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Hire in ARMENIA

Employer of Record Services (EOR)in Armenia

Armenia, brimming with talent and a burgeoning tech scene, beckons businesses seeking expansion. However, navigating the local labor laws can be challenging. Truss, as your Employer of Record (EOR), simplifies hiring in Armenia. We handle employment complexities—from onboarding and payroll to benefits and compliance—ensuring your business adheres to local regulations. This reduces risks associated with international hiring and empowers you to focus on harnessing Armenian expertise to accelerate your growth.

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Quick Facts About Armenia

1
US Dollar
=
387.73
Armenian Dram (AMD)
*revised May 22, 2024
A computer with a calculator and a coin
ADDITIONAL INFORMATION

Payroll + Taxation

PAYROLL CYCLE

In Armenia, payroll typically occurs monthly with payment on the last working day of the month.

Thirteenth-month payments are not mandatory in Armenia. Employers can pay bonuses at their discretion.

INCOME TAX

Employee Income Tax in Armenia is a flat rate of 20% for residents.

EMPLOYER COST

The employer cost is 0.0% on top of the employee salary in Armenia.

ADDITIONAL INFORMATION

Minimum Wage + Working Hours

MINIMUM WAGE

The minimum wage in Armenia is 75,000 AMD per month for a 40-hour work week.

WORKING HOURS + OVERTIME

A typical work week in Armenia consists of 40 hours worked over five or six days. Minors and employees in dangerous sectors commonly have reduced working hours.

When an employee is requested to work on holidays or works more than the standard 40 hours per week, there are maximum limits on the number of overtime hours allowed. These limits are regulated by employment contracts and/or collective agreements.

Overtime is generally paid at a rate of 150% of the employee’s regular hourly rate for work on regular days and 200% for work on rest days or holidays. Night work is compensated at 130%

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leave

Paid Time Off

After completing six months of continuous employment, employees in Armenia are entitled to a minimum of 20 working days of paid annual leave. Depending on the nature of their work or specific circumstances (e.g., hazardous jobs, disabilities), they may be entitled to additional paid time off.

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ARMENIAN NATIONAL HOLIDAYS 2024
  • January 1-6 New Year’s Day
  • January 6-7 Armenian Orthodox Christmas
  • January 28 Army Day
  • March 8 Int’l Women’s Day
  • April 1 Easter Monday
  • April 24 Genocide Remembrance Day
  • May 1 Labor Day
  • May 9 Victory and Peace Day
  • May 28 First Republic Day
  • July 5 Constitution Day
  • September 21 Independence Day
  • December 31 New Year’s Eve
SICK LEAVE

Employees are entitled to paid sick leave upon providing a medical certificate for workdays missed due to illness. Sick leave compensation is typically 80% of the employee’s average earnings, paid by the Social Security Fund. However, in certain cases (e.g., work-related injuries or for specific professions), compensation may be higher.

PATERNITY LEAVE

Fathers are entitled to 5 calendar days of paid paternity leave, taken within 30 days of the child’s birth.

OTHER LEAVE

Additional leave entitlements exist for events such as marriage, bereavement, or study leave. The specific terms and conditions for these types of leave can vary and are often outlined in employment contracts or collective agreements.

MATERNITY LEAVE

Employees are entitled to 140 days of paid maternity leave, usually starting 70 days before the expected due date and continuing for 70 days after childbirth. This may be extended in cases of multiple births or complications. During maternity leave, employees receive social security benefits covering a portion of their salary.

NOTICE + PROCESS

Termination

TERMINATION PROCESS

The termination process in Armenia is determined by the employment contract and collective agreement, if applicable. The specific requirements may vary depending on the type of contract (fixed-term or indefinite) and the reason for termination.

NOTICE PERIOD

Notice periods can vary depending on the circumstances and are outlined in the employment contract. Generally, for termination due to redundancy or a unilateral decision by the employer, the notice period is one month for employees with less than five years of service and two months for those with five or more years.

In cases of gross misconduct or serious violations, the employer may terminate the contract without notice or with a shorter notice period as defined by law or contract.

SEVERANCE PAY

Severance pay is not always mandatory but can be required in certain circumstances, such as termination due to redundancy or liquidation of the company. The amount of severance pay may depend on the employee’s length of service and salary.

PROBATION PERIOD

Employment contracts may include a probationary period, typically lasting up to three months. During this period, either party can terminate the contract with shorter notice than would be required otherwise.

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Armenia, a rising tech hub in the Caucasus region, boasts a skilled and educated workforce that attracts international businesses. However, expanding into Armenia can be complex due to the country’s specific legal requirements and distinct cultural practices. This is where partnering with an Employer of Record (EOR) like Truss becomes a game-changer. With our expertise…