Guide to employment, payroll and benefits in

Armenia

Rivermate offers complete payroll, benefits and compliance services for

Armenia

01. Overview

Last updated: 

August 19, 2021

Currency
Armenian Dram
Capital
Yerevan
Ease of doing business
74.5
Language
Armenian
Population
2963243
GDP growth
7.50%

02. Grow your team in

Armenia

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Armenia

, particularly if you don't have established local relationships. You can hire employees in

Armenia

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Armenia, formally the Republic of Armenia, is a landlocked country in Western Asia, situated in the Armenian Highlands. It is bordered on the west by Turkey, on the north by Georgia, on the east by Azerbaijan and the Azerbaijani exclave of Nakhchivan, and on the south by Iran and the Azerbaijani exclave of Nakhchivan.Armenia is a unitary, multi-party, democratic nation-state with an ancient cultural heritage. Urartu, the first Armenian state, was established in 860 BC and was replaced by the Satrapy of Armenia in the 6th century BC. The Kingdom of Armenia reached its pinnacle under Tigranes the Great in the 1st century BC, and in the late 3rd or early 4th century AD, it became the world's first state to accept Christianity as its official religion. The year 301 marks the formal acceptance of Christianity by the state. Around the early fifth century, the Byzantine and Sasanian Empires split the ancient Armenian kingdom. The Bagratid Kingdom of Armenia was restored in the 9th century under the Bagratuni dynasty. The kingdom collapsed in 1045 as a result of wars against the Byzantines, and Armenia was soon invaded by the Seljuk Turks. Between the 11th and 14th centuries, Cilician Armenia was an Armenian principality and later a kingdom on the Mediterranean Sea's coast. Between the 16th and 19th centuries, the Ottoman and Persian empires ruled over the common Armenian homeland of Eastern and Western Armenia, which was continuously ruled by each of them over the centuries. Eastern Armenia had been annexed by the Russian Empire by the nineteenth century, although the majority of the traditional Armenian homeland remained under Ottoman rule. The Armenian Genocide occurred during World War I, when 1.5 million Armenians living in their ancestral lands in the Ottoman Empire were systematically exterminated. Following the Russian Revolution in 1918, when the Russian Empire ceased to exist, all non-Russian countries proclaimed their independence, resulting in the creation of the First Republic of Armenia. By 1920, the state had been absorbed into the Transcaucasian Socialist Federative Soviet Republic, and by 1922, it had entered the Soviet Union as a founding member. The Transcaucasian state was abolished in 1936, transforming its constituent states into full Union republics, including the Armenian Soviet Socialist Republic. During the breakup of the Soviet Union in 1991, the modern Republic of Armenia gained independence. Armenia is a developing nation with a Human Development Index of 81. Its economy is focused primarily on manufacturing and mineral extraction. Despite its geographical location in the South Caucasus, Armenia is regarded as a geopolitically European nation.

04. Public holidays

05. Types of leave

Paid time off

For a five-day work week, the minimum annual leave is 20 days, while for a six-day work week, it is 24 days.

Employees in demanding or high-risk workplace environments are given extended paid leave of up to 25 working days for a five-day working week, or 30 working days for a six-day working week (in rare situations, 35 working days for a five-day working week, or 42 working days for a six-day working week).

Public holidays

There are twenty public holidays in Armenia. Fourteen of these holidays are non-working holidays.

Sick days

Employees are entitled to compensated sick leave from the second to the fifth day. Employees are protected by unemployment security until the sixth year.

Maternity leave

Employees who are pregnant are given 140 days (70 days of pregnancy, 70 days of childbirth), 155 days (70 days of pregnancy, 85 days of childbirth) if the delivery is difficult, and 180 days (70 days of pregnancy, 110 days) if they have more than one child at the same time. Unused maternity leave days are extended to the days of maternity leave in the event of a premature birth.

The regular value is equal to 100% of the insured's gross monthly earnings measured by 30.4 (regardless of the number of years of covered employment) (average number of days in a month).

Paternity leave

Fathers in Armenia can take five days of paid leave within the first thirty days after the birth of his child.

Parental leave

Parents in Armenia are entitled to five days of paid leave within the first month of the child's birth.

Other leave

06. Employment termination

Termination process

Employers must have valid reasons and provide notice before terminating an employee.

Notice period

The notice period is determined by the length of employment. If an employee is recruited for less than a year, they are entitled to at least fourteen days' notice. The employee will be given 35 days' notice after one to five years of employment. After five to ten years of service, an employee will receive notice in 42 days. Finally, the employee will given a 60-day notice after ten to fifteen years of continuous service.

Severance pay

Severance pay is calculated on the basis of the reason for termination. If the organization is liquidated, the number of employees is reduced, or the employee is rehired in a previous job, the severance pay will equal the employee's average monthly salary.


If the employee is terminated for non-compliance with the position held, long-term disability, old age, significant changes in working conditions, or employee is called up for compulsory military service, the severance pay will also be determined by the employee's employment length. If the employee has worked for the company for less than a year, they will receive ten times their average daily salary. If the employee has worked for the company for between one and five years, they will receive twenty-five times their average daily wage. If the employee has worked for the company for five to ten years, they will receive 30 times their average daily wage. If the employee's tenure is between ten and fifteen years, he or she receives 35 times their average daily wage. Severance pay is 44 times the employee's average daily salary if the employee has worked for the company for 15 years or more.

Probation period

Probationary periods are typically three months in length and are stipulated in the employment contract. Before the probationary period expires, the employment contract may be terminated by notifying the employer at least three days in advance.

07. Working hours

General

Armenians should work an eight-hour day and not more than forty hours per week.

Overtime

Overtime is permissible, but no more than four hours per day, eight hours per week, or 120 hours per year.


Each hour of overtime work is compensated at 150 percent of the employee's regular hourly rate. Each hour of night work pays employees 130 percent of their normal hourly rate. On a public holiday, overtime is paid at double the standard rate or compensated with time off.

08. Minimum wage

General

Employees are entitled to a minimum monthly wage that excludes bonuses, additional payments, and incentives. Divide the monthly salary by the total number of hours worked to arrive at the minimum hourly rate.


Those who work in hazardous environments earn a premium over their average salary. Bonuses are prevalent.


Currently, the minimum hourly wage is 406 Drams (1 USD) and the monthly minimum wage is 68,000 Drams (140.24).

09. Employee benefits

General

Medical services are provided directly to patients by government health professionals. General and specialty care, hospitalization, laboratory services, dental care, maternity care, and transportation are all included in the benefits package.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Armenia

to hire a team takes time, money, and effort. The labor law in

Armenia

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Armenia

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Armenia

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Armenia

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.