Increasing pensions in Armenia will cost the state 5.6 billion drams – approximately 77% of the costs will be covered by the abolition of funeral benefits

ArmInfo. New legislative amendments in the social sphere will limit the circle of beneficiaries receiving funeral benefits. As Anahit Galstyan, Head of the Department of Pension Provision and Other Cash Payments at the RA Ministry of Labor and Social Affairs, noted during a press conference, these payments in Armenia, starting January 1, 2027, will be received exclusively by individuals who have undertaken to organize the funerals of pensioners or members of socially vulnerable families.

In total, the state will allocate approximately 5.6 billion drams to implement this initiative, of which approximately 77%, or 4.3 billion drams, are funds saved by abolishing funeral benefits for other RA citizens.

Moreover, pensions and benefits will be increased depending on length of service (in the case of pensions) and the level of disability (in the case of benefits) - from 500 to 1,200 drams, and this is against the backdrop of an almost exponential increase in government officials' salaries.

According to Galstyan, pensions and benefits will be increased by 2,500 drams. Benefits paid to children deprived of both parents; military pensions for officers and non-commissioned officers by an average of 1,144 drams; mandatory conscripts on the regular staff with disabilities by 1,400 drams; and family members of deceased service members by 1,400 drams. Social pensions paid for disability, old age, and loss of a breadwinner will be increased by 1,000 drams.

The new regulations also provide for a transition to online death notifications to ensure the fastest possible payment of funeral benefits, the amount of which remains unchanged at 200,000 drams.

Because the main goal is efficiency, meaning this is an expense that a person needs within a short timeframe. After applying, we were able to pay the benefit within two days, but we will try to reduce this period as much as possible," she said. In general, after a funeral, a citizen has the right to apply for benefits within six months; if the application is submitted later, the payment will not be transferred.

As a reminder, the government earlier approved a bill to almost substantially increase the salaries of government officials starting January 1, 2027. Thus, Prime Minister Nikol Pashinyan, in particular, if approved by parliament, will receive a salary of 2,662,000 drams ($7,353) instead of the current 1.5 million ($4,143). Deputy Prime Ministers' salaries will be 2,163,000 drams ($5,975) instead of 1,289,000 drams ($3,560). The Ombudsman and Prosecutor General will receive up to 1.8 million drams ($4,965), the Speaker of Parliament and the Chairman of the Constitutional Court will receive up to 2.4 million drams ($6,620), and members of parliament will receive up to 1.4 million drams ($3,862). This means that raising government officials' salaries will cost the state 25 billion drams ($69 million).

It's noteworthy that the government had no difficulty finding funds to increase its own salaries, but in order to increase pensions and benefits by an average of 1,000 drams, Armenian citizens were deprived of payments intended for the funeral expenses of their relatives.