Improving the system of wage regulation in Kazakhstan

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DOI:

https://doi.org/10.26577/be.2023.v143.i1.07
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Abstract

The article analyzes the current practice of wage regulation in Kazakhstan. The purpose of the article is based on the results of a comprehensive analysis of official statistics for 2001-2021 and the current system of wage regulation, to identify the existing problems and possible solutions. To conduct a comparative analysis, statistical data from OECD Data and OECD Statistics were used, which mainly reflect the dynamics of Germany's indicators in the field of wage regulation. The wage regulation mechanism in a market economy is considered as a system consisting of three closely interconnected parts (blocks):

- formation of an equilibrium wage rate in the labor market;

- use of the system of social partnership;

- implementation of measures of state influence.

The analysis revealed that in Kazakhstan, supply and demand in the labor market do not have an adequate impact on the formation of the market wage rate, due to the low level of maturity of social and labor relations, the interests of employers dominate over the interests of employees, the effectiveness of collective agreements in regulating wages is very low . The role of the state in achieving a specific relationship between social justice and economic efficiency is not fully   manifested.

The agreed position of social partners on a reasonable increase in the share of wages in GDP should be achieved in the course of concluding a General Agreement between the Government of the Republic of Kazakhstan, republican associations of employers and republican associations of trade unions. Based on the experience of the United States, it is advisable to create a National Labor Relations Administration, which will also deal with the certification of trade unions. Increasing the wages of workers should become a priority goal of socio-economic policy.

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How to Cite

Jumambayev, S. K., Ilyashova, G. K., & Dosmbek А. Z. (2023). Improving the system of wage regulation in Kazakhstan. Journal of Economic Research &Amp; Business Administration, 143(1), 83–96. https://doi.org/10.26577/be.2023.v143.i1.07