Laws that establish the institutional framework
for economic reforms in Kazakhstan
1. The extent to which the currency of Kazakhstan is convertible
into the currency of other countries.
Article 8 of the IMF Articles Agreement (1996) mandates unrestricted
current account transactions.
Article 10 of the Law on Currency Regulation (1996) permits Kazakhstan
banks to freely exchange, buy, and sell foreign currency both in
Kazakhstan and abroad with the appropriate licenses from the National
Bank (virtually all banks possess the licenses).
2. The extent to which wage rates in Kazakhstan are determined
by free bargaining between labor and management.
Law on Labor (1999) – replaces collective agreements previously
negotiated by unions with separate employment contracts negotiated
between individual employees and employers. However, employees or
employers who wish to have collective agreements may bargain for such
agreements. In collective bargaining, both trade unions and other
organizations established by non-union members may represent the
employees’ side. A collective agreement is valid only for those on whose
behalf it was signed. The Law on Labor also states that wages may not
be lower than the minimum monthly wage established by the GOK. The
minimum monthly wage is set in the annual GOK budget. In 2002, the
minimum monthly wage equals 4,181 tenge (approx. $27.50).
Law on Collective Bargaining Agreements (1992) provides for free
bargaining between parties to reach a collective agreement. Parties to
the collective agreement should form a bargaining commission that will
freely choose and discuss the agreement.
As of December 2001, Kazakhstan has ratified 15 International Labor
Organization (“ILO”) Conventions: Conventions ## 29, 81, 87, 88, 98,
100, 105, 111, 122, 123, 129, 138, 144, 148 and 155
Article 17 of the Law on Professional Labor Unions (1993) gives labor
unions the right to develop social and economic protection plans to
protect their members. Uni