Vahagn Hambardzumyan: The implementation of the compulsory accumulative pension system will increase the state budget expenditures by 12-15 billion drams per year

Member of the State Revenue Committee (SRC) Vahagn Hambardzumyan stated that the opponents of the compulsory accumulative pension system have concerns about both in government and international administrations.

All hired workers who born after July 1, 1974, will join this system. Before July 1, 2018, 207 thousand hired employees used the compulsory component, and about 80 thousand employees would join them in a month.

“Payers, including those who used to pay before July, will start paying less. Before that, the hired workers had to pay 5% of their salary and the other 5% had to pay the state. In this system, the government went to a compromise. The employee will pay 2.5% of the salary, and the state will pay 7.5%,” said a member of the SRC.

And with whose money will the state  pay that 7.5%? Is there so much money in the state budget? Vahagn Hambardzumyan is also worried about these issues.

According to Hambardzumyan, the law does not specify how much time will be given to this 2.5% mitigating provision.

“There are no clarified dates, it is mentioned until the adjustment of adequate income tax regulations. The implementation of the compulsory accumulative pension system will increase the state budget expenditures by 12-15 billion drams per year.”