Government Raises Minimum Pension, Poverty Benefits

Armenia - A cabinet meeting in Yerevan, November 29, 2018.

The Armenian government announced on Thursday increases in the minimum amount of modest pensions and other benefits paid to tens of thousands of people.

The measure, effective from January 1, will benefit some 85,000 elderly or disabled persons as well as individuals who lost their sole breadwinners. They all will be paid 25,500 drams ($53) per month.

The government said the sum will match the new extreme poverty line that will be set by it for next year.

The total number of retired people in Armenia aged 65 and older exceeds 497,000. Nearly seven percent of them are not eligible for normal pensions because of their insufficient work experience. They currently receive 16,000 drams each in monthly retirement benefits, compared to 21,500 drams paid to Armenians with various disabilities.

The average pension in the country stands at around 41,000 drams.

Arsen Manukian, a deputy minister of labor and social affairs, told RFE/RL’s Armenian service (Azatutyun.am) the pay rises will cost the state budget around 6.7 billion drams in 2019. Manukian said the government is committed to eventually raising regular pensions as well.

The government’s 2019 budget approved by the parliament last week projects no such rises. It calls for 444 billion drams in total social spending.