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Kazakhstan Plans to Cut Unemployment Benefits Duration Amid Fraud Concerns

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Kazakhstan Plans to Cut Unemployment Benefits Duration Amid Fraud Concerns

Kazakhstan's Ministry of Labor intends to tighten unemployment recognition rules, reducing benefit duration to four months. Minister Askarbek Yertayev announced the changes amid concerns over fraudulent schemes. The adjustments aim to address inconsistencies in the social insurance fund.

Proposed Changes

Minister Askarbek Yertayev announced plans to increase the job search period and reduce unemployment benefit duration from six to four months. The current system allows applications for benefits within three days of job loss, but this will revert to the pre-pandemic period of ten days. The changes are driven by the need to address fraudulent activities within the state social insurance fund.

Fraudulent Schemes

Yertayev cited cases where individuals exploited the system, such as a bookkeeper who worked for ten organizations and claimed benefits based on her last average salary. The minister noted that payments sometimes reach up to 1 million tenge, which he deemed unacceptable. The ministry plans to set a cap on benefit payouts to prevent misuse.

What's Next

The timeline for implementing these new rules remains unspecified. It is unclear how these changes will impact unemployment rates and benefit claims.

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Kazakhstan Plans to Cut Unemployment Benefits Duration Amid Fraud Concerns