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ACCUMULATIVE PENSION SYSTEM LEADS TO SHADOW EMPLOYMENT IN ARMENIA
by Arthur Yernjakyan
ARMINFO
Wednesday, February 19, 17:22
The introduction of the compulsory accumulative pension system in
Armenia has led to growth in shadow employment, Gagik Makaryan,
Chairman of the Republican Union of Employers of Armenia, said at
today's press conference.
He said that employees of not only private companies but also state
organizations are protesting against the given system. The new law
forces the employees to enter into a collision with their employers
and conceal their real earnings, Makaryan said.
He added that the law implies rather tough sanctions, even arrest
and confiscation of property, i.e. the sanctions are similar to those
imposed in case of tax evasion.
To recall, the voluntary accumulative pension system was introduced in
Armenia on Jan 1 2011. The system has become compulsory starting Jan
1 2014. According to the law, the minimal pension in the country will
be equal to the minimum wage, while the basic pension will total 150%
of the minimum wage. The compulsory accumulative pension system will
apply to the citizens born after Jan 1 1974 (the citizens below 40).
Starting Jan 1 2014, 5% of their salaries will be transferred to
their personal accumulative accounts. The government will transfer a
similar amount (but no more than 25,000 drams). The introduction of
the compulsory accumulative pension system has sparked mass protests.
From: Emil Lazarian | Ararat NewsPress
by Arthur Yernjakyan
ARMINFO
Wednesday, February 19, 17:22
The introduction of the compulsory accumulative pension system in
Armenia has led to growth in shadow employment, Gagik Makaryan,
Chairman of the Republican Union of Employers of Armenia, said at
today's press conference.
He said that employees of not only private companies but also state
organizations are protesting against the given system. The new law
forces the employees to enter into a collision with their employers
and conceal their real earnings, Makaryan said.
He added that the law implies rather tough sanctions, even arrest
and confiscation of property, i.e. the sanctions are similar to those
imposed in case of tax evasion.
To recall, the voluntary accumulative pension system was introduced in
Armenia on Jan 1 2011. The system has become compulsory starting Jan
1 2014. According to the law, the minimal pension in the country will
be equal to the minimum wage, while the basic pension will total 150%
of the minimum wage. The compulsory accumulative pension system will
apply to the citizens born after Jan 1 1974 (the citizens below 40).
Starting Jan 1 2014, 5% of their salaries will be transferred to
their personal accumulative accounts. The government will transfer a
similar amount (but no more than 25,000 drams). The introduction of
the compulsory accumulative pension system has sparked mass protests.
From: Emil Lazarian | Ararat NewsPress