Minimum Wage Fixing Convention, 1970 (No. 131) - Kyrgyzstan (Ratification: 2007)

Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions No. 131 (minimum wage) and No. 95 (protection of wages) together.

Minimum wage

Article 2 of Convention No. 131. Sanctions. Further to its previous comments, the Committee notes that the Government’s report does not contain information on the measures taken to give effect to this Article of the Convention. It also notes that in its 2021 report on Convention No. 81, the Government indicates that the new Code of Offences adopted on 28 October 2021 by Act No. 128, which provides for sanctions for violations of labour legislation (sections 87 to 95), does not contain sanctions for failure to apply the minimum wage. The Committee once again requests the Government to take the necessary measures to ensure that failure to apply the minimum wage makes the person or persons concerned liable to appropriate penal or other sanctions, in accordance with Article 2 of the Convention, and to provide information in this regard.

Article 3. Elements to be considered in determining the minimum wage level. The Committee notes that in reply to its previous request, the Government reiterates that the minimum wage is set at 30 per cent of the minimum subsistence level, based on the principle of a progressive raise to the minimum subsistence level for a person of working age, and does not provide any information on the criteria used to determine this ratio. In this context, the Committee expects that at the next adjustment of the minimum wage, so far as possible and appropriate in relation to national practice and conditions, account will be taken of both the needs of workers and their families, and of economic factors, as provided for in Article 3 of the Convention. The Committee requests the Government to provide information on any progress made in this regard.

Article 4. Consultation with the social partners. The Committee notes that in response to its previous comments, the Government indicates that the National Tripartite Commission has not been able to meet for a considerable time, albeit it will consider the issue of the minimum wage raise at its next meeting. In light of this information, the Committee requests the Government to take all necessary measures to ensure that full consultation with the employers’ and workers’ representatives is held in connection with the fixing and adjustment of the minimum wage level, and to provide information in this regard. The Committee also requests the Government to provide information on the composition, and functioning of the National Tripartite Commission, and its work in the context of the next examination of the minimum wage.

Protection of wages

Article 12 of Convention No. 95. Regular payment of wages. Further to its previous comments on the persisting situation of wage arrears in the country, the Committee notes that the Government indicates in its report that this issue will be considered at a meeting of the National Tripartite Commission. The Committee requests the Government to intensify its efforts to address and remedy the issue of wage arrears in consultation with the social partners, including in the framework of the National Tripartite Commission, and to provide specific information on the measures adopted in this respect, including strict supervision, severe sanctions, and appropriate compensation to workers for the losses incurred.

Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions No. 131 (minimum wage) and No. 95 (protection of wages) together.

Minimum wage

Article 2 of Convention No. 131. Sanctions. In its previous comments, the Committee requested the Government to indicate the specific penalties provided for in labour laws or regulations for failure to pay wages at no less than the legally established minimum wage rate. It notes that the Government indicates in its report that the new codes recently adopted do not contain sanctions for the violation of labour law. The Committee recalls that Article 2 provides that failure to apply the minimum wage shall make the person or persons concerned liable to appropriate penal or other sanctions. It requests the Government to take the necessary measures to give effect to this Article and to provide information in this regard.

Article 3. Elements to be considered in determining the minimum wage level. Further to its previous comments, the Committee notes the detailed information provided by the Government on the methodology used to determine the level of the subsistence minimum. While the Minimum Wage Act provides that the minimum wage is to be progressively raised to reach the amount of the subsistence minimum, the Committee notes that, according to the data provided by the Government, the minimum wage in 2018 only covered 31 per cent of the subsistence minimum. Noting the absence of information on how this ratio is determined, the Committee requests the Government to indicate how the needs of workers and their families and the relevant economic factors have been considered in fixing the minimum wage level.

Article 4. Consultation with the social partners. Further to its previous comments, the Committee notes that the Government refers to the National Tripartite Commission. It requests the Government to provide information on the role of that commission in the functioning of the minimum wage fixing machinery.

Protection of wages

Articles 4, 7, 13(2) and 15(d) of Convention No. 95. Partial payment of wages in kind. Works stores. Payment of wages in taverns or shops. Maintenance of wage records. Further to its previous comments on the application of these provisions, the Committee takes note of the information provided by the Government in its report, notably the absence of issues in practice.

Article 12. Regular payment of wages. Further to its previous comments, the Committee notes with concern the information provided by the Government on the persisting situation of wage arrears in the country. It requests the Government to take the necessary measures, in consultation with the social partners, to address the issue of wage arrears and to provide information in this regard. The Committee reminds the Government of the possibility to avail itself of ILO technical assistance.

[The Government is asked to reply in full to the present comments in 2021.]

Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

The Committee notes with regret that the Government’s report has not been received. It hopes that the next report will contain full information on the matters raised in its previous comments initially made in 2013.

Repetition

Article 2 of the Convention. Sanctions. The Committee notes that under section 152 of the Labour Code (Act No. 107 of 4 August 2004, as last amended in 2012), employers are obliged to pay workers a wage that is in compliance with the Labour Code and applicable collective agreements while section 446 provides for civil, administrative and criminal liability for persons found guilty of violating the Labour Code and other labour laws. The Committee requests the Government to indicate the specific penalties provided for in labour laws or regulations for failure to pay wages at no less than the legally established minimum wage rate.

Article 3. Elements to be considered in determining minimum wage levels. The Committee notes that under sections 151 and 154 of the Labour Code, the minimum wage is defined as the guaranteed monthly wage for unskilled workers for average work performed during normal working hours and in normal working conditions, and it is further provided that the wage amount paid to a worker at the lowest category of the pay scale may not be lower than the statutory minimum wage rate. The Committee also notes section 2 of the Minimum Wage Act No. 210 of 13 October 2008, which provides that the national minimum wage is fixed by Government decision through the Act on the State Budget and is progressively raised to reach the amount of the subsistence minimum. The Committee further notes that, by virtue of section 16 of the State Budget Act No. 41 of 17 April 2012, the monthly minimum wage has been set at 840 Kyrgyzstani Som (KGS) (approximately €13.33) for 2013 and KGS900 (approximately €14.28) for 2014. Finally, the Committee understands that the Minimum Consumer Basket Act, adopted in 1993, sets out that the minimum wage basket should serve as a basis for the determination of the minimum wage, taking into account the minimum consumption rate for different age groups to be revised at least once every five years. The Committee requests the Government to provide additional explanations on how the “subsistence minimum” is calculated in practice and to indicate the current ratio of the minimum wage to the subsistence minimum. Moreover, recalling that Article 3 of the Convention requires socio-economic elements to be taken into consideration in adjusting minimum wage levels, the Committee requests the Government to further clarify how social factors, such as social security benefits and the relative living standards of different social groups, but also economic factors, such as levels of productivity and the desirability of attaining and maintaining a high level of employment, are taken into account in determining the minimum wage. Finally, the Committee would appreciate receiving a copy of the Minimum Consumer Basket Act of 1993 which has not been made available to the Office.

Article 4. Full consultations with the social partners. The Committee notes that notwithstanding the establishment of a minimum wage fixing machinery whereby the Government fixes and periodically reviews the minimum wage rate, there does not appear to exist an institutionalized framework in place for conducting consultations with representative employers’ and workers’ organizations in these matters nor is any provision made in the Labour Code for such tripartite consultations. The Committee wishes to recall, in this respect, that one of the fundamental obligations of the Convention is to set up a minimum wage fixing machinery and to associate with its operation representative organisations of employers and workers, who must participate on an equal footing. The obligation to hold full consultations with the social partners lies at the very heart of this Convention even though the manner in which such consultations may be carried out in practice is left to the national authorities. The Committee therefore requests the Government to take steps for the establishment of an appropriate framework for carrying out genuine and effective consultations with the social partners at all stages of the minimum wage fixing process.

Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

Article 2 of the Convention. Sanctions. The Committee notes that under section 152 of the Labour Code (Act No. 107 of 4 August 2004, as last amended in 2012), employers are obliged to pay workers a wage that is in compliance with the Labour Code and applicable collective agreements while section 446 provides for civil, administrative and criminal liability for persons found guilty of violating the Labour Code and other labour laws. The Committee requests the Government to indicate the specific penalties provided for in labour laws or regulations for failure to pay wages at no less than the legally established minimum wage rate.

Article 3. Elements to be considered in determining minimum wage levels. The Committee notes that under sections 151 and 154 of the Labour Code, the minimum wage is defined as the guaranteed monthly wage for unskilled workers for average work performed during normal working hours and in normal working conditions, and it is further provided that the wage amount paid to a worker at the lowest category of the pay scale may not be lower than the statutory minimum wage rate. The Committee also notes section 2 of the Minimum Wage Act No. 210 of 13 October 2008, which provides that the national minimum wage is fixed by Government decision through the Act on the State Budget and is progressively raised to reach the amount of the subsistence minimum. The Committee further notes that, by virtue of section 16 of the State Budget Act No. 41 of 17 April 2012, the monthly minimum wage has been set at 840 Kyrgyzstani Som (KGS) (approximately €13.33) for 2013 and KGS900 (approximately €14.28) for 2014. Finally, the Committee understands that the Minimum Consumer Basket Act, adopted in 1993, sets out that the minimum wage basket should serve as a basis for the determination of the minimum wage, taking into account the minimum consumption rate for different age groups to be revised at least once every five years. The Committee requests the Government to provide additional explanations on how the “subsistence minimum” is calculated in practice and to indicate the current ratio of the minimum wage to the subsistence minimum. Moreover, recalling that Article 3 of the Convention requires socio-economic elements to be taken into consideration in adjusting minimum wage levels, the Committee requests the Government to further clarify how social factors, such as social security benefits and the relative living standards of different social groups, but also economic factors, such as levels of productivity and the desirability of attaining and maintaining a high level of employment, are taken into account in determining the minimum wage. Finally, the Committee would appreciate receiving a copy of the Minimum Consumer Basket Act of 1993 which has not been made available to the Office.

Article 4. Full consultations with the social partners. The Committee notes that notwithstanding the establishment of a minimum wage fixing machinery whereby the Government fixes and periodically reviews the minimum wage rate, there does not appear to exist an institutionalized framework in place for conducting consultations with representative employers’ and workers’ organizations in these matters nor is any provision made in the Labour Code for such tripartite consultations. The Committee wishes to recall, in this respect, that one of the fundamental obligations of the Convention is to set up a minimum wage fixing machinery and to associate with its operation representative organisations of employers and workers, who must participate on an equal footing. The obligation to hold full consultations with the social partners lies at the very heart of this Convention even though the manner in which such consultations may be carried out in practice is left to the national authorities. The Committee therefore requests the Government to take steps for the establishment of an appropriate framework for carrying out genuine and effective consultations with the social partners at all stages of the minimum wage fixing process.