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Payroll and Benefits Guide Armenia

Last updated: May 02, 2023

Currency
Armenian Dram (AMD)
Employer Taxes
Unknown
Payroll Frequency
Monthly
Employee Costs
10%
Capital
Yerevan
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
0.00%
0.00%
Total Employment Cost
Employee Employee Payroll Contributions
5.00%
Pension fund – if the monthly gross income is less than 500,000 AMD
10.00%
Pension fund -For monthly gross income higher than 500,000 AMD. Applied on salary up to 1,125,000 AMD monthly
5.00% -10.00%
Total Employee Cost
Employee Income Tax
20%
Flat Rate

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The National Monthly Minimum Wage is 75,000 AMD in Armenia and the minimum hourly wage is 500 AMD (those who work in hazardous environments earn a premium over their average salary).

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

The payroll cycle in Armenia is generally a monthly cycle, with wages paid on the 15th day of the following month.

13th Salary

There is no mandatory or customary 13th salary payment in Armenia.

Working Hours

General

The Republic of Armenia (RA Labor Code) states that the standard working hours are 40 hours per week and a daily work period is eight hours.

Overtime

In Armenia, overtime is calculated at 150% of the standard hourly rate for each hour of overtime worked.
Should an employee work nights, these are calculated at 130% of the standard hourly rate for each hour of night work.

The maximum working time (including overtime) should not exceed 12 hours per day (48 hours per week), including breaks. Overtime cannot be included in the salary.

Managers are exempt from overtime limitations and do not need to be paid an additional salary.

Leave

Annual Leave (vacation)

The minimum days of paid annual leave are based on the working week. If an employee works five days a week, they will be entitled to 20 working days annual leave; however, if an employee works six days a week, they receive 24 working days annual leave.

The annual leave cycle is based on the individual worker’s start date not from a fixed calendar month such as January to December. It is permitted to a carryover policy for unused leave.

Should employees work in stressful or high-risk conditions, the number of days of annual leave increases. Employees who work a five-day working week would receive an annual leave entitlement of up to 35 days in exceptional conditions. Those who work a six-day working week are entitled to up to 42 days of annual leave in extraordinary circumstances.
Generally, employees can access annual leave after six months of continuous work.

Public Holidays

Public holidays falling on the weekend are usually lost.

Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day
2 Jan 2024 Tuesday Second Day of the New Year
6 Jan 2024 Saturday Orthodox Christmas Day
28 Jan 2024 Sunday Army Day
8 Mar 2024 Friday International Women’s Day
24 Apr 2024 Wednesday Armenian Genocide Remembrance Day
1 May 2024 Wednesday  Labor Day
9 May 2024 Thursday Victory and Peace Day
28 May 2024 Tuesday Republic Day
5 Jul 2024 Friday Constitution Day
21 Sep 2024 Saturday Independence Day

Sick Days

Employees are entitled to receive paid sick leave from the first day to day five of sickness at 80% of the average salary, with the employer paying. From day six, the sick pay is covered by social insurance. If an employee is absent for fewer than 120 successive days or 140 days within a year, they remain entitled to their full benefits.
The Social Insurance Scheme is responsible for paying an employee’s sick leave if this is due to a work-related injury or illness. The employee may return to work when they are healthy enough to do so.

The employee must notify the employer on the first day of absence.

The employee must provide the employer with sick leave confirmation for all days of absence from the medical institution on the same day when he arrives to work after sick leave.

Maternity Leave

In Armenia, an employee is entitled to at least 140 days of maternity leave (70 days during pregnancy and 70 days following the child’s birth). The maternity leave entitlement increases to 155 days (70 days of pregnancy, 85 days from delivery) in the case of complicated childbirth. For multiple births, the leave entitlement would increase to 180 days (70 days of pregnancy, 110 days from childbirth).
Employers must provide paid maternity pay at 100% of the insured’s average monthly earnings (regardless of the number of years of covered employment) divided by 30.4 (average number of days in a month).

Paternity Leave

New fathers are entitled to 5 days of paid leave within the first 30 days of the child’s birth.

Parental Leave

Within the first month of the child’s birth, it is possible to request up to 5 days of paid parental leave.

Other Leave

Bereavement leave
Employers must provide employees with three days of unpaid leave to attend the funeral of a family member.

Marriage Leave
Employers must provide employees three days of unpaid leave in the event of their marriage.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Employers must have a valid reason to terminate an employee and must provide notice before doing so. The notice period is generally linked to the length of employment with the company.

Notice Period

The notice periods are as below:

An employee gives 30 days’ notice to resign unless a collective agreement outlines a longer period.

  • For the employer, during the probation period, only 3 days’ notice is required
  • For service of less than 1 year, 14 days’ notice is required
  • Between 1- and 5 years of service, 35 days’ notice
  • After 5 to 10 years of service, 42 days’ notice
  • More than 10 years of service, 60 days’ notice

Severance Pay

The reason for termination determines the severance pay should it be company related (i.e., the company is liquidated, the number of employees is reduced, or the employee is rehired in a previous job) the severance pay will be equal to the employee’s average monthly salary. Should the termination be employee-related, (i.e., long-term disability, old age, significant changes in working conditions, or an employee is called up for compulsory Military Service) the employee’s employment length will determine the severance pay as below:

fewer than 12 months of employment service – 10x average daily salary
Between 1- and 5 years of employment service –  25x average daily salary
Between 5 to 10 years of employment service –  30x average daily salary
Between 10 to 15 years of employment service –  35x average daily salary
More than 15 years of employment service –  44x average daily salary

Probation Period

Probationary periods are generally three months and will be referenced in the employee’s contract of employment. Should either the employee or the employer wish to terminate before the three-month probation period, either may terminate the employment contract with three days’ notice.

VISA

VISA

Individuals entering Armenia for business must obtain a work permit sponsored by their employer to work in Armenia legally.
Generally, a holder of an Armenian visa is not entitled to work in Armenia unless they also hold a work permit. However, some highly skilled foreign specialists, business owners, executives, and other workers are exempt from the work permit requirement. Unless a foreign individual is exempt from the work permit requirement, the employer must first obtain a work permit by applying to the Ministry of Labor and Social Affairs (MLSA) before the employee starts their employment.
The MLSA tests the Armenian market to ensure that there are no qualified and available Armenian workers to fill the position internally. When a work permit is granted, the foreign national can start working in Armenia, but it does have a fixed term and is renewable on request.
After obtaining the work permit, the foreign national must file an application for a temporary residence permit at the Passport and Visa Department of the Police in Yerevan. The application must be accompanied by the requested supporting documentation, including medical test results. The temporary residence card is issued within approximately 30-45 days of the application date if accepted.
Specific individuals may qualify for temporary residence in Armenia, including those entering on a contractual basis, international students, journalists, and researchers. Temporary residence is granted for one year and can be extended for a maximum of one additional year.

VAT

General

The general rate of VAT in Armenia is 20%.

Stay up to date on payroll & employment law changes

Version History

February 9, 2022
Employee Payroll Contributions: Pension changed from 3.50% to 4.50%
Personal Income Tax: Changed from 22.00% to 21.00%
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Questions & Answers

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Kaylee P.
Kaylee P.
2 years ago

Hi, can an employee receive payment for unused vacation days?

Erez Greenberg
Erez Greenberg
2 years ago
Reply to  Kaylee P.

Hi Kaylee, yes, the employee can choose to either receive unused annual leave or to receive monetary compensation in case of not using leave.

John
John
1 year ago

How many official holidays + vacation days are there in a year in Yerevan?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  John

There are 16 public holidays + 20 working days of paid vacation.

Cwchang23
Cwchang23
1 year ago
Reply to  Erez Greenberg

Hi, may I know if one taking paid leave , will he get deduction on salary due to leave taken?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Cwchang23

In Armenia, it depends on the company’s policies and any relevant labor laws. Generally, employees are entitled to paid leave, such as vacation time or sick leave, and this time off is typically factored into their salary.

Sara
Sara
2 months ago

How many sick days a year are mandated by law for an employee in Armenia?

Enny Shmurin
Admin
Enny Shmurin
2 months ago
Reply to  Sara

Hi, you can find all the information you need in this page.

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Payroll and Benefits Guide in Armenia

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Payroll and Benefits Guide
in Armenia

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Armenia
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CSV
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ICS
Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day
2 Jan 2024 Tuesday Second Day of the New Year
6 Jan 2024 Saturday Orthodox Christmas Day
28 Jan 2024 Sunday Army Day
8 Mar 2024 Friday International Women’s Day
24 Apr 2024 Wednesday Armenian Genocide Remembrance Day
1 May 2024 Wednesday  Labor Day
9 May 2024 Thursday Victory and Peace Day
28 May 2024 Tuesday Republic Day
5 Jul 2024 Friday Constitution Day
21 Sep 2024 Saturday Independence Day