Pension Increase of 3000 Dram Results in Thousands Losing Benefits, Minister Explains

Pension recipients are automatically excluded from the social assistance system. This was stated by the Minister of Labor and Social Affairs, Narek Mkrtchyan, during a press conference on December 8, in response to concerns that the increase in pensions by 3000 dram has resulted in thousands of citizens losing their benefits, as they are no longer considered needy.

The minister clarified: "There is a system for assessing family poverty. This is calculated based on various indicators, one of which is the income derived from family members' wages. When family incomes change, that change leads to obtaining or losing eligibility for benefits. This happens automatically. Those who have been within the borderline of eligibility have felt that impact. We are currently developing a new poverty assessment system, which we will have by mid-2023. For example, we have a large group of able-bodied individuals, around 40,000, who can work but continue to receive state support. Therefore, our approach needs to focus on encouraging employment. Simultaneously, we are developing a labor strategy, one of the core principles of which is to lift people out of the poverty system through work.

According to him, since the pension increase resulted in some vulnerable pensioners falling out of the poverty system, they are discussing several options to address this issue: "We will try to reach a consensus on one of these options to solve this problem. Whenever we have had the opportunity to raise pensions and benefits, we have raised them immediately."