This Is a Salary Increase – Just in a Slightly Different Way, Says Minister About Bonuses

The salaries of state officials have not significantly changed over the past 5-6 years. Discussions took place 1-2 years ago about the need for action, as it is evident that there are issues related to attracting qualified specialists and high-achieving individuals who earn considerably higher salaries in the private sector. Engaging them in the public system is not that easy for various reasons, one of which is indeed the level of those salaries. This was stated by Finance Minister Vahe Hovhannisyan during a press conference.

He noted, "It can also be said that people engaged in political or public activities are even more vulnerable compared to those in the private sector, and perhaps it was necessary to pay a bit more for that work."

The Minister's position is that simply raising the salaries of ministers, deputy ministers, or management staff is not entirely correct. A system needs to be implemented to set specific targets and make salary increases based on the evaluation of those targets, and that increase should not be uniform for everyone; that is, those who demonstrate better performance will receive a slightly higher salary, while others will receive somewhat less.

“We piloted this system starting at the beginning of last year, meaning that targeted goals were established for different departments. Then, halfway through the year, there was an evaluation process to see how well those goals were met,” the Minister clarified, adding, “I wouldn’t say this is a bonus because this is a salary increase – just in a slightly different way.”

According to the Minister, this is a bold step, and while previously someone might have been distributing cash without scrutiny, the process has now become transparent. “I think our society should, if not be at least satisfied, then not be angry about this. We have collected an additional 300 billion in taxes, which has been gathered because state officials are not engaged in business, do not sponsor businesses; freedom is given to conduct economic activities, people are engaged in that and pay those extra taxes, and yes, part of those taxes should be paid as salaries. I believe that senior public officials, who engage in quite intense and stressful work, should at least not think about certain social issues every day, so they can focus on fulfilling their commitment to excellence in their work,” he stated.