CSHI for the Unemployed: Where to Start
An unemployed person in Kazakhstan must first determine their official status and check the information about their participation in the CSHI system. Being out of work and being registered as unemployed are different circumstances. Therefore, the procedure for further action cannot be determined solely on the basis that a person is temporarily not receiving a salary. The practical procedure is as follows: check the insured status, establish whether the person is registered as unemployed, and only then determine the grounds and period for payment.
For an accountant, this means that an employee’s dismissal should be distinguished from the individual’s subsequent status. After termination of employment, the organisation accounts for payments only for the period during which the person was employed by it. The former employee’s subsequent participation in CSHI is determined based on their current status and the information recorded in state information systems.
The registration of an individual as unemployed is a legally significant circumstance. For example, the Tax Code expressly identifies it as one of the grounds on which a court may grant a deferral of state duty payment, taking into account the individual’s financial circumstances (Article 135 of the TC RK). However, this provision regulates state duty and does not itself establish the procedure for a citizen’s participation in CSHI.
Who Is Considered Unemployed in Kazakhstan
For practical purposes, it is important to distinguish between the actual absence of work and official registration as unemployed. A citizen’s verbal statement that they are not working is insufficient to conclude that they have official status.
When determining a citizen’s circumstances, the following must be established in sequence:
- whether their employment relationship with their former employer has been terminated;
- whether they applied to a Career Center for employment assistance;
- whether they have been formally registered specifically as unemployed;
- whether their status has changed following employment or the occurrence of other circumstances.
Consequently, applying for advice or job-search assistance should not automatically be equated with registration as unemployed. When resolving a CSHI matter, the citizen’s current information is relevant, rather than merely the purpose of their application to a Career Center.
If status affects the explanation of the procedure for participation in CSHI, the accountant should not rely solely on the verbal statement “I am unemployed.” The citizen should be advised to check the information through an available state service or provide a document confirming their registration. This makes it possible to distinguish the actual absence of employment from officially registered status.
How an Unemployed Person Can Pay CSHI Contributions
Before making a payment, it is necessary to check whether the citizen is actually required to pay independently. Without such a check, an error may be made regarding the period, payment purpose, or grounds for participation in the system. The amount should not be determined independently solely on the basis that the person is not receiving a salary.
The safe sequence of actions is as follows:
- Check the CSHI status. It is necessary to establish whether the citizen is shown as insured and for which periods information or payments are missing.
- Clarify the employment status. If the person applied to a Career Center, it is important to establish whether they have been registered as unemployed.
- Determine the grounds for participation. It is necessary to establish whether the citizen must pay independently or whether their information should be taken into account under another applicable ground.
- Verify the period and payment details. Before payment, the period, payment purpose, payer’s IIN, and recipient’s details should be checked in an official service or payment application.
- Retain proof of payment. The receipt or electronic payment confirmation should be kept at least until the payment is reflected in the information system.
- Check the status again. After the payment has been processed, it should be confirmed that it was allocated to the correct citizen and the correct period.
If the payment is not reflected, first compare the IIN, period, payment purpose, and details shown on the receipt. The citizen may then contact the bank through which the transaction was processed or the state service displaying the CSHI status. Making another payment before identifying the reason may result in money being transferred twice for the same period.
What an Accountant Should Consider After an Employee’s Dismissal
In accounting records, it is important to draw a clear distinction between the employer’s settlements for the period of employment and the individual’s actions after dismissal. The accountant should verify the completeness of the settlements and the accuracy of the information relating to the employee’s period of work. At the same time, a former employee must not be promised that a particular CSHI status will be retained without checking current data: after dismissal, the grounds for their participation may change.
An employee being dismissed may be given a neutral memo:
- check their CSHI participation status after termination of employment;
- if they are out of work, determine the procedure for registering as unemployed;
- do not equate a consultation or an application for job-search assistance with formally registered unemployed status;
- before making an independent payment, check the grounds, period, IIN, and payment details;
- retain the payment document and then check that the payment has been reflected.
Official status should be assessed as of the date on which the issue of participation in CSHI is being resolved. Previous registration does not confirm that the information remains unchanged after employment or other changes in the citizen’s circumstances. Therefore, when determining the payment procedure, current data obtained immediately before payment must be used.
Frequently Asked Questions
Do unemployed persons pay CSHI contributions independently? — The fact that a person is out of work alone is insufficient to answer this question. The citizen’s official status, information in the CSHI system, and the grounds under which payments should be accounted for must first be checked.
How can an unemployed person pay CSHI contributions in Kazakhstan? — First, the insured status, the grounds for independent payment, and the required period must be established. Before completing the transaction, the IIN and payment details must be verified; after payment, the receipt must be retained and the payment’s reflection in the system checked.
Does applying to a Career Center make a person unemployed? — Applying for advice or job-search assistance does not itself confirm registration as unemployed. To resolve the matter, it is necessary to check which status has actually been registered.
Can an accountant continue paying CSHI contributions for a former employee as if they were a current employee? — After termination of employment, the accountant takes into account the dismissal date and the settlements relating to the period of employment. The grounds for the individual’s subsequent participation in CSHI are determined separately based on their current status.
What should be done if the payment has been processed but the status has not changed? — Check the IIN, period, payment purpose, and details in the payment document. Then check the transaction status with the bank and the information in the state service displaying the CSHI status. Another transfer for the same period should not be made until the reason has been established.
Sources
This guidance was prepared using the provision of the Tax Code of the Republic of Kazakhstan concerning registration as unemployed as one of the grounds for deferring the payment of state duty, taking into account an individual’s financial circumstances (Article 135 of the TC RK). This article does not regulate CSHI payments; therefore, the procedure for independent payment is presented in the article as a sequence of practical actions without specifying unconfirmed rates or deadlines.