Yerevan/Mediamax/. Armenian government hopes that with the transition of the country to compulsory accumulative pension system, the level of shadow economy will start cutting down, Head of Financial Market Development Department of Armenian Ministry of Finance Karen Tamazyan stated in Yerevan today.

According to him, they expect that with the transition to accumulative pension system, the employees of enterprises will be interested in their salary to be fully reflected in tax reporting.

Karen Tamazyan also stated that if the pension volume now makes about 20-25% of the average salary volume, with the transition to the accumulative system, “the coefficient of compensation” will increase up to 40-50%.

Starting from January 1, 2011, Armenia is making a transition to voluntary accumulative pension system and since January 1, 2014, the compulsory component will come into effect. According to it, all citizens of Armenia, born after January 1, 1974, will have to make pension deductions at the volume of 5% from the salary.