Kazakhstan Aims to Raise Wage Share of GDP to 40%

Kazakhstan, Olzhas Bektenov, Central Asia, economy
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Astana (TDI): Kazakhstan is set to implement a series of measures aimed at boosting wages and increasing the overall wage fund, with the government targeting a rise in its share of GDP to 40%, Prime Minister Olzhas Bektenov announced during an expanded cabinet meeting.

Currently, wages account for around 31% of Kazakhstan’s GDP, a relatively high figure for Central Asia but still below levels seen in developed economies, where wage shares often exceed 40%.

Government data indicates that household incomes have been growing more slowly than the broader economy and corporate profits, including profits supported by state programs.

Kazakhstan’s economy expanded by 6.5% in 2025, with GDP reaching $20.1 billion. To address the income gap, the government is preparing a comprehensive package of financial, tax, and regulatory incentives to encourage employers to raise wages.

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The plan also focuses on creating new well-paid jobs, upskilling the workforce, and reducing the financial burden on citizens. Real income growth has been designated a key economic priority for 2026.

A supporting role will be played by the Joint Action Program for 2026–2028, developed by the Cabinet, the financial regulator, and the National Bank.

The program aims to stabilize the macroeconomic environment and enhance public welfare, with a goal of increasing household incomes at a rate at least 2–3% above inflation annually.

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Official statistics show that the average monthly salary in Kazakhstan was about $873 by the end of the third quarter of 2025. However, the minimum wage is set to remain frozen at $172 in 2026, despite earlier commitments to raise it.

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