Armenia’s social package program will end from January 2027, Minister of Labor and Social Affairs Arsen Torosyan announced following the government meeting on October 1.
According to the minister, the program has been in operation since 2012 and has already fulfilled the purpose for which it was introduced.
Torosyan said the social package will be replaced, in part, by a broader health insurance system offering working citizens a higher level of medical coverage. From January 2027, the health insurance system is also expected to cover employees earning less than 200,000 AMD per month.
The minister described the existing social package as a targeted solution designed for certain groups of public-sector employees and said it had initially been considered an alternative mechanism to salary increases.
What Will Happen to Money Already Accumulated?
Torosyan emphasized that current beneficiaries will not lose money already accumulated in their social package accounts.
According to him, approximately 13 billion AMD is currently accumulated in bank accounts under the program.
Citizens will continue to have access to these funds. The government is expected to adopt a separate decision defining how the accumulated money can be spent.
Torosyan noted that the permitted uses are unlikely to differ significantly from the current rules, although discussions are still underway and no final decision has yet been made on this issue.
The minister also said that public-sector salaries are expected to increase from January 1, affecting tens of thousands of citizens, many of whom are currently beneficiaries of the social package.
At the same time, employees earning less than 200,000 AMD are expected to be included in the new health insurance system from January 1, 2027.
