Armenia EOR & PEO
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DID YOU KNOW
Armenia is one of the oldest countries in the world, with a history that spans over 3,000 years. It was the first nation to adopt Christianity as its state religion in 301 AD.
The country is famous for its rich cultural heritage, which includes ancient churches, monasteries, and a thriving arts scene.
The Armenian alphabet is unique and was created in the 4th century AD by Mesrop Mashtots, an Armenian linguist. The alphabet consists of 38 letters – 31 consonants and 7 vowels
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Armenia EOR Services
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Working in Armenia
Financial Year Dates
Armenia’s financial year runs from January 1st to December 31st
Minimum Wage
The minimum wage in Armenia is 75,000 AMD per month, based on a 40-hour working week.
Standard working hours
The standard workweek in Armenia is 40 hours, typically divided into five 8-hour workdays. Most businesses operate from 9 AM to 6 PM, though flexible working hours are becoming more common, particularly in industries such as IT and finance.
Overtime
Overtime in Armenia is typically paid at a rate of 1.5 times the employee’s regular hourly wage for the first 2 hours of overtime. Any overtime beyond that is paid at double the standard rate. Overtime should not exceed 4 hours per day or 48 hours per month unless specified in the employment contract.
Holiday Allowance
Employees in Armenia are entitled to a minimum of 20 working days of paid annual leave. Public holidays are additional to this leave. In some cases, additional leave may be granted based on the terms of the employment contract, or sector-specific agreements.
Sick Leave
Employees in Armenia are entitled to sick leave, with a portion of the salary covered by the social insurance fund. The first 5 days of sickness are paid for by their employer at a rate of 80% of their normal salary. From the 6th day onwards, employees are entitled to paid sick leave, which is reimbursed by the Armenian Social Security Fund at 60% of their average daily salary.
Maternity & Paternity Leave
Maternity leave in Armenia is set at 140 days (70 days before and 70 days after childbirth), during which time the mother receives full pay. Paternity leave is 5 days, paid at the father’s regular wage
Public Holiday
Armenia observes several public holidays throughout the year, including:
- New Year’s Day
- Orthodox Christmas Day
- National Army Day
- International Women’s Day
- Genocide Remembrance Day
- Labor Day
- Victory and Peace Day
- Republic Day
- Constitution Day
- Independence Day
- New Year’s Eve
Social Contributions
In Armenia, both employers and employees are required to contribute to the country’s social security system, which includes health insurance, pensions, and other social welfare programs.
Employers:
- Social Security (Pension, Health Insurance, etc.): 21%
- Unemployment Insurance: 0.5%
Employees:
- Social Security (Pension, Health Insurance, etc.): 5%
- Unemployment Insurance: 1%
Income Tax
The income tax rate on personal income in Armenia is a flat rate of 20% for both residents and non-residents.
- Residents: Taxed on their worldwide income.
- Non-residents: Taxed only on their Armenian-sourced income.
Health Care
Armenia provides universal healthcare through its public healthcare system, which is funded by government contributions and payroll taxes. Health services in Armenia are generally affordable, though there are disparities in quality between urban and rural areas. Many expats and higher-income individuals opt for private healthcare services, which offer faster access and a higher standard of care.
Employers are required to contribute to the healthcare system, and employees also pay a portion of their income towards social health insurance. It is common for employees to supplement their healthcare with private insurance.
Visas
Armenia offers a variety of visa options for foreign nationals looking to work, invest, or reside in the country, including:
Work Visa:
Foreign nationals seeking employment in Armenia must apply for a work visa, which requires sponsorship from an Armenian employer. Work visas are typically issued for up to one year, and are renewable.
Business Visa:
Entrepreneurs and investors looking to establish or run a business in Armenia can apply for a business visa. This visa category allows individuals to engage in commercial activities, including setting up a company in Armenia.
Temporary Residence Visa:
This visa allows foreigners to live in Armenia for a period of up to one year. After this time, individuals may apply for permanent residency.
Family Reunification Visa:
Armenia allows foreign nationals working in the country to bring their family members through a family reunification visa program, provided they meet the necessary requirements.
By choosing Gibson Watts Global as your Employer of Record (EOR) in Armenia, you can tap into the country’s growing business potential while ensuring compliance with local laws and regulations. Let us handle the administrative details so you can focus on expanding your business in this dynamic and culturally rich region.
13th salary
Armenia does not have a statutory requirement for a 13th salary. However, in some industries, it is common for employers to provide a bonus or extra salary payments, particularly around the holidays.
Cultural Information
- Armenia is a country with a rich cultural heritage, and its people are known for their warmth, hospitality, and pride in their history. Armenian culture is deeply intertwined with its ancient Christian traditions, with religious festivals and holidays playing a significant role in everyday life. The country is also renowned for its arts, including music, dance, and literature, with a strong tradition of folk and classical music.
- Armenians are proud of their cuisine, which features dishes such as khorovats (barbecued meat), dolma, and lavash (traditional Armenian bread).
- The duduk, a double-reed woodwind instrument, is considered the national instrument of Armenia and is known for its soulful and melancholic sound.
Impact of COVID-19
The pandemic has led to a significant shift towards remote and hybrid working models. Many companies are now adopting flexible working policies, which enhance employee satisfaction and productivity.