Armenia is considering extending its cashback program for pensioners for another three years, allowing eligible recipients to continue receiving refunds for cashless purchases made with their pension cards.
According to the newspaper Past, a draft amendment has been prepared to modify Government Decision No. 2339-L of December 28, 2023, which regulates the cashback initiative.
Under the proposal, the program would continue from January 1, 2027, through December 31, 2029, maintaining the existing procedures for calculating and distributing cashback payments.
The proposed extension is intended to provide continued financial support to pension recipients and encourage the use of cashless payment methods.
How Does the Cashback Program Work?
The initiative allows eligible pensioners to receive cashback on qualifying purchases made using their pension cards.
When pension recipients pay for goods or services through eligible cashless transactions, a portion of the expenditure is returned to them under the program’s established rules.
These refunds provide additional financial assistance alongside regular pension payments.
The initiative also encourages electronic payments, which form part of broader efforts to expand cashless transactions in Armenia.
The amount received by an individual pensioner depends on the applicable cashback conditions and the volume of qualifying transactions.
Why Is an Extension Necessary?
The current government decision establishes the cashback program for the period from January 1, 2024, to December 31, 2026.
It also provides for the calculation and payment of refunds from January 2024 through December 2026.
As the end of the existing program period approaches, the authorities are considering amendments that would ensure its continuation without a scheduled gap.
According to the explanation presented with the proposal, the extension would support long-term planning and allow the government to organize the necessary financing for the coming years.
Rather than introducing an entirely new benefit, the amendment would preserve an existing mechanism of financial support.
What Will Happen in 2027?
If the proposed changes are adopted, the cashback initiative will continue from January 1, 2027.
The program would remain in operation throughout 2027, 2028 and 2029, with the new end date set for December 31, 2029.
The proposal specifies that the existing mechanisms for calculating and paying cashback would remain unchanged.
This is an important distinction because the draft concerns the duration of the program, not an announced increase in cashback percentages or payment limits.
The available information does not indicate that the government is proposing a higher refund rate as part of this particular amendment.
What Does the Proposal Mean for Pensioners?
For pension recipients who regularly use bank cards for purchases, the extension could provide greater certainty about the continuation of cashback benefits.
The initiative may help households recover part of their everyday spending on eligible goods and services.
It could also encourage more pensioners to use electronic payments for routine transactions.
However, cashback payments are linked to qualifying cashless spending. They are not equivalent to a general increase in the basic pension amount, and individual refunds may differ.
Has the Government Approved the Extension?
The reported changes are currently presented as a proposal to amend the existing government decision.
Therefore, the extension through 2029 should not yet be regarded as a finalized measure.
If approved, the amendments would preserve the existing cashback calculation and payment system for an additional three years.
For now, the current decision provides for the initiative through December 31, 2026.
The key proposed change is the continuation of pensioners’ cashback payments until the end of 2029, without altering the existing payment mechanism.
