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Pension Reform Leads Salaries To Shadow - Armenian Union Of Employer

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  • Pension Reform Leads Salaries To Shadow - Armenian Union Of Employer

    PENSION REFORM LEADS SALARIES TO SHADOW - ARMENIAN UNION OF EMPLOYERS

    May 01, 2014 | 14:22

    YEREVAN. - The pension reform inArmenia aims to legalize the people's
    income yet the opposite occurred; the salaries remain in the shadow.

    Economist Gagik Makaryan, who is also Chairman of the Republican Union
    of Employers of Armenia, stated the aforesaid at a press conference
    on Thursday,

    In his view, now numerous employees in Armenia are asking their
    employers not to formally register their salaries, so as not to have
    pension deductions from their wages.

    "The social situation in Armenia is such that the people are prepared
    to even forego accumulating work experience just to receive the salary
    in full," Makaryan stated.

    That is why, he added, the funded pension system is premature for
    Armenia.

    The new funded pension plan formally came into force in Armenia on
    January 1, 2014 for those born in and after 1974. In line with this
    plan, 5 to 10 percent of the monthly salaries in Armenia will be
    deducted and be allocated to cumulative pension funds; the latter
    will be reimbursed as pensions once a person turns 63 years old.

    On April 2, however, the Constitutional Court of Armenia declared
    unconstitutional a whole series of articles in the new Law on
    Funded Pensions, and gave the parliament and the government until
    September 30 to amend the aforesaid law's provisions that were deemed
    unconstitutional.

    Subsequently, the new government formed by newly appointed PM
    Hovik Abrahamyan announced its willingness to temporarily leave the
    aforesaid pension deductions on voluntary basis, and to prepare a
    new bill before the September 30 deadline.

    News from Armenia - NEWS.am




    From: A. Papazian
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