Government Rejects Proposal to Increase Salaries

The government did not approve the legislative initiative by MP Artak Manukyan from the 'My Step' faction during its meeting today, October 10.

The proposal aimed to amend the law of the Republic of Armenia on 'Compensation for Persons Holding State Positions and State Service Positions.' It suggested changes to the monthly salary fund determination for individuals performing civil work and providing technical services in the Office of the President, the staff of the National Assembly, the Office of the Prime Minister, and the staff of the Constitutional Court.

The draft proposes to establish the salary fund for these employees based on the average annual salary indicators in state organizations with 50 or more employees, considering inflation rates.

It also suggests raising the salaries of employees in the mentioned departments only. However, the draft does not clarify the justification for increasing only this specific group of employees' salaries, which constitutes a partial solution and does not align with the principles of a unified salary system established in state authorities.

Moreover, it does not reflect the accepted approaches to salary revisions, which typically consider changes in the minimum wage as a basis. Additionally, the size used for determining the salary fund for civil work and technical service employees is compared to the average salary in the Armenian economy for 2013, presenting that figure in relation to the average salary indicator from 2018 to calculate the average salary for this group of employees (with an inclination towards an increase).

However, such logic is not embedded in the law, making the proposed increase in salary fund and corresponding salary for employees unjustified. If the 2018 figure (171,454 AMD) is used as a basis for 2020, the salary fund would approximately increase by 30 percent without considering inflation.

Besides the issues mentioned above, the acceptance of the presented proposal would create a situation where the basic salary of civil or other state employees would be lower than that of civil servants or technical maintenance personnel in the Office of the President, the National Assembly, the Office of the Prime Minister, and the Constitutional Court.

The Government of the Republic of Armenia considers salary increases in state authorities within the framework of a unified compensation system, in which work is currently ongoing. Summarizing the above, the Government of the Republic of Armenia proposes to leave the article of the existing law under discussion unchanged.