The Armenian parliament adopted amendments to the law “On funded pension”
The Armenian parliament adopted amendments to the law “On funded pension” at the extraordinary meeting on June 21 in the second and final reading.
According to the draft, the Minister of Finance of the Republic of Armenia Atom Janjughazyan noted, from July 1, 2018 the accumulative pension system will become mandatory for all citizens of Armenia. At the same time, the proportion of payments varies – citizens will pay 2.5% of their wages to their accounts in fund managers, and the state – 7.5%. As the minister noted, this measure will be temporary, until the size of the income tax is reduced, after which the current proportion (5% on each side) will be restored. Currently, the system employs 200,000 people, representing the sphere of public service. From January 1, 2018, another 50,000 beneficiaries, born after January 1, 1974, representing the private sector, will supplement them.