Kyrgyzstan legally mandates wage indexing amid rising prices

President of Kyrgyzstan Sadyr Japarov has signed a law that obliges employers to index wages taking into account the growth of consumer prices for goods and services. The amendments enshrine a mechanism to protect workers' incomes from inflation.

Law No. 152 dated November 6, 2026, amends Article 91 of the Labor Code of Kyrgyzstan. The Jogorku Kenesh adopted the document on October 15, 2026.

According to the amendments, the growth in the real content of employees' wages must be ensured through its indexing amid rising prices for goods and services.

In organizations not financed from the national and local budgets, the procedure, conditions, and frequency of indexing will be determined by collective agreements, accords, or internal regulatory documents of employers.

For organizations financed from the state and local budgets, a separate indexing procedure established by the legislation of Kyrgyzstan applies.

At the same time, the law does not establish a single wage increase percentage or mandatory indexing frequency. These conditions must be determined in accordance with the procedure provided for the employer.

The law will enter into force 10 days after its official publication.

The issue of wage indexing was discussed in the Jogorku Kenesh throughout 2026. In May, the relevant parliamentary committee approved the corresponding bill. The authors of the initiative explained the need for changes by the growth of consumer prices and the decline in the purchasing power of employees' incomes.

In June, another Jogorku Kenesh committee also supported the initiative. The amendments envisaged supplementing Article 91 of the Labor Code with a provision on wage indexing.

Later, the Jogorku Kenesh approved the bill in the first reading. The document aimed to enshrine a unified legal approach to wage indexing and preserve the purchasing power of workers amid inflation.