In the accompanying document to the draft law, the deputy clarifies that from 2014 to 2024, the inflation rate was 68.2%. She also noted that the new Labor Code, adopted in 2025, lacks a provision that was present in the old code from August 4, 2004, which required employers to ensure the growth of the real value of wages through indexing in accordance with changes in consumer prices.
“Although the current version of the Labor Code of the Kyrgyz Republic enshrines the right of workers to fair compensation, there is clearly a lack of legal clarity in the mechanisms for maintaining the real value of wages. The absence of a clear legislative requirement for wage indexing creates ambiguity in the interpretation of norms and reduces the protection of labor rights,” the deputy comments.
The proposed draft law includes amendments to Article 91 of the Labor Code (Payment for Workers' Labor. Forms of Payment for Labor), adding a new paragraph 9 with the following content:
9. The increase in the real value of workers' wages is carried out through the indexing of wages in connection with the rise in consumer prices for goods and services.
Wage indexing in institutions funded from the republican budget will be carried out in accordance with established laws and regulations of the Kyrgyz Republic.
In organizations that do not receive funding from the republican budget, the procedure, conditions, and frequency of wage indexing will be determined by collective agreements, contracts, or local regulatory acts.
