Employment Law

Employment Contract in Armenia

Employers in Armenia are required by law to provide each employee with a complete written employment contract. The employment contract should include any details of the employment, such as wages, expected hours of work, and any other relevant information that complies with national labor laws. The contract should be written in Armenian and in the local currency Armenian drams.

Fixed Term

Indefinite

Armenia Working Hours

The standard working week in Armenia is 40 hours, with 5 8-hour days. Work outside this range should be compensated as overtime, usually at least 150% of regular wages. Overtime shall not exceed four hours per day and/or eight hours per week.

Holiday Policy

Armenia Holidays

In Armenia, employees receive at least 20 days of paid vacation per year.

Armenia Sick Leave

For non-work-related absences due to illness, employers in Armenia are required to retain an employee's position for a maximum of 120 consecutive days (or a total of 140 days in a year) and the employee receives full wages and benefits during the absence.

Parental Leave in Armenia

For a single pregnancy without serious complications, Armenian female employees are entitled to 140 days of paid maternity leave, including 70 days before and 70 days after delivery. Compensation during this period is limited to 5 times the minimum wage.

Termination and Disbandment of Armenia

In most cases, the notice period for dismissal of employees in Armenia varies between 5 and 7 days depending on the years of service. Retrenched employees also need to pay one month's salary as severance pay.

Armenia's probation period is three months.

Taxes in Armenia

Armenian employees born in 1974 or later must pay social security contributions. This amount ranges from 5% to 10% of monthly income, depending on income level, and the management fee is 1.5% of the balance.

Employers are required to pay social security contributions to employees at a rate of 7,000 drams per month, 15% of wages for incomes between 20,000 and 100,000 drams, and 5% of wages for incomes above 100,000 drams.

Armenia’s flat personal income tax rate is 23%, which will gradually decrease to 20% by 2023.

Armenia’s corporate tax is 18%.

Health Insurance in Armenia

Healthcare in Armenia is generally state-funded, so employers are not required to provide private health insurance.

Salary and Benefits

Armenia’s Compensation Law

The minimum wage for a full-time worker in Armenia is 68,000 drams per month.

Welfare Administration in Armenia

Setting up an employee benefits system for employees in Armenia can be difficult. Complex regulations and organizations can require significant time, effort and investment from employers.

Remoly can help you avoid this complex part of the Armenia expansion process, saving you time and money and streamlining the entire process. Our Armenia PEO team will advise and outsource the setup and management of your benefits system, freeing you up to focus on other important elements of your expansion.