ASTANA — Kazakhstan’s plans to raise the minimum wage and expand digital employment should be accompanied by stronger labor protections, safeguards against algorithmic decision-making and fairer access to social assistance, said Dr. Muslim Khassenov, associate professor at Astana-based Maqsut Narikbayev University, in response to President Kassym-Jomart Tokayev’s Oct. 28 state-of-the-nation address.
Muslim Khassenov. Photo credit: personal archive
In the comment to The Astana Times, Khassenov said the proposed economic and technological reforms must be assessed by their impact on people’s purchasing power, working conditions and access to legal protection.
The expert highlighted five areas in the address requiring particular attention: minimum wages, digital employment, social assistance, scientific research and the planned overhaul of Kazakhstan’s Civil Code.
Higher wages and purchasing power
One of the address’s most immediate measures is the planned increase in the monthly minimum wage from 85,000 tenge ($187) to 110,000 tenge ($242) starting Jan. 1, 2027. According to Tokayev, the increase will affect nearly 1.8 million people, including more than 370,000 public-sector employees.
Khassenov said the nearly 29% increase carries broader implications for wage policy, particularly as inflation continues to erode household purchasing power.
“Of course, an increase in the minimum wage does not automatically oblige employers to raise all salaries proportionally. However, it is a compelling reason to review compensation systems, promote collective bargaining, and improve wage indexation mechanisms,” he explained.
Even when nominal salaries remain unchanged, inflation effectively reduces their value, he said, making real purchasing power a more meaningful measure of workers’ economic well-being.
Digital employment
Tokayev also instructed the government to establish a simplified legal framework for digital employment by the end of 2026, as part of efforts to transform Kazakhstan from a consumer of digital services into a more productive digital economy.
Khassenov sees this proposal as a way to expand economic opportunities for young people, rural residents and people with disabilities by allowing them to earn income regardless of their location.
“Simplifying the legal framework for digital employment should mean, first and foremost, reducing administrative barriers and streamlining registration, taxation, and the formalization of working relationships, but not lowering the level of social protection for citizens,” said Khassenov.
A central concern is the distinction between genuinely independent contractors and workers who depend economically and organizationally on digital platforms.
Although platform workers may formally operate as independent service providers, companies can determine their compensation, allocate assignments, monitor performance and unilaterally restrict their access to work.
According to Khassenov, regulation should address these power imbalances by ensuring access to social insurance, protection against occupational risks, transparent payment systems and effective dispute resolution mechanisms.
The growing use of artificial intelligence in employment decisions creates additional challenges.
“Algorithms are already being used to evaluate employee performance, assign tasks, and make personnel decisions. Employees must understand the data and criteria on which decisions affecting their rights are based and have the opportunity to challenge those decisions,” he said.
“The more digital monitoring tools employers and platforms acquire, the more effective digital mechanisms for protecting workers’ rights must become,” he added.
The professor also suggested that digital technologies could strengthen labor protections through automated working-time records, smart contracts and systems designed to ensure timely wage payments.
Social assistance should remain accessible
Another major theme of Tokayev’s address was the need to make state assistance more targeted, ensuring support reaches those who genuinely need it.
While acknowledging the importance of improving the efficiency of social spending, Khassenov warned against relying too heavily on formal income indicators or automated eligibility assessments.
“Targeting must not become a mechanism for reducing the number of social assistance recipients at any cost,” he said.
He explained that a household’s actual financial situation may depend on factors beyond reported income, including the number of dependents, medical expenses, disability and debt obligations.
The effectiveness of social policy, Khassenov noted, should be measured by whether assistance reaches vulnerable households in a timely manner, rather than primarily by the amount of public money saved.
Scientific development requires better working conditions
Khassenov also emphasized the importance of improving employment conditions for researchers as Kazakhstan pursues technological modernization.
He emphasized that investment in scientific infrastructure and equipment alone is insufficient without addressing the administrative and legal barriers that limit researchers’ productivity.
“The primary resource of science is the scientist, his or her intellectual freedom, time, and the opportunity to conduct research,” said the professor.
“Today, there are certain legal and administrative restrictions that make it difficult to balance teaching and research, for scientists to participate in multiple research projects, and to receive fair compensation for the work actually performed,” he said.
Khassenov called for more flexible employment arrangements, fairer remuneration and reduced reporting requirements.
He also noted that digitalization itself can sometimes increase bureaucracy by introducing additional electronic reporting systems rather than eliminating administrative tasks.
A new Civil Code
Tokayev’s proposal to adopt a new Civil Code by the end of 2027 also presents an opportunity to modernize Kazakhstan’s legal framework.
The current code, developed in the 1990s, predates many of the technologies now reshaping business and employment, including digital assets, electronic transactions and smart contracts.
“However, it is important that the modernization of civil law not be limited solely to technological innovations,” said Khassenov.
One priority, he noted, is preserving a clear distinction between civil law contracts and employment relationships. Without such safeguards, new contractual arrangements could be used to circumvent labor obligations and deny workers access to social protections.
In his address, Tokayev also announced plans to allocate 6.5 trillion tenge (US$14.2 billion) from the National Fund through 2029 for a nationwide infrastructure modernization program. The initiative will cover social, transport and utility infrastructure, with 1.5 trillion tenge (US$3.3 billion) earmarked for social projects in 2026 and the first two months of 2027. The President also proposed declaring 2027 the year of nationwide construction.
Khassenov stressed that the success of any reforms should be measured by their tangible impact on citizens.
“A strong state is one where people can work with dignity, receive fair compensation, benefit from modern technologies, develop their abilities and count on effective protection of their rights,” he said. “People, their dignity, work and well-being must remain the central purpose of all reforms.”
