Pensions in Armenia will be able to see substantial growth only if the number of working citizens doubles, Prime Minister Nikol Pashinyan stated during the discussion of the 2025 state budget in parliament.
“It’s important to understand how pensions are funded. Currently, there are 754,431 retired and benefit-receiving citizens in Armenia. These pensions are paid thanks to the working citizens. Meanwhile, the number of employed individuals in Armenia is just 768,547,” the Prime Minister explained, adding that pensions can be significantly raised only when the number of employed citizens exceeds the unemployed by 60-300%.
He added that even eliminating the salaries and bonuses of public servants, including expenses for government vehicles, would increase pensions by only $23.
The Prime Minister also noted that if only the bonuses for civil servants were cut, pensions would increase by a mere $2.6. Instead, the government has implemented a system of cash returns, through which pensioners receive an average refund of about $7.7.
Pashinyan highlighted that some employees in the tax service earn up to $2,577 per month, and management “begs them not to resign.” He warned that a complete reduction of the state apparatus would collapse the tax collection system and lead to school closures.
The Prime Minister also emphasized a key achievement: for the first time, the minimum pension in the country has surpassed the cost of the minimum food basket.
