After an increase in October 2024, the size of an average pension in Kyrgyzstan will be 10,547 soms. The draft resolution of the Cabinet of Ministers on the indexation of pensions from October 1 says.
The document was submitted for public discussion by the Social Fund.
The background statement says: the Constitution stipulates that pensions should ensure a standard of living not lower than the legal minimum subsistence level.
«At the same time, in accordance with the decision of the Constitutional Court of the Kyrgyz Republic dated April 19, 2023, it was determined that the provision of pensions not lower than the minimum subsistence level of a pensioner should be considered as a target for the state,» the Fund adds.
Therefore, it is necessary to create economic and legal prerequisites for maintaining pensions at a sufficient level, also through indexation of pensions.
In accordance with Article 7 of the Law «On State Pension Social Insurance»:
- The condition for indexing the insurance part of the pension is an increase in the average wage and the consumer price index established for the calendar year preceding indexation;
- The condition for indexation of the basic part of the pension is an increase in the average salary for the previous calendar year preceding indexation. The basic part of the pension is indexed, if the total amount of the pension is lower than the pensioner’s minimum subsistence level (actually established for the previous calendar year).
The draft resolution proposes to approve, from October 1, the indexation coefficient of the insurance part of pensions in the amount of 1.18 or to increase the insurance part of pensions by 18 percent, but not less than 1,000 soms.
At the same time, in pursuance of the provisions of Article 44 of the Constitution, it is proposed to increase the total amount of pensions (if it is lower) to the minimum subsistence level of a pensioner established for the previous year — 6,816.47≈6,900 soms.
According to preliminary calculations by the Social Fund, the number of pensioners as of October 1 will be 787,500 people. Based on the results of the upcoming increase, the average size of the pension is estimated to be 10,547 soms, which is higher than the average size of the pension at the time of the increase by 1,432 soms.
At the same time, due to the indexation of the basic and insurance parts of pensions to the minimum subsistence level of pensioners (about 316,600 people), the increase will make up 30 percent.
«These measures protect both the interests of the low-income population by establishing a minimum threshold, and citizens who make large contributions to the pension system. The more contributions, the higher the indexation,» the Social Fund emphasizes.
It believes: in the end, the constitutional norm will be observed in terms of providing pensions not lower than the pensioner’s minimum subsistence level, with the exception of cases that are achieved for the first time in the history and practice of pension provision and are a landmark event.
In this regard, further newly assigned pensions can no longer be less than the pensioner’s minimum subsistence level established over the previous year by increasing the basic part of the pension, with the exception of cases provided for by the Law «On State Pension Social Insurance».
From the background statement
