Minimum Monthly Salary to Increase: Government Approves Changes

The government has approved the draft amendments to the law on "Minimum Monthly Salary" during its session today, September 29. The proposal suggests increasing the minimum monthly salary in Armenia from 68,000 AMD to 75,000 AMD starting January 1, 2023. Accordingly, new minimum hourly rates for employees paid at an hourly or piece rate, as well as part-time workers, will be established.

With the new minimum monthly salary set at 75,000 AMD, it is expected that the remuneration for around 28.7% of the public sector (77,483 employees) and 31.5% of the private sector (209,723 employees) will increase in the labor market. In total, the remuneration for 30.7% of workers across both sectors (665,546 people) will rise.

The expenses directed towards employee remuneration in the state budget will increase by approximately 15.3 billion AMD annually, while in the private sector, the increase will be around 94.2 billion AMD. This means that the total expenses for employee remuneration in both sectors will grow by approximately 109.5 billion AMD per year.

It is pointed out that the government's program for 2021-2026 stipulates that the minimum monthly salary should reach at least 85,000 AMD by 2026.