Payroll and Benefits Guide - Armenia

Armenia
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Currency

Armenian Dram
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Capital

Yerevan
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Employer Taxes

0.00%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Armenia has a strong chess tradition and has produced several world-class chess players.

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.

Armenia

Contributions

Employee Payroll Tax

Contribution TypeRate
Pension Fund5.00% – 10.00%

Employer Payroll Tax

Contribution TypeRate
Employement Cost0.00%

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.
Armenia

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%.