The Armenian government has approved a package of legislative amendments that would revise the pay system for a number of public sector officials from January 1, 2027. Under the proposal, monthly salaries for the heads of large communities could rise to around 1.2 million drams.
Presenting the draft at a cabinet meeting, Deputy Prime Minister Tigran Khachatryan said the current average monthly salary of employees holding professional positions in many ministries stands at 250,000-350,000 drams. If performance indicators reach 80% or higher, he said, their pay would move into the 400,000-500,000 dram range.
Khachatryan added that department heads who now earn up to 400,000 drams a month could receive as much as 740,000 drams after the new mechanisms are introduced, including bonuses.
Pay for community heads
The changes also cover community leaders. Minister of Territorial Administration and Infrastructures David Khudatyan said they currently earn between 250,000 and 500,000 drams a month, with the average at about 350,000 drams. The current maximum salary of 500,000 drams applies to heads of communities with populations of 75,000 and above.
For enlarged communities, salaries are proposed to start at 700,000 drams, while the average gross pay would be about 1 million drams, he said. In communities with populations of 75,000 or more, the head’s salary could reach approximately 1.2 million drams.
Additional budget costs
According to Khachatryan, implementing the changes would require an additional 25 billion drams a year from the state budget compared with 2026.
The new system will not apply to employees who are already covered by a separate incentive scheme. The deputy prime minister said the reform is intended to link pay to performance, improve the efficiency of state bodies and make public service more attractive and competitive.
Prime Minister Nikol Pashinyan called the objective of the reform strategic, saying the system makes it unavoidable for a public official to work on improving their own skills. The government-approved package will now be sent to the National Assembly of Armenia, and the new system is expected to take effect on January 1, 2027.
