ArmInfo. The minimum monthly salary is expected to be raised by $35 (current exchange rate) by 2026 - from AMD 68,000 up to 85,000. Armenia's Minister of Labor and Affairs Narek Mkrtchyan sated at the Nov. 5 discussion of the 2022 draft state budget by the standing parliamentary committees, in reply to oppositional MP Tadevos Avetisyan.
On August 18, 2021, in presenting the government program for the next 5 years, RA Premier Nikol Pashinyan stated that the minimum monthly salary was to be raised under program. The MP noted that the minimum monthly salary in Armenia was AMD 68,000 this June, with the cost of the minimum consumer basket being AMD 70,000. The economist Avetisyan believes that the current cost of the minimum consumer basket is AMD 75,000. Next year, is it expected to reach AMD 85,000, with the budgeted inflation range of 5.2%-5.6%, whereas no increase in the minimum monthly salary is budgeted for next year.
Relevant work is in progress, the minister said. The government will spare no effort to achieve the program-set targets during the next five years.
On January 1, 2020, after a 4-year interval, Armenia's government raised the minimum monthly salary. The Cabinet's relevant decision involved 63,000 public servants and 130,000 private sector employees. According to the 2022 draft budget, budget expenditures as compared to the 2021 draft budget are expected to increase 1% in relation to GDP - up to 4.4% or about AMD 338bln. Current expenditures will increase by about 207bln - 23.4% of GDP. Specifically, next year as compared with this year, budget expenditures will increase by 18.2% - up to AMD 2,188.4bln. (27.8% of GDP) as compared with the 1,986.0bln (28.2% of GDP) expected by the end of this year, and AMD 1,894.6bln in 2020(30.6% of GDP). A total of 1,841.9bln or 23.4% of GDP will be allocated to cover current expenditures against the expected 1,762.2bln or 25.1% by the end of this year and actual 1,668.5bln or 27% of GDP in 2020. Current expenditures will constitute about 84.2% of the total average annual expenditures next year (88.3% budgeted for this year). The major reason for the increased expenditures is the planned increase in allocations for social benefits and pensions. Specifically, social protection expenditures are expected to reach AMD 571.844bln - an increase of AMD 44bln or 8.3% against the 527.873bln budgeted for this year and 559.072bln in 2020. Minimum pensions and social benefits are to be increased next year. However, the rest main indicators used for calculating pensions will remain at the 2021 level. Budget expenditures for salaries will increase by 3.9bln or 2.2% next year as compared with this year - up to 184.9bln. Social expenditures are expected to total 929,399.1mln or 11.8% of GDP against 806.603bln or 12.6% of GDP. Their share in the total budget expenditures is expected to go from 43.6% down to 42.5%
