 progressive change

For years Kazakhstan taxed individual income at a single flat rate of 10%. From 1 January 2026 the [Tax Code introduced a progressive scale](https://vko.kgd.gov.kz/ru/news/osnovnye-izmeneniya-v-nalogovom-kodekse-rk-s-1-yanvarya-2026-goda-chto-vazhno-znat-o-ipn-i). The first 10% band runs up to 8,500 MRP of annual income. Everything above that line is taxed at 15%, applied only to the amount over the threshold.

The threshold is written in MRP, not in tenge, so it shifts when the index shifts. At the 2026 MRP of KZT 4,325, the 8,500 MRP line sits at roughly 36.8 million tenge of annual income. Below it, nothing changes from the old flat rate. Above it, higher earners now pay more than they did in 2025.

### What comes off before income tax

Income tax is charged on taxable pay, which is gross pay less the allowable deductions. The mandatory pension and medical contributions come off first. That order lowers the taxable base, so it has to be applied before the band rates, not after.

## How does Kazakhstan payroll filing and remittance work?

Employers withhold income tax and contributions from each payroll run. These are reported and paid to the State Revenue Committee.

Wages must reach the employee at least once a month, by the 10th of the following month. Each employee gets a monthly payslip (Labour Code Art. 113).

Tax Code · Individual income tax (IIT)

Employers withhold individual income tax and the mandatory contributions from pay, then report and remit them to the State Revenue Committee. From 1 January 2026 the income tax runs on a two-band scale, 10% up to 8,500 MRP and 15% above it, replacing the former flat 10% rate.

Source: [Tax Code of the Republic of Kazakhstan](https://adilet.zan.kz/rus/docs/K1700000120)

Kazakhstan payroll runs on a monthly cycle. Wages must be paid in tenge, in cash or to an account, at least once a month, no later than the 10th of the following month. The same monthly rhythm carries the withholding and contribution filings:

- **Individual income tax** withheld and remitted to the State Revenue Committee
- **Pension (OPV)** remitted to the Unified Accumulative Pension Fund
- **Social insurance and medical insurance** remitted to the relevant state funds
- **Payslip** issued to each employee, in writing or electronic form, every month

The payslip is not optional. The employer must tell each employee, monthly, what makes up their pay, what was deducted including pension, and what is payable. Miss the monthly deadline or skip the payslip and you are outside the Labour Code, regardless of whether the tax maths was correct.

1. Collect pay data Gather salary, hours, bonuses, and any taxable benefits for the period before the run closes.
2. Apply pre-tax deductions Take the mandatory pension and medical contributions off first. These reduce the pay that income tax is charged on, so the order matters.
3. Calculate income tax Apply the two-band income tax to taxable pay, with the lower band up to the MRP threshold and the higher band above it.
4. Calculate employer charges Work out social tax, social insurance, medical insurance, and the employer pension contribution on the relevant capped bases.
5. Remit and pay wages Report and remit the tax and contributions to the State Revenue Committee, then pay wages by the 10th of the following month with a payslip.

## Pension and social funds in the Kazakhstan payroll stack

The pension contribution feeds the Unified Accumulative Pension Fund. Social insurance and medical insurance sit alongside it.

Sick pay runs from the first day of illness, capped at 25 MRP a month, which is 25 times the index (Social Code).

The Kazakhstan payroll stack carries more than pension. Three state systems share the monthly run, each with a different purpose.

- **Pension (OPV)** goes to the Unified Accumulative Pension Fund and builds the worker's retirement pot. The base is tied to the MRP.
- **Social insurance** funds state benefits, including the temporary-incapacity benefit paid during illness.
- **Mandatory medical insurance** funds the health system.

### Sick pay and its cap

Sick pay starts on the first day of illness and runs until the employee recovers or a disability is determined. The monthly benefit is capped at 25 times the MRP. That cap does not apply to a work injury or an occupational disease. At the 2026 MRP of KZT 4,325, the 25-times ceiling sets the monthly sick-pay limit for an ordinary illness.

### No statutory 13th-month salary

Kazakhstan has no mandatory 13th or 14th month salary. The Labour Code defines wages only as the agreed pay, due at least monthly. Any annual bonus is a matter of contract, not law, so budget it as a choice rather than an obligation.

## How does Teamed handle Kazakhstan payroll for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Kazakhstan for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Income tax, pension, social insurance, medical insurance, and the full Kazakhstan employment law stack run on **one platform**.

**Real HR and legal experts** handle your Kazakhstan hires, from the first offer letter through every monthly filing to the State Revenue Committee. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice, so you see pension, social, and medical contributions as separate lines, never a blended number.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Kazakhstan contractor who converts to payroll keeps their record. That same employee can **graduate** from EOR to your own Kazakhstan entity without switching systems. Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture, including the 2026 income tax change from a flat 10% to the two-band scale. EOR is the right model for a first Kazakhstan hire, **until it isn't**. Start from [the Kazakhstan hiring overview](/country-hiring-guides/kazakhstan).

Key sources: the [Tax Code of the Republic of Kazakhstan](https://adilet.zan.kz/rus/docs/K1700000120), the [Labour Code No. 414-V](https://adilet.zan.kz/eng/docs/K1500000414), and the [2026 republican budget law](https://adilet.zan.kz/rus/docs/Z2500000239) that sets the MRP and minimum wage.

## Frequently asked questions

What are the Kazakhstan income tax bands for 2026?

Kazakhstan moved to a two-band individual income tax on 1 January 2026. Annual pay up to 8,500 MRP is taxed at 10%. Pay above 8,500 MRP is taxed at 15%, applied only to the amount over the threshold. This replaced the former flat 10% rate. The threshold is written in MRP, which is KZT 4,325 for 2026.

What is the MRP in Kazakhstan and why does it matter for payroll?

The MRP, the Monthly Calculation Index, is the unit most statutory thresholds in Kazakhstan are written in. For 2026 it is KZT 4,325, up from 3,932 the year before. Income tax bands, contribution ceilings, and benefit caps are all set as multiples of the MRP, so one index change moves the whole payroll calculation.

What is the minimum wage in Kazakhstan in 2026?

The statutory minimum monthly wage in Kazakhstan is KZT 85,000 for 2026. It is unchanged from 2025. Kazakhstan sets a monthly minimum wage only, there is no separate statutory hourly minimum.

When must Kazakhstan wages and payroll taxes be paid?

Wages must be paid in tenge at least once a month, no later than the 10th of the following month. Income tax and the mandatory pension, social, and medical contributions are withheld from each run and remitted to the State Revenue Committee and the relevant funds. Each employee must also receive a monthly payslip showing the components of pay and the deductions.

Does Kazakhstan require a 13th-month salary?

No. Kazakhstan has no statutory 13th or 14th month salary. The Labour Code defines wages only as the agreed pay due at least monthly. Any annual bonus is set by contract, not by law, so it is a discretionary cost rather than a required one.

How is sick pay handled in Kazakhstan payroll?

Sick pay runs from the first day of illness until the employee recovers or a disability is determined. The monthly benefit for an ordinary illness is capped at 25 times the MRP, which at the 2026 MRP of KZT 4,325 sets the monthly ceiling. The cap does not apply to a work injury or an occupational disease.

Teamed Legal Operations

The Kazakhstan mistake we see most in 2026 is treating income tax as the flat 10% it used to be. The split at 8,500 MRP is new, the MRP itself moved this year, and almost every other threshold is written in that same index. Get the MRP right and most of the run falls into place. Get it wrong and the error repeats on every line.

A note from Tom Price-Daniel

Kazakhstan ended its flat 10% income tax in January 2026. Pay now splits at 8,500 MRP, 10% below and 15% above.  
The MRP that sets nearly every threshold rose to KZT 4,325 for the year, while the minimum wage held at KZT 85,000.  
Fix the index first, then run the numbers.

Tom Price-Daniel · Co-founder, Teamed

## Related Kazakhstan guides

- [Hiring in Kazakhstan, overview](/country-hiring-guides/kazakhstan)parent
- [Termination and severance in Kazakhstan](/country-hiring-guides/kazakhstan/termination-and-severance)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan and the Unified Accumulative Pension Fund, or speak to a qualified professional, before relying on any specific framework. The progressive individual income tax took effect on 1 January 2026 and replaced the former flat 10% rate. The MRP and the minimum wage for 2026 are set by the republican budget law and are reviewed each year, so confirm the current index before any payroll run.