Proposal in Kyrgyzstan to enshrine wage indexation in law

The Jogorku Kenesh has passed a bill at first reading that would enshrine wage indexation in the Labour Code.

The initiative aims to maintain the real level of workers’ incomes in the face of inflation and rising prices for goods and services. As noted by one of the bill’s authors, MP Gulnara Akimbayeva, the proposed changes will establish a uniform legal framework for wage indexation across organisations, regardless of their form of ownership.

The bill provides for an amendment to Article 91 of the Labour Code, which will enshrine wage indexation as a mechanism for increasing real wages.

During the discussion, MP Gulya Kozhokulova proposed introducing a provision stipulating that the rate of indexation for the minimum wage in private organisations must not be lower than the rate set by the state.