Obligatory Pension Contributions (OPC) for EAEU citizens

Special edition №82

Briefly

Pursuing to the Law of KZ dated December 7, 2020 No . 381 VI on ratification of the Agreement on Pension Provision of employees citizens of Eurasian Economic Union (EAEU), the EAEU citizens are now eligible for same pension rights and obligations , as KZ citizens.

The main goal of the Agreement is to provide the equal pension rights and conditions for the citizens of the EAEU country e.g . Russia ) and citizens of one of the EAEU countries e.g . Kazakhstan ) working in this country e.g . Russia ). Therefore if Kazakhstan citizen is working in EAEU country , he would be entitled for the same pension terms and conditions as citizens of this country.

In detail

Where EAEU citizens are working for KZ employer under employment or civil law contracts , KZ employer is obliged to remit OPC to the Unified Accumulative Pension Fund (UAPF) on a monthly basis starting from 1 January 2021.

OPC rate	10% of the taxable object. Capped at KZT 212,500 per month.
Start date for OPC remittance	January 2021
OPC payment deadline	By the 25th of the month following the month of income reporting one
Any actions from EAEU citizen?	No actions When employer transfers the first installment an individual pension account in the UAPF will be opened for the employee automatically.
Liability for non compliance	Failure to comply with the above state requirements triggers article 91, Administrative code of the RK): in case of an initial violation a warning in case of a repeated violation within a year a fine from 20% to 50% of the amount of unpaid pension contributions

May we remind that EAEU citizens holders of Kazakhstan permanent residence permit are entitled for same pension rights and obligations, as KZ citizens, by default.