YEREVAN. – It is a bold decision to start the funded pension deductions from salaries as of July 1.

Armenian Prime Minister Hovik Abrahamyan on Friday noted the aforementioned at the parliamentary deliberations regarding the bill on making amendments to the Law on Funded Pensions. 

Abrahamyan recalled that, as of July 1, the salaries of Armenia’s state employees will increase by up to 40 percent. And to this end, the government has allocated 38 billion drams (approx. $92 million).

“As you know, for them [the state employees] the mandatory funded [pension cut] system will start operating as of July 1, whereas for the private sector workers, as of July 1, 2017,” the PM stated.

As per Hovik Abrahamyan, this is a bold step, since the funded pension reform will encompass tens of thousands of people already in the first phase.