Armenia plans to implement a new compensation system for public officials starting January 1, 2027, which will require approximately 30 billion drams in additional funding from the state budget.
According to «Armenpress», the relevant legislative package has been developed by the office of Deputy Prime Minister Tigran Khachatryan and the Civil Service Office of the Prime Minister's Office.
The project proposes to revise the coefficients for calculating the basic salary of public servants, introduce a performance-based bonus system, and modify the existing reward mechanisms.
“The adoption of the project will introduce a new compensation system, including performance evaluation, which will allow for an adequate correlation between the amount of compensation and the level of responsibility and competencies, as well as the results of work as a significant factor in improving work efficiency and the quality of public services,” the project's justification states.
Performance evaluation is defined as a comparison of the goals of a state body and the results achieved based on measurable indicators and verifiable methods. The results of the evaluation will serve as the basis for providing incentive measures to state bodies and bonuses to employees.
According to the project, additional salaries cannot exceed 60 percent of the total amount of basic and additional salaries. This limitation will not apply to military personnel occupying positions in the defense, national security, state protection, and police systems, as well as employees of foreign intelligence, penitentiary, rescue, and probation services.
Rewards are planned to be provided only for the performance of special tasks. The reward fund of each state body cannot exceed 2 percent of the salary fund allocated for filled positions in that body. Providing rewards from saved funds in the salary fund will not be allowed.
The basic salary is proposed to be legally fixed at 83,200 drams instead of being determined by the annual state budget law.
Additional allowances and bonuses provided to public officials will also be reviewed. The amount of certain allowances for prosecutors, investigators of the Investigative Committee, and the Anti-Corruption Committee is planned to be reduced from 92 percent to 50 percent, while for several other positions, existing allowances will be eliminated by integrating them into the coefficients for calculating the basic salary as much as possible.
The total amount of allowances for length of service for judges, members of the Supreme Judicial Council, prosecutors, and relevant officials of the Investigative Committee and the Anti-Corruption Committee cannot exceed 30 percent of the official salary rate.
The project also plans to review the pension guarantees for employees of certain law enforcement agencies. For prosecutors, investigators of the Investigative Committee, holding autonomous positions, and employees of foreign intelligence, one of the conditions for pension eligibility will be reaching the age of 60.
The introduction of the new system should not lead to a reduction in the total amount of basic and additional salaries for public officials. If the salary calculated under the new rules is lower than the previously paid amount, the existing amount will be maintained until the new calculation equals or exceeds it.
The main part of the legislative changes is planned to come into effect on January 1, 2027.
