Government proposes changes to funeral benefit procedure, funds to be redirected to pension increases

The Ministry of Labor and Welfare proposes to no longer provide the “funeral benefit” to all groups, instead directing the funds allocated for it toward increasing pensions. 

“There has always been a question about whether the ‘funeral benefit’ was appropriately targeted,” Minister of Labor and Welfare Arsen Torosyan told reporters.

“We have decided to direct those funds to pensioners, while retaining the benefit for certain groups who will have greater need to cover these expenses. We are referring to citizens included in the social assistance system,” Torosyan said.

Torosyan said the change is planned to take effect on January 1, 2027. An additional AMD 5.5 billion will be added to the funds saved by abolishing the “funeral benefit” to increase pensions.

“We will increase the minimum pension, which is currently AMD 46,000, to AMD 47,000; there will be an AMD 500 increase in the amount used to calculate labor pensions based on years of service; and the pensions of citizens receiving military pensions will increase,” the minister said.

Under current law, the “funeral benefit” is AMD 200,000 and is provided when a pensioner or a family member receiving a social assistance benefit dies.