A new method of calculating pensions is set to be introduced from January 1, 2024, according to the Minister of Labor and Social Affairs, Narek Mkrtchyan. This development was announced during the National Assembly’s discussions on the budgetary appropriations for the 2024 fiscal year. The current system ensures that the pension value at the age of 1 year is not higher than the sum of the pension value at the age of 10 years and the increase in the consumer price index for each year. The upcoming changes will take into account the main pension and the increment in the consumer price index for each year when determining the minimum pension age. Additionally, the number of years of service needed to qualify for an increased pension will be raised.”

Furthermore, Minister Mkrtchyan highlighted that the new pension system will incorporate a mechanism to generate value for active contributors. This means that individuals who can still contribute actively to the labor market will have the opportunity to continue doing so. The aim is to ensure that those who are able to create value remain engaged and active even after reaching the eligible pension age.