Grisha Balasanyan

Minimum Wage Rise: How Long Can You Live on 35,000 AMD?

RA Finance Minister Vache Gabrielyan today introduced a bill in parliament that would raise the monthly minimum wage in Armenia by 2,500 AMD to 35,000 AMD ($86.19).

Heritage Party MP Zarouhie Postanjyan asked the minister how many days a person could survive on the new wage rate.

Minister Gabrielyan confessed that he couldn’t say for sure, but noted that people would have more money to spend after January 1, 2013.

Postanjyan revised her question and asked what a person could buy with the additional 2,500 AMD. Gabrielyan responded that a person could buy many items in the “consumer basket”.

Prosperous Armenia Party MP Nayira Zohrabyan chimed in and urged the minister to reveal the minimum consumer basket given the terrible inflation inArmenia.

“Of course 35,000 AMD will not cover the minimum basket, but we are proposing that the problem be solved slowly. There are different studies regarding the minimum consumer basket. About 50,000 would cover it. We plan to raise the minimum wage rate to 45-54,000 by 2013-2014,” Minister Gabrielyan stated.

He also disagreed with Zohrabyan’s comment about the inflation rate, to which the Prosperous Armenia MP retorted, “As a consumer, I see that the rate is terrible.”