From January 1, pensions and benefits will have the same cashless payment procedure

Starting from February 1, 2023, new benefits designated for communities with 1,000 or more residents will be paid in a cashless manner, whereas for communities with fewer than 1,000 residents, this will begin on July 1, 2023. This was stated by the Deputy Minister of Labor and Social Affairs, Davit Khachatryan, while presenting the proposed regulations for the payment process of family benefits, according to the National Assembly's press service.

“For already established and designated family benefits, the mandatory transition to cashless payments will start on July 1 for cities and communities with more than 1,000 residents, while for those with fewer than 1,000 residents, it will begin on January 1, 2024. From January 1, 2024, pensions and benefits will follow the same cashless payment timetable,” he explained.

Next, the changes pertain to the payments of pensions. According to the existing regulations, there are two options for cashless payments: the payments are carried out by banks and through Haypost's electronic money account, which was mainly cashed out by beneficiaries. Starting February 1, 2023, it will no longer be possible to cash out through an electronic money account based on a social account, therefore it is proposed that transactions of Haypost's electronic money accounts be transferred to banks, meaning that payments will be made via bank cards.

In response to a clarifying question from the commission chairman, Heriknaz Tigranyan, the deputy minister clarified that all applications and benefits assigned before February 1, 2023, will be provided either in cashless or cash form at the beneficiary's discretion, but thereafter, in localities with more than 1,000 residents, including cities, the process will be conducted in a mandatory cashless manner, while residents of communities with fewer than 1,000 will have the option to choose voluntarily until July 1.

Proposed amendments and additions to the laws on “State Benefits” and “State Pensions” were discussed for a second reading at the extraordinary meeting of the National Assembly's permanent commission on Labor and Social Issues on December 5. It is noteworthy that the discussion of the package of drafts was interrupted during the December 2 meeting for the purpose of clarifying certain issues. The legislative package was approved by the commission.