Kyrgyzstan Introduces New Fines for Delayed Salary and Pension Payments

Kyrgyzstan has strengthened penalties for employers and officials who delay salary, pension, and social benefit payments. President Sadyr Japarov has signed amendments into law that impose stricter accountability for such delays.

Under the new regulations, officials found responsible for late payments will face a fine of 20,000 som (approximately $225 USD). Legal entities, such as companies, will be subject to a fine of 65,000 som (approximately $730 USD) for non-compliance.

The law also introduces compensation for recipients whose payments are delayed by more than five days. In addition to receiving the full principal amount, they are entitled to compensation that accounts for inflation and a penalty of 0.15 percent of the outstanding debt for each day of delay. This penalty accrues until the debt is fully paid, with a temporary limit of 200 percent of the debt amount before the recipient formally demands payment.

Furthermore, the new legislation enshrines the right for individuals to choose their preferred method of receiving pension payments, whether through a bank, other financial institution, postal service, or Social Fund branches. The definition of "other social payments" has also been clarified in the Labor Code to include various compensations and benefits related to work-related injuries or occupational diseases. The previous standalone law on timely payments has been repealed, with its core provisions integrated into existing codes and laws.