Reduction of Compensation Amount for Highly Qualified Specialists' Salaries

The government will reduce the compensation amount for the salaries of highly qualified specialists and other payments equivalent to it within the framework of the targeted program for the involvement of highly qualified specialists. Additionally, the duration of the Productivity Enhancement Targeted Program will be extended for another year. This draft decision was approved at the government meeting today.

Economy Minister Gevorg Papoyan recalled that the government had approved the Productivity Enhancement Targeted Program back in March 2020. The support is provided in the form of a subsidy for 6-10 percent of the annual interest rate on targeted loans or leasing. From March 2022 to December 1, 2024, 6,559 contracts have been signed within the program, with a total portfolio of 341.8 billion drams. 82 percent of the portfolio formed within the targeted program was directed to financing small and medium-sized enterprises.

“Considering the high demand for the program, the large number of potential beneficiaries, as well as the stated goals, it is proposed to extend the deadline of the targeted program to December 31, 2025. It is also proposed to reduce the turnover requirement for consulting and auditing organizations from 500 million drams and above to 400 million drams, thereby expanding the possibility of involving more consulting and auditing organizations,” said Papoyan.

By another government decision, the Targeted Program for the Involvement of Highly Qualified Specialists was established, aimed at increasing the productivity of companies operating in Armenia by supporting entrepreneurs in attracting highly qualified specialists. Under the targeted program, 20-70 percent of the salaries calculated for the involved highly qualified specialists and other equivalent payments are compensated by the government. From January 2023 to December 1, 2024, approximately 763 applications have been received from around 60 organizations. Currently, there are 45 beneficiary organizations involving 510 highly qualified specialists.

“It is proposed to remove operators engaged in financial and insurance activities as well as wholesale and retail trade from the list of beneficiaries. Financial and insurance activities have high self-financing capabilities due to existing revenue and profitability levels. On the other hand, we consider wholesale and retail trade to be highly competitive and often a low-value-added sector. Additionally, the compensation amounts for the calculated salaries of highly qualified specialists and other equivalent payments are being reduced; establishing 10 instead of 20, 30 instead of 50, and 50 instead of 70,” stated Papoyan, adding that more than 95 percent of the beneficiaries are from the high-tech sector.