When you make the final decision to hire global tech talent in emerging markets like Armenia, it is important to have an in-depth understanding of the work culture in that country and the employment laws that will govern your remote employees and your payroll. For U.S.-based tech companies that hire in Armenia, this means knowing and understanding the employee benefits and local labor codes in Armenia.
You may think that that is an almost impossible task when you already need to understand labor laws here in the United States — but with a trusted employer of record on your side, you have a partner that can help you manage these aspects of hiring remote employees around the world. Truss provides U.S.-based tech companies with an end-to-end global hiring platform and employer of record services in Armenia to help you grow your team.
READ MORE: 2026 Tech Salary Guide for Armenia
How an EOR Manages Labor Code Compliance and Benefits in Armenia
When tech companies partner with an employer of record, the responsibility for compliance with local employment laws falls on the employer of record provider — not the company. This protects you as the employer from potential compliance fines and penalties, by ensuring that you are compliant with the local labor laws that govern employee contracts, benefits, payroll, and more. This allows you to put more focus on achieving your business goals and eliminates the costs of establishing a legal entity in Armenia. With an employee of record in Armenia — like Truss — that has years of experience in the country and understands the labor laws, your company is protected with zero risk of compliance fines.
Local labor laws in Armenia are governed under the Republic of Armenia Labour Code that cover employee leave, public holidays, sick leave, maternity leave, working hours, overtime pay, pensions, taxes, minimum wages, and more.
Here is a better look at employee benefits and labor laws in Armenia:
Employee Working Hours, Pay and Overtime in Armenia
The first thing that U.S.-based tech companies need to understand when hiring remote employees in Armenia is the minimum wage. Armenia has a legal minimum wage of 75,000 Armenian Dram per month — which is equal to $207.41 per month. The standard work week for Armenian employees is 40 hours per week with a standard 8-hour work day. Overtime hours in Armenia cannot exceed 12 hours per day, 48 hours per week, and 120 hours of overtime in a calendar year. The pay for overtime hours in Armenia is 1.5x the regular employee pay.
Employee Leave and PTO in Armenia
Protecting employee leave and PTO is an important part of the labor code in Armenia, and an employer of record ensures that these labor laws are followed to the T. Employees in Armenia receive a minimum of 20 days of paid annual leave each year under the Republic of Armenia Labour Code. Armenian employees receive 14 non-working public holidays in addition to regular paid leave. When employees are sick in Armenia, the employer pays for the initial five days of the illness at 80% of the daily pay, and then employees are paid by the state social fund. New mothers in Armenia will enjoy 140 days of maternity leave at 100% of their salary paid by the social programs in the country. Paternity leave for brand-new fathers is five days, and families can take up to 36 months of unpaid leave.
Public Holidays in Armenia
- December 31: New Year’s Eve
- January 1: New Year’s Day
- January 2: New Year Holiday
- January 5: Christmas Eve
- January 6: Armenian Christmas and Epiphany
- January 28: National Army Day
- March 8: International Women’s Day
- April 21: Easter Monday
- April 24: Armenian Genocide Remembrance Day
- May 1: International Workers’ Day (Labor Day)
- May 9: Victory and Peace Day
- May 28: Republic Day
- July 5: Constitution Day
- September 21: Independence Day
Employee Pensions and Taxes in Armenia
When tech companies hire in Armenia, they need to have an understanding of the tax laws and employee pensions in the country. When looking at payroll in Armenia, there is no mandatory employer social security or pension contribution, but employers must still be able to handle other aspects of payroll — which can be overseen by your employer of record. The employee contribution to their pension is 5% of their pay and up to 500,000 AMD per month. Employers and EOR providers must withhold a flat income tax of 20% from employee salaries. To ensure that all salaries and tax contributions are compliant with the Republic of Armenia Labour Code, the employment contracts must be submitted to and registered with the State Revenue Committee by your employer of record.
READ MORE: Tax Incentives for Tech Companies in Armenia
Protect Employee Benefits in Armenia with Truss as Your EOR
It can be a challenge to navigate local labor codes and employee benefits in Armenia, and it is essential for U.S.-based tech companies that want to find, recruit, and hire elite tech talent in the country. The Armenian labor code provides important protections for employees — including paid annual leave, sick pay, maternity leave, working hours, and overtime pay — and managing these local employment laws from the United States can create a risk of non-compliance without the right infrastructure in place for your company.
Truss may be able to provide a solution as your employer of record in Armenia. Working with an employer of record, like Truss, eliminates legal challenges by managing local employment contracts, overseeing employee benefits, managing tax withholdings, and administering payroll. By working with Truss, you can help ensure that your remote team in Armenia receives competitive benefits and payroll protections that are compliant with the labor code without the need to establish a local entity.
