Social contract with hidden implications: the Ministry of Labor is revising the formula for the social assistance program (ASP).

The Ministry of Labor and Social Protection is planning to transform the mechanism for providing targeted social assistance (TSA) to low-income citizens of Kazakhstan. So far, it is known that the changes will focus on enhancing targeting, automating processes, and accounting for not only citizens' incomes but also their expenses. However, the ministry has not provided answers to more detailed questions regarding these changes, how they will monitor and identify fraudsters, or the indexing of payments, as reported by inbusiness.kz.

Currently, social support for low-income citizens in Kazakhstan is provided at both republican and local levels. Kazakhs facing difficulties can receive targeted and housing assistance, one-time payments, and other forms of state support. However, the priority remains the provision of social assistance.

TSA is provided comprehensively, combining cash payments, employment measures, and additional payments for preschool children. A key condition for receiving TSA is the signing of a social contract, under which the recipient commits to employment obligations. If these obligations are not fulfilled, assistance is suspended for the entire family.

Thus, TSA includes:

• quarterly assignment of social assistance for citizens whose income does not exceed 70% of the regional minimum subsistence level;
• additional payments for preschool children (1.5 MRP, or 5538 tenge, for each child monthly);
• employment support, including job placement, grants for starting a business, training, and skill enhancement;

It is noteworthy that as of November 1, 2024, additional payments were allocated for 126,000 preschool children among TSA recipients, totaling 4.5 billion tenge.

Automation and Risk Management

Kazakhs can apply for TSA through the e-government web portal, authorized bodies, or the Family Digital Card (FDC). The latter platform allows for proactive access to government services without unnecessary documentation.

"The platform serves as an 'electronic notifier' for citizens about their rights to receive various types of state support based on their social status. Currently, there are instances where Kazakhs are unaware of their rights regarding state guarantees and support measures," the Ministry of Labor noted.

Despite the automation of the process, which ensures transparency and control at all stages, cases of abuse persist. Some families intentionally conceal their incomes to qualify for assistance.

Changing Approaches

Currently, the ministry faces the task of revising the approaches to providing TSA, taking into account not only citizens' incomes but also their expenses.

"In this regard, there will be a transformation of TSA using the FDC and integration with the systems of state and non-state organizations. The upcoming changes in the TSA assignment mechanism will help identify truly needy citizens and provide them with targeted support from the state," the ministry stated.

It is worth mentioning that the Ministry of Labor has not responded to the editorial questions regarding these changes and the indexing of payments. Apparently, officials have not yet completed their work on the "transformation," which is why they prefer to remain silent. Thus, it is still unknown how the TSA mechanism will evolve.

Recall that efforts to improve TSA began after President Kassym-Jomart Tokayev criticized the existing mechanism.

The head of state emphasized that support should be provided to "truly needy people, not those living in their homes and owning expensive cars." He also noted that social assistance should be based on an analysis of expenses, not just incomes, which are often understated.

Since the beginning of 2024, over 157,000 notifications regarding the right to TSA have been sent through the FDC, but only 88,900 people have submitted applications. This year, 54.7 billion tenge has been allocated from the budget for these purposes.

In conclusion, it can be said that the country's authorities are striving to ensure that support reaches every needy individual, providing equal opportunities for all segments of the population. This is particularly important in the context of accelerating inflation and rising prices, which significantly worsen the situation of vulnerable groups.

For many families today, TSA remains the only way to cope with financial difficulties. The transformation of this system should not only improve the functioning of the authorities but also provide real assistance to those in need.