Minimal pension in Armenia to total 25,500 AMD

Armenian government proposes setting 25,500 AMD as minimal pension by making amendments in the law on state pensions.

“We suggest applying new institute in the pension system – introduction of minimal pension. This initiative will exclude the extreme poverty line among pensioners,” deputy labor and social affairs minister Smbat Saiyan stated at the NA today.

This initiative relates to 18,000 pensioners who are getting less than 25,500 AMD.

As a result of implementation of this initiative the budget expenses will add by 800 million AMD.

“After the adoption of the bill a recalculation will be made and the sums for the first months of 2019 will be paid,” he said.

In response the PAP lawmaker Tigran Urikhanyan tried to clarify whether they really think that 25,500 AMD will result in reduction of extreme poverty rate. In response the deputy minister said that the poverty assessment methodology differs.

“Poverty is being assessed in the family. Individual person may not be considered extremely poor as his income is higher of extreme poverty line – 25,000 AMD. But if to view the person inside the family he may be considered poor family member,” the deputy minister said.