Armenia

Armenia PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in Armenia to companies willing to enter the Armenian market or hire local/expat employees in this country.

Traditional approach requires establishing a filiation in Armenia.  However our solution allows you to start the operations in Armenia within days hence save time and money.  WeHG would hire candidates on your behalf while you sustain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

Armenia fast facts

Population, million: 2,963,243
Land area: 29,743 km²
Capital: Yerevan
Local currency: Armenian dram (AMD)

GDP per capita:$ 4050.00
GDP in currency:$ 9.80 billion

Employment relationships in Armenia are regulated by the Constitution of the Republic of Armenia, the Labour Code of the Republic of Armenia, various laws (e.g., the Law on the Minimum Monthly Salary, the Law on Trade Unions) and other legal acts (such as decisions by the government or by ministers).

Hiring, Negotiating and Doing Business in Armenia

Necessity of written employment contract

It is legally required to put a strong employment contract in place in Armenia, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Armenia should always state the salary and any compensation amounts in dram rather than a foreign currency.

Employment contracts must also meet Labour Code requirements and include the:

  • Name and surname of the worker (and optionally, his or her father’s name);
  • Name of the company or the name and surname of the physical entity (ie, the employer and, optionally, his or her father’s name);
  • Structural sub-division (where available);
  • Date on which employment starts;
  • Position and/or official duties;
  • Basic salary and method of payment;
  • Bonuses, additional payments or premiums granted to employees;
  • Validity period of the employment contract (if necessary);
  • Duration of the probation period on which the parties have agreed; and
  • Work time duration, where incomplete working time is set.
  • Date and place where contract was concluded

This information is provided as generally accepted information and is not intended as advisory services.

Armenia Employment Contract

Types of employment agreements

According to Article 94 of the LC, contracts of employment are concluded:

  • either for an indefinite period of time (in the absence of any provisions limiting its validity), or
  • for a fixed term (the contract specifies the duration of its validity).

Armenia working hours

Armenians work an eight hour day and should not exceed 40 hours per week.

Overtime

Overtime is allowed, but at a maximum of four hours per day or eight hours per week. Employees generally receive  at least 150% of their regular hourly rate for each overtime hour.

Vacation leave in Armenia

Armenian workers are generally entitled to 20 days of annual paid vacation.

Armenia Maternity Leave

Female employees are allowed up to 140 days of paid maternity leave. Leave extends from 70 days before the birth to 70 days after the expected date of childbirth, or 155 days if there are complications and 180 days for multiple births.

Sick Leave in Armenia

Employees on sick leave due to a work related injury or sickness can return to their prior job when healthy.

If the sickness or injury is not work related, the employee is guaranteed his/her job if his/her absence is no more than 120 successive days or 140 total days within the past 12 months.

Employees are entitled to receive full benefits while on sick leave.

Armenian Severance Laws

Notice is required prior to dismissal for redundancy. For employees with:

  1. One year service: 5 days are required
  2. Up to 5 years’ service: 6 days notice
  3. Up to 10 years’ service: 7 days notice

Workers terminated due to redundancy are also entitled to severance pay of one month.

The employee must be given at least two months notice in the event of

  • Liquidation of company
  • Changes in production volumes
  • Economic or technological changes
  • Changes in working conditions

If the employee has a long-term inability to work, is no longer suitable for the position, or he/she has a long-term inability to work, he/she must be given notice before termination.

Armenia Tax

Individual social security accounts are mandatory for workers who were born after January 1, 1974. The employee’s contributions are as follows:

5% of monthly earnings up to 500,000 drams a month, plus up to 1.5% of the account balance for administrative fees.

For earnings exceeding 500,000 drams a month, the insured’s contribution is 10% of monthly earnings minus a government flat-rate contribution of 25,000 drams, plus up to 1.5% of the account balance for administrative fees.

Employers must also contribute to social security at a flat rate of 7,000 drams a month

Plus 15% of the employee’s monthly income from 20,000 drams to 100,000 drams

Plus 5% of income greater than 100,000 drams.

The employer’s contributions also finance sickness, maternity, work injury, and unemployment benefits.

Health Insurance Benefits in Armenia

Government health providers offer medical services directly to patients. Benefits include general and specialist care, hospitalization, laboratory services, dental care, maternity care, and transportation.

Additional Benefits in Armenia

Employee benefits in Armenia include pension, paid time off and employment insurance which includes personal accident, healthcare and travel insurance. There is no mandatory personal employment insurance in the country, only optional. Employee perks are not common in the country.

Armenia Holidays

Public holidays

    • New Year’s Day  
    • Armenian Orthodox Christmas 
    • International Women’s Day 
    • Genocide Remembrance Day 
    • Labour Day 
    • Victory and Peace Day 
    • Republic Day 
    • Constitution Day 
    • Independence Day 
    • New Year’s Eve 

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ Armenia

  • Working hours in Armenia

    Armenians work an eight hour day and should not exceed 40 hours per week.

  • What are the main holidays in Armenia?

    Public holidays

    • New Year’s Day  
    • Armenian Orthodox Christmas 
    • International Women’s Day 
    • Genocide Remembrance Day 
    • Labour Day 
    • Victory and Peace Day 
    • Republic Day 
    • Constitution Day 
    • Independence Day 
    • New Year’s Eve 
  • What are payroll taxes in Armenia?

    Individual social security accounts are mandatory for workers who were born after January 1, 1974. The employee’s contributions are as follows:

    5% of monthly earnings up to 500,000 drams a month, plus up to 1.5% of the account balance for administrative fees.

    For earnings exceeding 500,000 drams a month, the insured’s contribution is 10% of monthly earnings minus a government flat-rate contribution of 25,000 drams, plus up to 1.5% of the account balance for administrative fees.

    Employers must also contribute to social security at a flat rate of 7,000 drams a month

    Plus 15% of the employee’s monthly income from 20,000 drams to 100,000 drams

    Plus 5% of income greater than 100,000 drams.

    The employer’s contributions also finance sickness, maternity, work injury, and unemployment benefits.

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