Employee Benefits in Armenia

Who Is Entitled to Employee Benefits In Armenia

In Armenia, employee benefits are governed by the Labour Code and social security legislation. All employees working under a formal employment contract are entitled to statutory benefits, including paid annual leave, sick leave, maternity protections and social security coverage. These benefits apply across industries and employer sizes, ensuring that workers receive essential protections and income security.

Part-time, temporary and fixed-term employees are also entitled to many benefits, although eligibility requirements may vary depending on service duration or contract terms. As long as an employment relationship exists, employers must follow Armenia’s statutory labour standards, including mandatory contributions and minimum leave entitlements.

Overview of Employee Benefits In Armenia

Employee benefits in Armenia combine statutory protections with supplemental perks that employers offer to stay competitive. Armenia’s social protection system covers pensions, unemployment benefits and family allowances, while employers must ensure paid leave and workplace safety. In the country’s workplace culture, benefits play an important role in offering stability and fostering trust between employers and employees.

Mandatory Employee Benefits In Armenia

Mandatory benefits are legally required and form the core of any employee benefits package in Armenia. Here’s a comprehensive list of mandatory benefits in Armenia:

Social Security Contributions

Employers must register employees with Armenia’s social security system and contribute toward pensions, healthcare and unemployment insurance. Contributions are shared between employers and employees and must be paid monthly. These benefits ensure long-term financial support and access to essential public services. Employers must maintain accurate payroll documentation and comply with reporting requirements.

Paid Annual Leave

Employees in Armenia are entitled to a minimum of 20 working days of paid annual leave per year, or 25 days for those in hazardous or stressful roles. Employers must schedule leave in agreement with employees and keep records of accrual and usage. Paid annual leave ensures employees have adequate rest and contributes to overall wellbeing and productivity.

Sick Leave

Employees who are unable to work due to illness or injury are entitled to sick leave, compensated based on medical certification. Employers cover the initial period of absence, while longer-term leave may be supported through social security programs. Sick leave helps protect employee health and reduces workplace risk.

Maternity and Paternity Leave

Female employees receive 140 days of maternity leave, extended in cases of complications or multiple births. Maternity payments are funded through social security, based on the employee’s salary and contribution history. Fathers are entitled to paid paternity leave shortly after childbirth. Documentation such as medical certificates and birth records is required. These benefits support family wellbeing and recovery.

Workplace Injury and Occupational Safety Protections

Employers are responsible for ensuring safe working conditions and must comply with occupational safety regulations. In case of workplace injuries, employers must cover medical expenses and compensation based on legal requirements. This benefit ensures that employees receive support during workplace accidents and reduces employer liability.

Supplemental Employee Benefits In Armenia

Supplemental benefits are not required by law, but can help you stand out as an employer and attract top talent. They include:

Private Health Insurance

Many employers provide private health coverage to supplement public healthcare services. Private insurance offers employees expanded access to specialists, shorter waiting times and enhanced medical coverage. This benefit is highly valued in competitive industries.

Meal Allowances

Meal stipends or vouchers help employees manage daily food expenses. These allowances are often offered as monthly payments and improve employee convenience and overall wellbeing.

Transport Allowances

Transport benefits support commuting costs, especially for employees travelling from outside urban centres. This perk can boost punctuality, reduce stress and improve job satisfaction.

Supplemental Retirement Plans

Beyond social security, some employers offer voluntary pension plans or employer-matched savings programs. These benefits help employees build long-term financial security and are attractive to experienced professionals.

Professional Development Support

Training programs, workshops, certification courses and tuition assistance help employees advance their careers. Employers offering development support often benefit from enhanced productivity and stronger retention.

Tax Implications of Employee Benefits in Armenia

Employee benefits in Armenia are subject to taxation depending on the type of benefit. Employer social security contributions are tax-deductible business expenses, while certain allowances provided to employees may be treated as taxable income unless specifically exempt.

 
• Ensure proper payroll documentation
 
• Track allowances and reimbursements accurately
 
• Submit taxes and contributions on time to avoid penalties

Employers must maintain clear records to ensure full tax compliance and meet audit or reporting requirements.

Legal Considerations for Employee Benefits in Armenia

Employee benefits in Armenia are regulated by the Labour Code, social security laws and occupational health and safety legislation. Employers must provide statutory paid leave, ensure proper social security registration and maintain safe working conditions. Employment contracts must clearly outline entitlement to benefits.

Non-compliance can result in penalties, fines or legal claims filed by employees. Employers may also be required to make retroactive payments for missed contributions or incorrect leave calculations. Regular reviews of benefit policies and monitoring of legal updates ensure employers remain compliant and aligned with best practices.

Employers should document all leave, contributions and payments carefully to demonstrate compliance during inspections or audits.

How Benefits Impact Employee Cost

Employee benefits form a significant part of total labour costs in Armenia, especially social security contributions and paid leave entitlements. Employers must factor these costs into budgeting and workforce planning.

To manage costs effectively, employers can:

 
• Offer flexible supplemental benefits
 
• Prioritise cost-efficient perks such as transport or meal allowances
 
• Introduce voluntary benefits with shared cost models

Strong benefit packages also boost retention, satisfaction and productivity. In Armenia’s competitive labour market, benefits play a key role in attracting and keeping talent.

How Can Playroll Help with Benefits Management in Armenia?

Managing employee benefits across multiple countries can be complex, but it doesn’t have to be. Playroll simplifies the process by handling administrative tasks, ensuring compliance with local regulations, and providing access to tailored benefits packages in 180+ regions.

With everything managed through a single platform, companies can focus on supporting their teams  – wherever they are.

• Pick and choose from localized benefits packages to attract and retain global talent.
• Built-in compliance to stay ahead of evolving regulations.
• Manage leave, expenses, and more, through one intuitive dashboard.