* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Armenian dram (֏)



Employment Cost


Annual Leave

20 days

In-demand Specialties*
It & Software Development, Renewable Energy & Infrastructure, Medicine & Nursing

The Ultimate Guide to Hiring Employees in Armenia

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Armenia

Employing in Armenia requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Armenia with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Armenia quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Hiring in Armenia offers access to a highly skilled workforce, particularly in the tech and IT sectors, driven by a robust emphasis on STEM education.

With lower labor costs compared to many Western countries, hiring in Armenia can provide cost-effective solutions without compromising on quality.

The Armenian government's support through incentives such as tax benefits and grants further enhances the attractiveness of hiring in the country.

Additionally, Armenia's thriving startup ecosystem offers access to innovative ideas and entrepreneurial talent, fostering potential collaborations and advancements.


Fundamental Aspects of Employment in Armenia

Armenia has comprehensive labour laws that typically favour employees. A written employment contract in the local language is a legal requirement. A customary document should include:

  • Identification of both parties
  • Commencement date
  • Job responsibilities and duties
  • Employee's compensation and other benefits

Probationary Period in Armenia

In Armenia, the probation period is typically optional and should not surpass three months if outlined in the contract, unless specified otherwise by labor laws, which may allow for probation periods of up to six months in certain cases.

Working hours in Armenia

As per the Republic of Armenia's labor code, employees are typically permitted to work 8 hours a day for 5 days, constituting a total of 40 hours per week as regular working hours.

Overtime in Armenia

In Armenia, overtime is paid at 150% of the standard hourly rate, while night work is compensated at 130%. The maximum daily working time, including overtime, is 12 hours (48 hours per week), with breaks included. Overtime pay cannot be included in the regular salary, and managers are exempt from overtime restrictions without extra pay.

Navigating Key Aspects of Payroll in Armenia

Armenia has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

January 1st - December 31st

Fiscal Year in Armenia

January 1st - December 31st is the 12-month accounting period that businesses in Armenia use for financial and tax reporting purposes.

Payroll Cycle in Armenia

The payroll cycle in Armenia is usually monthly, with employees being paid 15th day of the following month..
500 AMD p/h

Minimum Wage in Armenia

The minimum wage for employees in Armenia is typically 500 AMD per hour, amounting to ~75,000 AMD per month for a typical 40 hour work week.

Minimum wages and salaries in Armenia

In Armenia, the minimum hourly wage is 500 AMD. Those working in hazardous environments receive a premium on top of their average salary.

Bonus Payments in Armenia

There is no mandatory requirement for employers to provide a 13th-month salary.

Comprehensive Overview of Employment Taxes in Armenia

Understanding the tax obligations for both employers and employees is crucial when operating in Armenia's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Armenia.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 0.0% on top of the employee salary in Armenia.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Armenia, the typical estimation for employee payroll contributions cost is around 5% -10%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Armenia applies a flat tax rate of 20% for personal income tax.

Tax Rate Income Bracket

Pension in Armenia

Armenia's pension system, managed by the State Social Security Service, provides retirement benefits based on contributions. Retirement age is 63 for men and 60 for women, with various pension types available. Reforms aim to ensure system sustainability and efficacy.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Armenia tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

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Understanding the Protocols for Termination of Employment in Armenia

When it comes to terminating employment in Armenia, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Armenia, termination of employees must adhere to specific reasons outlined in labor laws, requiring written justification from the employer. Acceptable reasons may include

  • Loss of confidence in the employee'sperformance
  • Unexcused absence
  • Failure to cooperate with a medical exam

Notice Period

Notice periods in Armenia depend on employee tenure and circumstances:

  • Probationary employees require three days' notice.
  • Mutual agreement for leaving mandates a seven-day notice.
  • Termination due to changes in employment terms necessitates a notice period of 14-60 days based on tenure.
  • Ending fixed-term agreements between employees and employers requires a 10-day notice.

Severance Pay

In Armenia, severance pay varies depending on the reason for termination. For company-related terminations such as liquidation or reduced workforce, employees receive severance equal to the average monthly salary.Employee-related terminations such as disability or old age follow a scale based on length of service:

  • 10x average daily salary for service less than 12 months.
  • 25x average daily salary for service between 1-5 years.
  • 30x average daily salary for service between 5-10 years.
  • 35x average daily salary for service between 10-15 years.
  • 44x average daily salary for service above 15 years.

Annual Leave Entitlements and Company Policies in Armenia

The annual leave entitlement in Armenia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Armenia

Armenia observes 12 national holidays in a year.

Holiday Date

Paid Time Off in Armenia

Maternity Leave in Armenia

Paternity Leave in Armenia

Sick Leave in Armenia

Bereavement Leave

Marriage Leave

Parental Leave In Armenia

Armenia's Benefits Built Into Playroll

Competitive benefits package in Armenia

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Armenia's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Armenia

Make your benefits package in Armenia a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

Statutory benefits for employment in Armenia

In Armenia, mandatory benefits typically include:

  • Social security contributions, covering pensions, disability, healthcare, and unemployment benefits.
  • Paid annual leave, sick leave, and maternity leave as per legal provisions.
  • Minimum wage regulations set by the government to ensure fair compensation.
  • Occupational health and safety standards to protect workers' well-being.
  • Severance pay or compensation in case of termination, subject to labor laws.
  • Mandatory insurance coverage for work-related injuries and illnesses.

Playroll allows you to provide localized benefits for employees in Armenia within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Armenia create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Armenia

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Armenia.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

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