Categories: Kazakhstan Inside

Salaries in Kazakhstan Are Lower, Compared to Fighting Ukraine: Why?

Kazakhstan features 80th among 106 countries of the world in the global salary review.  Considering that Ukraine holds in the said review 70th place, it appears that we get paid less, compared to war tormented Ukrainians. Armenia, a country that does not produce oil, is also positioned higher.

Looks Like Bombing

MP Islam Sunkar reports that Switzerland with average wages at USD 5.8 thousand holds leadership in the above-mentioned global salary review.  Singapore with USD 4.1 thousand a month holds the second place.  Australia features third – USD 4.09 thousand. The top 10 of the countries with the most advantaged citizens is also comprised from Luxemburg, UAE, USA, Canada, Qatar, Denmark and Iceland.

Russia, a country that invests heavily in war, holds 48th place, allowing its citizens to make USD 884 a month.  Ukraine, as said above, holds 70th place with USD 512 or KZT 229,785.

Islam Sunkar also reported that Kazakhstan held 80th place with the average monthly salary at USD 414 or KZT 183,803.  He added that one should take in account natural resources of the country, while evaluating the level of salaries paid to Kazakhstanis.

MP added that citizens of Kazakhstan would spend the major part of their salaries on grocery goods. Other demands they either do not satisfy, or do so, taking credits from banks. That is especially true for citizens who earn minimal salary. Nurlan Oteshev, Deputy Chair of the Federation of Trade-Unions of Kazakhstan, reports that with the present inflation taken in account, the minimal salary equals KZT 106 thousand.

But even with half a salary spent on food, our citizens nitrite themselves poorly. That is why, public servants speak about necessity to re-consider our food-basket and expand its composition.

Line of Fire

In 2019-2022, the prosperity of Ukrainians improved, but the war impacted that. From habitual 14,055 Hryvnias, the salary there dropped down to 12,644 Hryvnias. Residents of Kiev enjoy the most sustained financial situation, while dwellers of Kirovograd and Chernihiv Provinces suffer most. In the latter Province, the salary was 8,851 Hryvnias in 2019.

Jobs.ua reports that the highest salaries – some 31,970 Hryvnias, are paid in the banking sector.

After the banking sector, salaries in others look, as follows: household services – 26,154 Hryvnias; consulting – 23,889 Hryvnias; agribusiness – 19,585 Hryvnias versus 25,486 in the last year; transportation and car business – 22,116 Hryvnias; science, education and interpreting – 19,246 Hryvnias; advertisement, marketing and PR – 19,432 Hryvnias.

The least is paid to handicaps – 11,375 Hryvnias, employees of publishing businesses – 13,375 Hryvnias and workers of sports and tourism – 14,638 Hryvnias.

Lowest salaries, based on average data, are paid in retail trade sector – 12,969 Hryvnias. A little moreis paid in private security business – 13,235 Hryvnias and education and science – 14,526 Hryvnias.

As to demand, the most popular professions in Ukraine today are the following – craftsmen (22% of all job openings), trade and services clerks (13%). The Ukrainian State Employment Service reports that there some professions that stand separately – foundrymen (70 thousand Hryvnias), fitters (60 thousand Hryvnias), blacksmiths (50 thousand and more).

What About Middle Class?

MP Yuliya Kuchinskaya explains, why salaries are so low in Kazakhstan.

“…To draft a proper plan, we must be based on real figures and have clear understanding of reality…If we pay attention to statistics, it will appear that we live in different Kazakh universes.  Official statistics report that the average salary is KZT 340 thousand.  As for me, I strongly doubt that the majority of population earn that much.  In reality, the average salary is 3 to 4 times lower…”

“…Surprising is that in the last 10 years no factors, including the pandemic and economic crisis, impacted the level of unemployment.  It is always stable – 4.6% to 5%. So, when will we take into account real situation in the social and economic reality of the country?”

Zhandos Shaimerdenov, Head of the National Statistics Bureau, answered Yuliya Kuchinskaya’s questions, saying that today’s indicator, that appears unachievable to many citizens of Kazakhstan, is very average: 

“…5-6% of workers and employees receive KZT 70 thousand, the minimal salary.  In the highest category, i.e. the top 5 of the highest salaries, we see salaries at KZT 565 thousand and higher.  There are categories, where people receive one million and two million KZT… That is why, when we study that broadband, we recommend increase not only at normal, but median level, as well.  In Q1, it was KZT 225 thousand.  The difference between 340 and 225 thousand is because there are workers who receve high salaries”.

Aksinya Titova

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