Financial burdens on wage income: Central Asian Turkish Republic Countries and Kyrgyzstan

Labor element has a different importance and place in production factors. Labor element in particular can have a huge impact on economic growth, political and social stability for countries. Main financial burdens on wages; it consists of personal income tax and social security premiums. In the study, in Kyrgyzstan and Central Asian Turkish Republics (Kazakistan, Tacikistan, Turkmenistan, Ozbekistan) fiscal burden on wages within; were examined income tax tariff, exception and exemptions, tax reductions, social security contributions. As a result of the studies on the minimum wage issue, Turkmenistan comes first in Central Asia with an amount equivalent to 248.57 USD. In second place, Kazakhstan paid a minimum wage worth $ 114.60. Uzbekıstan, Tacikistan, and Kyrgyzstan follow these countries, respectively. While the minimum wage for employees in Kazakhstan and Turkmenistan is over $ 100, the minimum wage in the remaining three countries is below $ 100. In the study, the levels of financial burdens on wages, together with the minimum wage, were examined comparatively for the Central Asian Turkic republics and Kyrgyzstan, and policy recommendations on the reduction of labor burdens were found. The finding revealed that Kyrgyzstan is the country with the lowest minimum wage among the Central Asian Republics, and its social security Premium rates are higher than other countries.