Prime Minister Nikol Pashinyan chaired a consultation, during which the draft concept of the new Insecurity Assessment System was discussed. It was developed by the interdepartmental commission established in 2021 in accordance with the instructions of the Prime Minister.
Before the draft concept would be presented, Nikol Pashinyan referred to the data presented at the Cabinet meeting regarding the average monthly salary and noted. “The average monthly salary in December 2023 was AMD 356,180, which is AMD 133,399 or 59.9 percent more compared to December 2018, a little lower than I expected. Compared to December 2022, it is more by 25,273 AMD or 7.6 percent.”
Presenting the concept of the new Insecurity Assessment System, Deputy Minister of Labor and Social Affairs Anna Zhamakochyan first presented the problems in the current system of insecurity assessment related to the formula, addressability and effectiveness of the system.
Next, the Deputy Minister of Labor and Social Affairs presented details about the new system’s implementation policy, goals, new formula, and hybrid verification method based on the system. According to Anna Zhamakochyan, the flaw in the formula of the current system is that based on the indirect assessment of vulnerability, assumed insecurity is measured and the calculation of income plays a secondary role. “The most important thing we need to change is changing the formula in the new system, that is, not only the procedures, not only the issue of the target, but the logic of the formula itself. Taking this into account, the hybrid means-testing method was chosen as the basis of the new formula. At the moment, the most important thing is to put the income measurement in the logic of the formula, so that the real picture of our insecurity and the estimated insecurity is visible and understandable, and the policy of the Government is measurable,” said the Minister of Labor and Social Affairs. According to Anna Zhamakochyan, through the new method, the right to benefit will be determined based on the family income.
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According to Anna Zhamakochyan, the target of the new system is the extremely poor family with monthly income below the Minimum Expenditure Basket. “With this model, it is proposed to target extremely poor groups and achieve the goal that the Government has set before itself, that is, to have 0 percent extreme poverty,” said the deputy minister.
According to him, through the new system, necessary efforts will also be made for those registered in the insecurity system to obtain employment and improve living conditions through capacity development. According to Anna Zhamakochyan, integrated case management will be implemented, that is, social work will be conducted with families based on complex needs.
In terms of encouraging people to work, the Prime Minister emphasized that there are various programs in the labor market and added. “We can plan further incentives to increase interest among both the employer and the employee. What’s the point of what I’m saying? A person has been in the benefit system for 20 years, and for 20 years the state spends huge resources for him, but his life does not improve. This is the problem. We have to approach this program in the logic of these 20 years, because we can accompany him with subsidies, income tax, and other programs before the work we mention becomes a mentality for him.”
An exchange of ideas on the draft concept took place, observations were presented about the process of transition from the old system to the new system, the steps for launching the new system, the features of the hybrid method, and the expected results.
Summarizing, the Prime Minister noted that the results of the discussion show that the package has been developed and the implementation of the new system can be started.
INFORMATION AND PUBLIC RELATIONS DEPARTMENT OF THE OFFICE OF THE PRIME MINISTER OF THE REPUBLIC OF ARMENIA
