Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Discover the comprehensive range of employer obligations and employee benefits in Armenia through the services of an Employer of Record. From managing the payroll cycle and ensuring compliance with employer and employee contributions, to navigating minimum wage regulations and handling the hiring process for employees, contractors, and expats, an Employer of Record in Armenia can assist with background checks, employment contracts, onboarding procedures, social security coverage, healthcare and insurance provisions, leave policies, public holidays, work permits and visas, probation periods, notice periods, termination and severance regulations, as well as personal income tax requirements.
| Overview | |
| Continent | Asia |
| Country | Armenia |
| Capital | Yerevan |
| Time zone | UTC+04:00 |
| Total Time zones | 1 |
| Working hours per week | 45 |
| Working week | Monday–Friday |
| Typical hours worked | 9 |
| Fiscal Year | 1 January- 31 December |
| Personal Tax filing deadline | For monthly income tax returns: 20th day of the month following the reporting period. |
| Currency | Armenian Dram (AMD) |
| Date Format | dd/mm/yyyy |
Employer Payroll Contributions in Armenia
| Employers | % of Gross Salary |
| Total Employer Cost | 0% |
Employee Payroll Contributions in Armenia
| Employees | % of Gross Salary |
| Pension fund monthly gross income < 500,000 AMD | 4.5% |
| Pension fund monthly gross income > 500,000 AMD | 10% of income minus 27,500 AMD |
| Total Employee Cost | 4.5% or 10.00% |
Personal Income Tax in Armenia
| Income Tax | |
| Flat Rate | 21% |
| Military Taxes: | |
| up to 100,000 AMD | 1500 AMD |
| 100,000-200,000 AMD | 3000 AMD |
| 200,000-500,000 AMD | 5500 AMD |
| 500,000-1,000,000 AMD | 8500 AMD |
| over 1,000,000 AMD | 15000 AMD |
Payroll Cycle in Armenia
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | NA |
Employee Benefits in Armenia
Employee benefits in Armenia encompass various components aimed at providing financial security, healthcare coverage, and paid time off. These benefits include pension programs, paid maternity and paternity leave, as well as optional employment insurance covering personal accident, medical, and travel expenses. While there is no mandatory personal employment insurance in Armenia, many employers offer medical insurance to their employees. Let's delve into the details of each benefit:
- Pension: Armenia implemented a mandatory funded pension system in 2014, comprising three pillars: the state pension, mandatory funded pension, and voluntary funded pension. The state pension ensures a minimum income for pensioners without the required eligible years of service, while the employment pension is based on the number of seniority years. Participants can choose between two asset managers for their pension assets.
- Paid Time Off: Maternity and paternity benefits are available to working mothers, providing up to 140 days of leave before and after childbirth. In cases of complicated labor or multiple child deliveries, the duration of leave may extend up to 155 or 180 days, respectively. Parents who have adopted a child are also entitled to leave until the child reaches 70 days old.
- Employment Insurance: While personal employment insurance is not mandatory, employers often offer medical insurance to their employees. Optional coverage includes personal accident insurance, covering bodily injury, medical expenses, disability, and death. Additionally, medical insurance covers various healthcare services such as annual treatment, pregnancy and birth care, cardiology, chronic diseases, dentistry, and ophthalmology. Travel insurance is available for medical expenses, legal advice, amateur sport injuries, loss or damage of baggage, public liability, and repatriation.
It's important to note that employee perks are not common in Armenia, and the availability of benefits may vary depending on the employer.