Armenia merges three employment support programs into one, offering vouchers of up to AMD 250,000

Armenia’s government has approved a new employment support program that will provide vocational training vouchers worth up to AMD 250,000, reimburse part of the income tax paid by employers who hire program beneficiaries, and offer financial incentives to workers who remain employed.

Presenting the program at the Cabinet meeting, Minister of Labor and Welfare Arsen Torosyan said it would consolidate three existing programs targeting able-bodied members of socially vulnerable families, discharged military servicemen and people displaced from Karabakh.

Under the new program, eligible beneficiaries will receive a one-time electronic voucher worth up to AMD 250,000 to cover vocational training. The voucher must be used within six months at organizations offering modular non-formal education programs endorsed by the Ministry of Education, Science, Culture and Sports. Beneficiaries will receive certificates upon completing their training. Training providers will be paid within 10 working days after confirmation that a beneficiary has received a completion certificate, with reimbursement capped at the voucher’s value.

Employers who hire voucher-trained beneficiaries in their respective fields will be eligible for income tax reimbursements. For the first three months of employment, the reimbursement will cover 50% of the income tax calculated and paid on the employee’s salary, up to AMD 25,000 per month. For months four through six, it will cover 100%, up to AMD 50,000 per month. Employers must sign employment contracts for at least three months, generally on a full-time basis, subject to exceptions provided by law. Public service bodies and organizations in which the state or a municipality holds at least a 50% stake are not eligible for this component of the program.

Workers will also receive direct financial support if they remain employed by the same employer: AMD 100,000 after three months and an additional AMD 200,000 after 12 months.

The program will be available to unemployed citizens discharged from compulsory military service less than two years earlier, people displaced from Karabakh in 2020 and 2023 who are unemployed in Armenia, and able-bodied members of socially vulnerable families whose per-capita monthly household income is below 130% of the threshold for qualifying for social assistance. The first two groups must also have received no salary or equivalent payments in the preceding three months.

Restrictions will also apply based on participation in previous employment programs and previous employment relationships with the same employer.

Applications and eligibility checks will be processed digitally through the e-work.am platform.

The government expects to support 1,500 beneficiaries in 2027, with funding estimated at AMD 862.5 million, to be allocated from funds earmarked for the three existing programs. Payments for beneficiaries who maintain employment for 12 months are planned for the 2028 budget.

The program will enter into force on January 1, 2027.

The merger is partly prompted by low participation in the existing programs. As of October 1, 2026, the program for discharged servicemen and participants in military operations had enrolled 129 people against a target of 500 for the year, while the program for displaced people had enrolled 306 against a target of 1,000. As of July 1, the program for able-bodied members of socially vulnerable families had enrolled 64 people against a target of 679.