Government Announces Pension Increases Effective January 1

The government decided in its meeting on December 26 to increase the amounts of the basic pension, minimum pension, burial benefit, the value of a year of service, and the pension amounts for the disability of conscripts and their family members in case of loss of a breadwinner.

“Periodic increases in state pension amounts are one of the expenditure priorities in the social sector set by the Republic of Armenia's 2020-2022 Medium-Term Expenditure Framework, aimed at ensuring a rapid increase in the average pension amount against inflation. The purpose of this proposal is to overcome extreme poverty among pensioners, as well as recipients of benefits in cases of old age, disability, and loss of a breadwinner,” stated Minister of Labor and Social Affairs Zaruhi Batoyan while presenting the bill.

Thus, it is proposed to set the minimum pension amount at 26,500 AMD (instead of 25,500 AMD) starting from January 1, 2020, and to adjust the basic pension amounts for calculating work and military pensions to 18,000 AMD (instead of 16,000 AMD). The value of a year of service for the first ten years will be 950 AMD (instead of 800 AMD), and the value of a year of military service will be 1,600 AMD (instead of 1,500 AMD).

The military pension amounts for conscripts' disability, for a first-category disabled person, will be 40,000 AMD (instead of 36,000 AMD), for a second-category disabled person 30,000 AMD (instead of 26,000 AMD), and for a third-category disabled person 27,000 AMD (instead of 25,500 AMD). In case of loss of a soldier (killed in action), the pension amount for the deceased soldier's family member will be 27,000 AMD (instead of 25,500 AMD). For minors under 18 years of age who have lost both parents (or studying in a day-time educational institution), the amount will be 90,000 AMD (instead of 80,000 AMD).

It is also proposed to increase the amounts of benefits for old age, disability, and loss of a breadwinner, setting them at 26,500 AMD (instead of 25,500 AMD); for minors over 18 who have lost a breadwinner (or studying in a day-time educational institution), the amount will be 90,000 AMD (instead of 80,000 AMD).

This decision will come into effect on January 1, 2020.