Armenia has a strong chess tradition and has produced several world-class chess players.
Payroll and Benefits Guide - Armenia
Fun Facts
Armenia is often referred to as the “Apricot Country” because of its rich cultivation of apricot orchards.
Yerevan, the capital and largest city of Armenia, is one of the oldest continuously inhabited cities in the world.
The Armenian language has its own unique alphabet.
Lake Sevan is one of the largest freshwater high-altitude lakes in the world.
Armenia is renowned for its intricately carved stone crosses known as khachkars.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Pension Fund | 5.00% – 10.00% |
Employer Payroll Tax
| Contribution Type | Rate |
| Employement Cost | 0.00% |
Payroll
Payroll Cycle
In Armenia, the payroll cycle typically follows a monthly schedule, with wages being paid on the 15th day of the subsequent month.
13th Salary
There is no mandatory 13th salary in Armenia.
Work Hours and Week
The standard working hours in Armenia consist of 40 hours per week, with a daily work period of eight hours.
Overtime
For each hour of overtime worked, employees in Armenia are entitled to receive 150% of their standard hourly rate. If an employee works during night hours, they should receive 130% of the standard hourly rate for each hour of night work. However, it’s important to note that managers are exempt from overtime limitations and are not required to receive additional salary for overtime work.
Leave
Paid Time Off
The minimum entitlement of paid annual leave in Armenia is determined by the number of working days in a week. If an employee works five days a week, they are entitled to a minimum of 20 working days of annual leave. On the other hand, if an employee works six days a week, they receive a minimum of 24 working days of annual leave.
Public Holidays
Armenia has a total of 16 public holidays throughout the year. However, if a public holiday falls on a weekend, it is typically not carried over or compensated for on another day.
Sick Days
In Armenia, employees are entitled to receive paid sick leave starting from the first day of sickness up to the fifth day. During this period, the employee is generally compensated at 80% of their average salary, with the employer being responsible for making the payments.
Maternity Leave
An employee is entitled to a minimum of 140 days of maternity leave. This period is divided into 70 days during pregnancy and an additional 70 days following the birth of the child.
Paternity Leave
Fathers in Armenia are entitled to 5 days of paid leave to be taken within the first 30 days following the birth of their child. This allows fathers to spend time with their newborn and support their family during the early stages of parenthood.
Parental Leave
Within the first month of a child’s birth in Armenia, it is possible for parents to request up to 5 days of paid parental leave. This allows parents to take time off from work to care for and bond with their newborn child.
Termination
Termination Process
In Armenia, employers are required to have a valid reason to terminate an employee’s contract and are obligated to provide notice prior to termination. The length of the notice period is typically tied to the duration of the employee’s tenure with the company.
Notice Period
An employee must give 30 days’ notice to resign unless a collective agreement requires a longer period.
Severance Pay
The reason for termination determines the amount of the severance pay. The severance pay will be equal to the employee’s average monthly salary.
Probation Period
Probation Period
The Probation period in Armenia is usually three months.
Immigration
In Armenia, individuals who intend to work in the country must obtain a work permit sponsored by their employer. This work permit is necessary to legally engage in employment activities in Armenia. Generally, holding an Armenian visa alone does not grant the right to work in the country unless accompanied by a valid work permit. However, certain categories of individuals, such as highly skilled foreign specialists, business owners, executives, and other qualified workers, may be exempt from the requirement to obtain a work permit.
VAT
The commonly used VAT rate in Armenia is 20%.