Pashinyan Discusses Salary, Pension, and Benefit Increases

During the discussion of the 2020 budget draft, Armenian Prime Minister Nikol Pashinyan announced that economic activity and changes in social conditions are expected as a result of changes to the Tax Code, which will come into effect on January 1, 2020. He stated, “In terms of social policy, it can be noted that around 200,000 citizens will see an increase in their salaries because we are introducing a flat income tax rate. In other words, the volume of funds available to these citizens will increase as a result of the changes to the Tax Code.

Additionally, we will have a 10 percent increase in the average pension amount. Starting from July 1, 2020, we will also increase the one-time childbirth benefit to 300,000 drams; currently, the benefits for the first and second child are set at 50,000 and 150,000 drams respectively. Furthermore, there will be an increase in the childcare benefit for children under two years old, rising to 25,500 drams from the current 18,000 drams,” Pashinyan announced.

The Prime Minister noted that an economic revolution is gaining momentum in Armenia and is already visible to the naked eye. He called out that the biggest challenge remains the under-execution of capital expenditures as planned. “While previously, shortfalls were a general occurrence, they can no longer be considered a reality today. I cannot rule out that such phenomena may occur, but the officials involved must be aware that at any moment, there will be consequences for them,” he added.