EMPC: Explanation in Kazakhstan
EMPC stands for employer mandatory pension contributions. The term is used in Kazakhstan when accounting for obligations related to the funded pension system. Accountants should not confuse EMPC with other pension payments: the common word “pension” in their names does not mean that the payments have the same payer, source of payment, calculation basis, or accounting treatment.
When working with EMPC, it is necessary to consistently check the period to which the transaction relates, who is recognized as the payer, which accruals are included in the calculation, and how the liability is recorded in the accounting system. Regulatory parameters should be determined in accordance with the legislation applicable in the relevant calculation period, and the calculation result should be reconciled with source documents and accounting data.
As a general rule, tax accounting is based on accounting data, while accounting documentation includes accounting records, primary accounting documents, tax registers, tax forms, and other documents serving as the basis for determining taxable items and calculating tax liabilities (Article 202 of the Tax Code of the Republic of Kazakhstan). Therefore, the accuracy of the underlying accruals and documents is important not only for internal payroll reconciliation but also for the subsequent aggregation of accounting data.
The rate, calculation base limits, categories of payers, exemptions, and deadline for transferring EMPC must not be determined using last year’s guide or saved software settings. They are applied in accordance with the rules effective in the period for which the calculation is made. If parameters from the previous year are saved in the information database, they must be compared with the parameters of the current calculation period before accruals are processed.
How EMPC Differ from Other Pension Payments
The main point is contained in the term itself: EMPC are employer mandatory pension contributions. Therefore, in payroll accounting, the type of payment must not be determined solely by the employee’s surname, the accrual period, or the general designation “pension contributions.” Each type of contribution must be identified separately by payer, source of payment, and calculation basis.
In practice, accountants should distinguish between several matters:
- who is the payer of the particular type of contribution;
- at whose expense the relevant obligation is fulfilled;
- which accrual or other circumstance serves as the basis for the calculation;
- for which individuals the calculation is performed;
- which payments are included when determining the calculation base;
- the period to which the accrual and transfer relate;
- the analytical accounting categories under which the accrued amount, transfer, and outstanding balance are recorded.
This distinction is particularly important when reconciling payroll with payments. Even if the total amount of pension payments appears reasonable, incorrect classification may distort the liability for a particular type of obligation. Therefore, EMPC should be reviewed separately, not only as part of the total amount of payroll-related settlements.
Separate controls are also required when correcting data from previous periods. The accountant should establish whether the original accrual, the calculation of a particular contribution, the payment document, or only the accounting analytics are being changed. The correction must preserve the link between the calculation period, the individual, the organization, and the document that gave rise to the amount.
Last year’s calculation settings should not be copied mechanically. For accounting in 2026, it is necessary to ensure that the regulatory parameters and production calendar in the software are up to date, accruals are allocated to the appropriate calculation types, and documents relate to the correct periods. A software update alone does not replace verification of the source data: after updating, it is advisable to perform a test calculation and reconcile it with registers and primary documents.
How to Check EMPC in 1C
In the configuration being used, the review should begin with reports on settlements with employees and liabilities for pension contributions. If the “Structure of Organizations’ EMPC Liabilities” report is available in the software, it can be used to analyze accrued, transferred, and outstanding amounts according to the analytical dimensions provided in the report.
Under certain software settings, the report may be available at:
“Payroll” → “Structure of Organizations’ EMPC Liabilities.”
The available commands, section name, and report availability depend on the application solution, configuration version, functional settings, and user permissions. Therefore, the absence of the command at the specified location does not necessarily mean that the data is unavailable: the required indicators may be displayed in another payroll report or may be unavailable to a particular user profile.
If the report supports groupings, indicators, filters, and drill-downs, it is advisable to generate it initially with the minimum number of restrictions. The data can then be progressively detailed by organization, period, individual, and document. This approach helps avoid concealing a problematic line with an overly narrow filter and makes it possible to identify which document affected the final indicator.
A working review can be performed in the following order:
- Set the period to be reviewed and select the relevant organization.
- Generate the report without optional filters to view the overall balance and movement of amounts.
- Compare the accrued amounts with payroll calculation documents and documents for other included payments.
- Reconcile the reduction in liabilities with the posted transfer documents.
- Drill down into lines containing unexpected balances, turnovers, or missing indicators.
- Check the dates, calculation period, and posting status of the documents included in the drill-down.
- Make sure that the payment is allocated to EMPC, the correct organization, individual, and calculation period.
- After correcting the source data, regenerate the report using the same settings and compare the result.
Simply comparing the total accrued amount with the total payments is insufficient. A discrepancy may remain hidden if an overpayment for one employee or period offsets a liability for another. Therefore, where such analytics are available, both the organization total and the details by period, individual, and document should be reconciled.
If the report is not displayed at the specified location, the configuration in use, release version, enabled functionality, and user permissions should be checked. For 2026, the current reference releases are “Accounting for Kazakhstan” 3.0.74.x and “Payroll and Human Resources Management for Kazakhstan” 3.1.37.x. However, the actual availability of a particular report is determined by the components and settings of the installed configuration.
What an Accountant Should Check in 2026
Before the first calculation of a new period, it is advisable to carry out a separate control procedure. First, the applicable regulations should be used to determine the categories of payers, the calculation object, applicable exemptions and limitations, the rate, and the transfer deadline. The regulatory parameters should then be compared with the accounting software settings and tested using data from one calculation period.
The minimum checklist is as follows:
- the current release of the configuration in use is installed;
- the regulated parameters included in the update have been loaded;
- the effective period of each calculation parameter has been checked;
- employee accruals are correctly classified in the software;
- EMPC are separated in analytical accounting from other types of pension payments;
- accrual documents are posted in the relevant calculation period;
- transfers are recorded using the correct details, payment type, and purpose;
- liability balances are supported by drill-downs to the underlying documents;
- duplicate, canceled, and reposted documents are either absent or correctly accounted for;
- manual adjustments have a clear basis and documentary support.
If a discrepancy is identified, the analysis should begin with the primary document and the posting document that generated the entry. Possible causes include an incorrect calculation period, duplicate document posting, an inappropriate accrual type setting, a missing transfer document, incorrect analytical accounting, or a correction to the original accrual without recalculating the related amounts.
A manual adjustment of the closing balance without eliminating the cause may temporarily conceal the problem, but the discrepancy may reappear when the period is closed, documents are reposted, or the next reconciliation is performed. The source document must first be identified, the data must then be corrected using the method prescribed for the configuration in use, and only after that should the control calculation be repeated.
Particular attention should be paid to the documentary basis for the correction. A taxpayer must organize accounting so as to ensure the aggregation and systematization of information required to determine reportable items and fulfill tax obligations; as a general rule, tax accounting is based on accounting data (Article 202 of the Tax Code of the Republic of Kazakhstan). For this reason, the corrected amount must be traceable from the final report to the document and the corresponding accounting entry.
The method for working with the software report helps identify a discrepancy but does not establish the regulatory parameters for EMPC. The rate, composition of the calculation base, limitations, exemptions, and transfer deadline must be applied in accordance with the legislation applicable to the particular period. The software settings are a calculation tool and must comply with these rules.
Frequently Asked Questions
What does EMPC stand for in Kazakhstan? — EMPC stands for employer mandatory pension contributions. In accounting, they should be recorded separately from other types of pension contributions.
Are EMPC and other pension contributions the same? — No. Accountants must distinguish between payment types based on the payer, source of payment, calculation basis, calculation period, and accounting analytics.
Where can EMPC liabilities be viewed in 1C? — If the relevant report is included in the configuration and available to the user, it may be located at “Payroll” → “Structure of Organizations’ EMPC Liabilities.” The location and command name depend on the configuration and its settings.
Can last year’s calculation parameters be used in 2026? — They may be used only after being compared with the rules applicable to the calculation period and after checking the effective period of the software settings. Rates, limits, or deadlines from the previous year must not be carried forward automatically.
What should be done if the amount in the report does not match the calculation? — Check the organization, period, source accruals, transfer documents, and analytics. Then drill down from the disputed amount to the posting document, correct the source document, and regenerate the report using the previous settings.
Is it sufficient to reconcile only the total amount for the organization? — No. The total amount may conceal offsetting discrepancies between employees or periods. Where the relevant analytics are available, the details by individual, period, and document should also be checked.
Does a 1C update confirm that the calculation is correct? — An update keeps the software mechanisms and release parameters current, but the accountant must still verify the source accruals, document periods, analytics, and calculation result.
Sources
Tax Code of the Republic of Kazakhstan, Article 202 “Tax Accounting and Accounting Documentation.”