Government 2008 review: social sphere

ASTANA. January 14. KAZINFORM What were the main priorities of the Government in 2008? What are the main indicators of socio-economic development in this period? Kazinform offers its readers referral information on the social sphere.

In line with the Head of the State?s commissions social policy of Kazakh Government is aimed at maintaining social stability, improving living standards and create favorable conditions for human development. Unlike previous years the implementation of social priorities is performed under the world financial crisis and there is some slowdown in the real sector of the economy. In such circumstances the issues of preserving employment and income maintainance, social assistance and support to the most vulnerable groups have become matters of particular importance. To fulfill the social obligations in accordance with the instructions of the President of Kazakhstan the social programs financing has been preserved in full amount. Expenditures on social assistance and social security in 2008 were envisaged at the amount of KZT 622,9 bln (KZT 503 bln? in 2007). Due to measures, taken by the Government, it became possible to avoid job losses and massive layoffs in the real sector of the economy. The overall situation on the labor market is sufficiently stable and there is the growth of economic activity of population. Within the implemented investment projects and the development of the real sector of economy during ten months of 2008 over 236 thousand jobs were established, more than a half of which appeared in rural areas. In order to preserve jobs in the world crisis the Government had provided the following measures: 1) the memoranda were signed with large companies on preservation of jobs envisaged by Kazakh legislation. All in all 110 memos were signed with enterprises and 10 agreements with unions of employers. 2) The maximal usage of the measures envisaged by the labor legislation is stimulated: - introduction of part-time work; - temporary transfer of a worker to another job with payment of at least two thirds of the average monthly wage in the previous work. Compensation in the amount not less than 50% of wages in case of suspension of production and forced downtime. (So far, these measures are used by enterprises «Arcelor Mittal Temirtau», JSC «Sokolovsko-Sarbayskoe Mining Production Association», JSC «Kazchrome», Ltd. «Kazakhmys», etc.). The workers at the risk of losing the job (participants of the system of compulsory social insurance) receive the social payments during four months from the State Fund of Social Insurance. The President of Kazakhstan?s instructions on improving the social welfare have been also implemented. Since 2008 the amounts of pension payments have been increased, the state special allowances were introduced by the List № 2 as well as insurance payments from the State fund of social insurance for pregnancy and birth, monthly allowance for care of a child. The size of basic pension payment has increased from 3000 (2007) to 4810 tenge, which is now 40% of the subsistence minimum.