Employment of Convicted Persons Remains a Key Priority for the Penitentiary System

At the 2025 Board Meeting of the Law Enforcement Agencies, the Head of State instructed the relevant authorities to increase the employment of convicted persons by attracting private businesses and expanding production activities within penitentiary institutions.

Employment plays a vital role in the social reintegration of convicted persons following their release. It helps develop professional skills, strengthens labour discipline, and promotes law-abiding behaviour. At the same time, paid employment enables convicted persons to compensate victims for damages caused by criminal offences, fulfil obligations related to taxes and alimony, and meet other financial liabilities.

To further expand employment opportunities, the Department for the Organization of Convicted Persons' Labour, together with the Republican State Enterprise Enbek, has developed the Development Plan for Production Facilities in Penal Institutions for 2026–2027. The plan предусматривает modernization of production sites, expansion of Enbek's manufacturing capacity, and the introduction of modern automated production processes.

In addition, the construction of 42 production workshops is planned across the country in 2026. These facilities will create new manufacturing capacities within correctional institutions and provide additional employment opportunities for convicted persons.

Today, production has already been established in such areas as light industry, woodworking, unmanned aerial vehicle (UAV) manufacturing, medical products, construction materials, and other industrial sectors. Work is also underway to launch food production, including juices, dairy products, and canned goods.

The average monthly wage of employed convicted persons in 2026 amounts to approximately KZT 85,000.

The Committee of the Penitentiary System is also creating favourable conditions for cooperation with the business community. Efforts are currently underway to develop mutually beneficial cooperation mechanisms between correctional institutions and private enterprises through the introduction of tax incentives and other support measures for businesses that establish and expand production within penal institutions.

To encourage business participation, the Ministry of National Economy of the Republic of Kazakhstan, together with the Ministry of Internal Affairs, the Ministry of Finance, the Ministry of Industry, the Ministry of Labour and Social Protection of the Population, the National Chamber of Entrepreneurs Atameken, and the Association of Social Innovators, has established a working group to improve the methodology for classifying businesses as social enterprises, optimize the Social Entrepreneurship Register, and develop additional government support measures and incentives (Order No. 156 of 22 June 2026).

Under the Entrepreneurial Code of the Republic of Kazakhstan, businesses employing persons serving custodial sentences are classified as Category I Social Enterprises. This status provides access to a range of government support measures, including subsidized interest rates on business loans through the Damu Entrepreneurship Development Fund and eligibility for non-repayable government grants.

As part of the Unified Comprehensive Business Support Programme, social enterprises may receive interest rate subsidies reducing loan rates to 7–8% per annum for loans of up to KZT 1.5 billion. In addition, the Damu Fund may provide loan guarantees covering up to 85% of the loan amount for small businesses.

Additional fiscal incentives are provided under the new Tax Code of the Republic of Kazakhstan, which establishes a fixed 4% basic tax rate for entrepreneurs applying the special tax regime (Article 76).

The employment of convicted persons remains under the special supervision of the Committee of the Penitentiary System of the Ministry of Internal Affairs of the Republic of Kazakhstan.

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Source : https://www.gov.kz/memleket/entities/ps/press/news/details/1274385?lang=ru