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

Labor relations in Armenia are regulated by the Constitution of the Republic of Armenia, the Labor Code of the Republic of Armenia, various laws (for example, the Law on Minimum Monthly Wages, the Law on Trade Unions) and other legal acts (such as decisions of the government or ministers).

Hiring, Negotiating and Doing Business in Armenia

Necessity of written employment contract

Employment agreement should be in writing form and in the local language.

Armenia Employment Contract

Types of employment agreements

An employment contract can be fixed or open-ended.

Armenia working hours

40 hours per week.

Overtime

For each overtime hour, the employee must receive at least 150% of the normal hourly rate.

Vacation leave in Armenia

20 days of annual paid vacation.

Armenia Maternity Leave

Female workers have 140 days of maternity leave. In case of complications – 155 days, and in case of multiple births – 180.

Sick Leave in Armenia

Employees on sick leave due to a work injury or illness can return to their previous job in a healthy state.
If the illness or injury is not work  related, the employee is guaranteed his / her work if his / her absence is no more than 120 consecutive days or 140 days in total during the last 12 months.

Armenian Severance Laws

Notice period:
• 1 year: 5 days
• More then 5 years: 6 days
• More then 10 years: 7 days

The worker must be notified at least two months in advance in case
• Liquidation of company
• Changes in production volumes
• Economic or technological change
• Changes in working conditions

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 AMD a month, plus up to 1.5% of the account balance for administrative fee.

If the amount is more than 500,000 AMD per month, the insured’s contribution is 10% of the monthly income minus the state contribution of 25,000 AMD plus up to 1.5% of the account balance for paying administrative fees.

Hirers must also contribute to social security at a flat rate of 7,000 AMD a month.

Plus 15% of the worker’s monthly income from 20,000 AMD to 100,000 AMD.

Plus 5% of income more than 100,000 AMD.

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

1. • 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.