Oil payments by firms in Kazakhstan: What are the amounts?
Revised Article:
In Kazakhstan, you've got over a hundred oil and gas companies digging away, providing jobs for over 55,000 people right off the bat. These folks chipped in a whopping 80 billion tenge in individual income tax (IIT) for the year 2020.
Now, compare that to the 8.7 million active people across the nation who collectively coughed up 930 billion tenge in IIT the year before. That means just 0.6% of the oil workforce (compared to the overall active population) put nearly 9% of all IIT revenues on the table.
So, it's no secret that the oil sector is a big fish in the economic pond.
But here's the kicker - these Kazakh oil workers are scraping the bottom of the barrel compared to their global counterparts. Let's say you're an oil whiz from the West and you're working in Kazakhstan – you could be raking in more than $100,000 annually.
Who's doing the big spending? The top dogs are listed below. Just remember that high wages for foreign specialists mainly come from Tengizchevroil (TCO), Karachaganak Petroleum Operating (KPO), and North Caspian Operating Company (NCOC).
Now, President Tokayev asks, "What's up with the wage gap between foreign and local workers?"
Lowest wages can be found in oil companies with Chinese ties.
Now, let's drill down into the reasons behind the pay imbalance:
Market and Skill Differences:- International market rates can vary based on factors like cost of living and expertise.- Specialized skills and experience demanded for specific roles can also impact pay levels.
Company Policies and Cost Considerations:- Contractual agreements might differ between foreign workers, including benefits and living accommodations.- Foreign workers could receive allowances to soften the blow of cost-of-living differences.
Legal and Regulatory Frameworks:- Laws and regulations (local and international) might influence how companies structure salaries for foreign versus local employees.- Processes and costs related to work permits and visas can sway wage structures.
Economic and Cultural Factors:- Socio-economic disparities in Kazakhstan could be mirrored in the working world, with foreign workers coming from countries with higher living standards.- Communication and cultural barriers can restrict local workers from reaching higher echelons of the workforce.
Industry Practices:- The oil and gas sector tends to follow global standards that may prioritize international talent for certain roles.- The need for specialized skills in specific sectors can drive the recruitment of international talent at higher pay scales.
In a nutshell, the wage gap at these companies arises from a mix of economic, legal, cultural, and industrial factors that mirror the globe-trotting nature of the oil industry and the unique situations of the Kazakhstan market.
- The petroleum industry in Kazakhstan, while largely listed among the top contributors to individual income tax (IIT), reveals a significant wage gap between foreign and local workers.
- Despite the over 55,000 jobs provided by the oil sector in Kazakhstan, salaries for oil workers are notably lower compared to their global counterparts, with an oil expert from the West potentially earning over $100,000 annually.
- The lowest wages in the Kazakh oil sector can be found in companies with Chinese ties, while the highest wages are mainly attributed to Tengizchevroil (TCO), Karachaganak Petroleum Operating (KPO), and North Caspian Operating Company (NCOC).
- The pay imbalance in the oil sector is influenced by market and skill differences, company policies and cost considerations, legal and regulatory frameworks, economic and cultural factors, industry practices, and the unique situations of the Kazakhstan market.
