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The Armenian government will make its first decision on indexing pensions as of January 1, 2028, Prime Minister Nikol Pashinyan has said.
Pashinyan announced the decision to index pensions, that is, to increase pensions in line with inflation, during a pre-election campaign visit to Tavush Province in March 2026.
“I said during the campaign that we would make the first such decision as of January 1, 2028. Why? Because you know that every year the Statistical Committee publishes the economic results of the previous year in February, meaning that we cannot know the annual inflation figures any earlier, while the budget process begins in April-May. So, as I announced, that is what we will do: the first such decision will be as of January 1, 2028,” Pashinyan said at a press briefing when asked about the matter.
In this context, the prime minister also addressed the expansion of the coverage of universal health insurance.
“We discussed yesterday the issue of including those earning salaries of up to 200,000 drams in the universal health insurance system, and I set the task for this to happen as of January 1, 2027. We have a preliminary scheme under which, based on the results of 2027, we will divide this expense between the Government, the employer and the beneficiary, on the logic that the beneficiary, that is, a citizen earning a salary of up to 200,000 drams, pays 2,000 drams less to the military insurance fund as of January 1, 2026. As of January 1, we will redirect that amount toward purchasing health insurance and will also distribute it between the employer, while as of January 1, 2028, that expense will be distributed between the employee and the employer.
Here, it should also be taken into account that through the universal income declaration system, employees will receive 6,000 drams back each month. This means that starting in 2028, every month, of course calculated at today’s prices, citizens will pay 6,000 drams, while the employers will pay the remaining amount, until the salary exceeds 200,000 drams. Once it exceeds 200,000 drams, the purchase of health insurance will take place according to the standard procedure,” Pashinyan said.
Asked whether a decision could be made in the near future to increase the minimum wage in Armenia, Pashinyan replied that the Armenian government prefers to resolve the issue of people obtaining health insurance rather than increase the minimum wage.
“If we have a choice between increasing the minimum wage and resolving the issue of obtaining health insurance, which would be the right thing to do? Of course, health insurance. For us, it is more important to ensure people’s basic healthcare needs, also based on the assumption that in the segment of those earning 200,000 drams or less, there is nevertheless the greatest level of undeclared wages.
Unfortunately, the practice of paying wages in cash has not disappeared in Armenia, and we want not to encourage this, but to create incentives so that this shadow economy is reduced,” Pashinyan said, while emphasizing that the minimum wage in Armenia is 75,000 drams and that even if they decided to double it, those receiving the minimum wage would still not be included in the universal health insurance system through that route.