New Formula for Higher Pension Benefits to Be Implemented, Minister Details

Starting January 1, 2024, a new formula for calculating pensions will be implemented in Armenia. Minister Narek Mkrtchyan announced this during a session in the National Assembly.

Firstly, the minimum pension, currently set at 36,000 drams, will be eliminated. Additionally, the calculations for the first 10 years of work experience will be equalized with subsequent years (currently, 950 drams are accrued for the first 10 years, while 500 drams are accrued for the subsequent years).

“There will no longer be a situation where the value of one year of work experience up to 10 years is higher than that of one year for experienced individuals beyond 10 years. The concept of a minimum pension will disappear, and pensions will consist of a basic pension supplemented by the value accrued for each year of experience. A coefficient will also be introduced to encourage longer work experience, thus promoting continued employment,” the minister stated and added, “Moreover, we have made an amendment to the law with the support of the National Assembly to keep senior citizens active in the labor market, whereby the pension age will not be a threshold for terminating a contract by the employer. In other words, if senior citizens are still capable of creating value, they will continue to remain active in the job market.”

Minister Narek Mkrtchyan emphasized that there will be a new voluntary mechanism allowing individuals to postpone their pension age by at least one year in exchange for receiving a higher pension later.