ArmInfo.Regardless of whether we raise the minimum wage or not, wages in the real sector are growing, including thanks to competition," as stated by Minister of Labor and Social Affairs Arsen Torosyan, in response to a parliamentarian's question during a government hour about the government's unfulfilled promise to raise the minimum wage from 75,000 drams to 85,000 drams according to the government's 2021-2026 program.
In this context, he noted that low-paying jobs in Armenia are transitioning to high-paying ones. "In January 2026 alone, compared to January 2025, we recorded a reduction in jobs with salaries below 100,000 drams. This is due to an increase in jobs with salaries exceeding 150,000 drams. About 12,000 jobs have moved into the sector with salaries exceeding 150,000 drams," he said.
The Minister said that their goal is to ensure growth in real wages through economic development. He also assured that Armenian citizens are already experiencing this. "I think we're on the right track and should focus on this, rather than raising the minimum wage to 85,000 drams, 105,000 drams, etc.", the head of the department emphasized.
It should be noted that according to the study "Minimum Wage and Socioeconomic Reality in the Republic of Armenia," prepared by the Friedrich-Ebert-Stiftung in collaboration with the Confederation of Trade Unions of Armenia, the cost of the minimum consumer basket in 2024 exceeded the minimum annual wage. It was noted that there is a need to develop an objective methodology for calculating the cost of the minimum consumer basket, a methodology for calculating the minimum wage, and enshrine this in legislation.
According to experts, the most appropriate mechanism for Armenia would be an automatic mechanism for revising the minimum wage, or the government should be obligated to regularly revise the minimum wage. During the transition period, according to the study's recommendations, the minimum wage in Armenia should be raised to 90,000-100,000 drams-that is, until a methodology is developed that will enable more objective indicators. According to the World Bank's "Armenia Economic Pulse: Fairer Markets for Inclusive Growth" report, the poverty rate in Armenia in 2022 (PPP $8.30 per day) was 55.7%, in 2023 it was 56.9%, and in 2024 it was 56.2%. Moreover, WB experts believe that by 2027 the poverty rate will decrease to 53.1%.
