Hire employees
and contractors in Armenia

Remote’s guide to employing in Armenia.

Capital city
Yerevan
Currency
Dram (AMD)
Population size
2,963,243
Language spoken
Armenian
01

Facts & stats

Armenia is one of the world’s oldest countries. Its capital, Yerevan, was established before Rome, and the country is home to several ancient historical sites, including some of the world’s oldest churches. A former member of the Soviet Union, some of Armenia’s primary industries include manufacturing, mining, textiles, and agriculture. Armenians are avid chess players, and Armenia is the only country in which chess is a mandatory part of public education.

Armenia Map
  • Capital city
    Yerevan
  • Currency
    Dram (AMD)
  • Language spoken
    Armenian
  • Population size
    2,963,243
  • Ease of doing business
    Very easy
  • Cost of living index
    31.68
  • Payroll frequency
    Monthly
  • VAT - standard rate
    20%
  • GDP - real growth rate
    7.6%
02

Grow your team in Armenia with Remote

To employ in Armenia, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Armenia can get complicated, especially without established local relationships.

With Remote’s global employment solution, you can employ workers in Armenia quickly, easily, and in full compliance with all applicable labor laws. Remote owns our own local legal entity in Armenia. We take on the responsibility and legal risks of international employment so you can focus on growing your business.

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Armenia risks illustration

Risks of misclassification

Armenia, like many other countries, treats self-employed contractors and full-time employees differently. Misclassification of contractors in Armenia may lead to fines and penalties for the offending company.

03

Employing in Armenia

Armenia’s labor laws provide considerable protections for workers in the country. Employers over a certain size may not pay workers in cash, and workweeks typically cannot exceed 48 hours per week, including lunch and breaks. Employees are generally protected against abrupt termination (Armenia is not an “at-will” employment country), and there are special rules that apply for layoffs of multiple people. Companies should consult an experienced partner when drafting employment contracts.

To employ workers in Armenia, contact Remote to learn more about your options.

Public holidays

Date Holiday Name Extra information
New Year's Day
Christmas Eve
Christmas Day
National Army Day
Women's Day
Easter Monday
Genocide Memorial Day
Labor Day
Victory Day
Republic Day
Constitution Day
Independence Day
New Year’s Eve
Minimum
Wage

In Armenia, the minimum wage is 68,000 AMD per month.

Payroll
Cycle
For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
Onboarding
Time
We can help you get a new employee started in Armenia fast. The minimum onboarding time we need is only 7 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

04

Competitive benefits package in Armenia

Besides providing your employees with all statutory benefits in Armenia, Remote can advise on and arrange for custom benefits and perks for your employees upon request.

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05

Taxes in Armenia

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Armenia.

Armenia does not charge payroll taxes to employers. Instead, social contributions are rolled into employee payroll taxes. Employers are required to withhold employees’ social contributions.
  • Employer

    • 0% - Total Cost of Employment
  • Employee payroll taxes

    • 3.5% - Pension (For earnings less than 500,000 AMD/month)
    • 10% - Pension (For earnings more than 500,000 AMD/month)
  • Employee income taxes

    • 22% (Flat rate for 2021)
  • Employee stamp duty

    • AMD 1000 - is deducted from the employee each month for Armenia’s Insurance Foundation for Servicemen
06

Types of leave

Statutory
leave

Paid Time Off is 20 days for all employees with a 5 day work week and 24 days for employees with a 6 day work week. Extended annual leave of up to 25 working days is granted to certain categories of employees whose work involves great nervous, emotional, intellectual strain or professional risk. Every employee is also entitled to 12 paid public holidays every year.

Pregnancy and
maternity leave

Mothers in Armenia receive a total of 140 days of maternity leave in most cases. The employee may begin to take maternity leave 70 days before the due date, then for another 70 days after birth. Births with complications extend post-birth leave to 85 days, for a total of 155 days. In cases of multiple births, total maternity leave extends to 180 days. Employees receive 100% of their average wages while on leave, with an upper limit of five times minimum wage.

Partner and
paternity leave

Fathers in Armenia are entitled to five days of paid leave at 100% average salary. All five days must be used within 30 days of birth.

Armenia currently does not recognize same-sex partnerships. Therefore, parents in same-sex relationships are not entitled to leave. Companies may elect to provide their own paid parental leave.

Paternal
leave

New parents in Armenia may be entitled to unpaid childcare leave until the child reaches the age of one

Sick
leave

Employers provide paid sick leave from the 2nd to the 5th day. After the 6th day they may be covered by social insurance.

Other
leave

Employees in Armenia who take sick leave because of a work-related injury or illness must be paid their regular benefits until they are fit to return to work. For illnesses not related to work, employees who are sick for fewer than 120 consecutive days (or 140 days in the last year) are entitled to return to work at their original position and pay, provided they do not exceed those limits.

07

Employment
termination

Termination process

Employees in Armenia may only be terminated for one of the reasons outlined in Armenia’s labor laws. Some of these reasons include loss of confidence in the employee’s ability to perform the duties of the role, unexcused absences, and refusal to cooperate with a medical exam. Reasoning for termination should be provided to the employee in writing.

Notice period

Notice periods in Armenia increase depending on the tenure of the employee. These periods may vary greatly depending on individual circumstances. Here are a few of the most common situations:

  • Employees on probationary periods are entitled to three days of notice.
  • Employees leaving by mutual agreement are entitled to seven days of notice.
  • Employees being terminated because of a change in the essential terms of the employment are entitled to 14-60 days of notice, depending on tenure.
  • Employees and employers ending a fixed-term employment agreement must provide 10 days of notice to the other party.

There are many other circumstances in which notice periods may change. If you employ someone in Armenia through Remote and have questions about terminations, our legal experts can provide information specific to your situation.

Severance pay

In Armenia, severance pay amounts vary depending on the tenure of the employee and the reason for termination. For layoffs and employees made redundant, one month’s salary is the norm. In other situations, two weeks’ salary is the norm, unless an employment agreement stipulates otherwise.

Probation periods

Armenian law limits probationary periods to three months in most circumstances. Certain groups and industries may have allowances for longer periods. To terminate an employee during a probationary period, the company must offer a minimum of three days’ notice.

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