Payroll and Benefits Guide Armenia
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
0.00%
|
|
| 0.00% |
Total Employment Cost |
| Employee Payroll Contributions | |
| 5.00% |
Pension fund – if the monthly gross income is less than 500,000 AMD
|
|
10.00%
|
Pension Fund. Applied for monthly gross income higher than 500,000 AMD with a maximum threshold of AMD 1,125,000. The maximum social payment is capped at AMD 87,500 per month. |
| 5.00% -10.00% |
Total Employee Cost |
| Employee Income Tax | |
|
20%
|
Flat Rate
|
Employer taxes
Employee taxes
Minimum Wage
General
The National Monthly Minimum Wage is 75,000 AMD in Armenia and the minimum hourly wage is 500 AMD (those who work in hazardous environments earn a premium over their average salary).
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payroll cycle in Armenia is generally a monthly cycle, with wages paid on the 15th day of the following month.
13th Salary
There is no mandatory or customary 13th salary payment in Armenia.
Working Hours
General
The Republic of Armenia (RA Labor Code) states that the standard working hours are 40 hours per week and a daily work period is eight hours.
Overtime
- Maximum Ordinary Hours (Article 139): The standard work limit is 8 hours per day and 40 hours per week. Any work beyond these hours is considered overtime.
- Absolute Maximum Work Time (Article 139): The total working time, including overtime, must not exceed 12 hours per day (including rest breaks) and 48 hours per week.
- Daily Overtime Cap: Overtime work is limited to 4 hours over two consecutive days.
- Annual Overtime Cap (Article 145): Overtime work must not exceed 120 hours in a calendar year.
- Consent: Employers must obtain the consent of the employee before requiring overtime, except in cases of emergency necessary to prevent the interruption of work or to avert significant danger.
- Exemptions: Senior managerial and executive positions are typically exempt from the overtime limits and pay regulations.
Mandatory Overtime Pay Rates (Article 179)
The Labour Code mandates minimum premium rates for overtime compensation.
| Day/Condition | Minimum Premium Rate (Statutory) | Total Pay Rate | Notes |
| Normal Overtime (Working Days) | 1.5 times the employee’s regular hourly rate. | 150% | Applies to hours worked beyond 8/day or 40/week. |
| Weekly Rest Day (Weekends) | 2 times the employee’s regular hourly rate. | 200% | The employee is entitled to double the remuneration for work performed on their designated weekly rest day. |
| Public Holiday Work | 2 times the employee’s regular hourly rate. | 200% | The employee is entitled to double the remuneration for work performed on official public holidays. |
| Night Work (10:00 PM – 6:00 AM) | 1.3 times the employee’s regular hourly rate. | 130% | This premium applies for work performed during the designated night period, and is cumulative with any applicable overtime or rest day premium. |
Leave
Annual Leave (vacation)
The minimum days of paid annual leave are based on the working week. If an employee works five days a week, they will be entitled to 20 working days annual leave; however, if an employee works six days a week, they receive 24 working days annual leave.
The annual leave cycle is based on the individual worker’s start date not from a fixed calendar month such as January to December. It is permitted to a carryover policy for unused leave.
Should employees work in stressful or high-risk conditions, the number of days of annual leave increases. Employees who work a five-day working week would receive an annual leave entitlement of up to 35 days in exceptional conditions. Those who work a six-day working week are entitled to up to 42 days of annual leave in extraordinary circumstances.
Generally, employees can access annual leave after six months of continuous work.
Paid Time Off
Under Armenian labor law, unused annual leave can be carried over to a future period if the employee agrees — there isn’t a broad rule that all unused PTO expires at year-end as a matter of law. Carryover is based on mutual agreement between employer and employee rather than automatic forfeiture. Additionally, if an employee avoids taking leave for 2½ years, the employer may step in and schedule the leave to ensure it’s taken.
Public Holidays
Public holidays falling on the weekend are usually lost.
| Date | Day | Holiday |
|---|---|---|
| 1 Jan 2026 | Thursday | New Year’s Day |
| 2 Jan 2026 | Friday | New Year Holiday (Day 2) |
| 6 Jan 2026 | Tuesday | Christmas Day (Armenian Apostolic) |
| 28 Jan 2026 | Wednesday | Army Day (National Army Day) |
| 8 Mar 2026 | Sunday | International Women’s Day |
| 24 Apr 2026 | Friday | Genocide Remembrance Day (Armenian Remembrance Day) |
| 1 May 2026 | Friday | Labour Day (International Workers’ Day) |
| 9 May 2026 | Saturday | Victory and Peace Day (Victory Day / Peace Day) |
| 28 May 2026 | Thursday | Day of the First Republic / Republic Day |
| 5 Jul 2026 | Sunday | Constitution Day |
| 21 Sep 2026 | Monday | Independence Day |
| 31 Dec 2026 | Thursday | New Year’s Eve |
Sick Days
Employees are entitled to receive paid sick leave from the first day to day five of sickness at 80% of the average salary, with the employer paying. From day six, the sick pay is covered by social insurance. If an employee is absent for fewer than 120 successive days or 140 days within a year, they remain entitled to their full benefits.
The Social Insurance Scheme is responsible for paying an employee’s sick leave if this is due to a work-related injury or illness. The employee may return to work when they are healthy enough to do so.
The employee must notify the employer on the first day of absence.
The employee must provide the employer with sick leave confirmation for all days of absence from the medical institution on the same day when he arrives to work after sick leave.
Maternity Leave
In Armenia, an employee is entitled to at least 140 days of maternity leave (70 days during pregnancy and 70 days following the child’s birth). The maternity leave entitlement increases to 155 days (70 days of pregnancy, 85 days from delivery) in the case of complicated childbirth. For multiple births, the leave entitlement would increase to 180 days (70 days of pregnancy, 110 days from childbirth).
Employers must provide paid maternity pay at 100% of the insured’s average monthly earnings (regardless of the number of years of covered employment) divided by 30.4 (average number of days in a month).
Paternity Leave
New fathers are entitled to 5 days of paid leave within the first 30 days of the child’s birth.
Parental Leave
Within the first month of the child’s birth, it is possible to request up to 5 days of paid parental leave.
Other Leave
Bereavement leave
Employers must provide employees with three days of unpaid leave to attend the funeral of a family member.
Marriage Leave
Employers must provide employees three days of unpaid leave in the event of their marriage.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
Employers must have a valid reason to terminate an employee and must provide notice before doing so. The notice period is generally linked to the length of employment with the company.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| The typical pay cycle is monthly, often paid on the 15th of the following month. | Upon termination the employer must pay all wages and other dues on the day of termination unless otherwise agreed; Article 130(2) of the Labour Code states the obligation to make the final payment “on the day of termination” unless another date is agreed upon. | not available |
Notice Period
The notice periods are as below:
An employee gives 30 days’ notice to resign unless a collective agreement outlines a longer period.
- For the employer, during the probation period, only 3 days’ notice is required
- For service of less than 1 year, 14 days’ notice is required
- Between 1- and 5 years of service, 35 days’ notice
- After 5 to 10 years of service, 42 days’ notice
- More than 10 years of service, 60 days’ notice
Severance Pay
Severance pay depends on the reason for termination. Company-related terminations (e.g., liquidation, redundancy/downsizing, or reinstatement into a prior role) generally entitle the employee to one average monthly salary (typically applicable to employees with 1+ year of service). Employees with more than 10 years of service may be entitled to one average monthly salary plus an additional average monthly salary for each year of service exceeding 10 years.
Employee-related terminations (e.g., long-term disability, old age, significant changes in working conditions, or compulsory military service) require severance to be calculated based on length of service as follows:
fewer than 12 months of employment service – 10x average daily salary
Between 1- and 5 years of employment service – 25x average daily salary
Between 5 to 10 years of employment service – 30x average daily salary
Between 10 to 15 years of employment service – 35x average daily salary
More than 15 years of employment service – 44x average daily salary
Probation Period
Probationary periods are generally three months and will be referenced in the employee’s contract of employment. Should either the employee or the employer wish to terminate before the three-month probation period, either may terminate the employment contract with three days’ notice.
Immigration
Individuals entering Armenia for business must obtain a work permit sponsored by their employer to work in Armenia legally.
Generally, a holder of an Armenian visa is not entitled to work in Armenia unless they also hold a work permit. However, some highly skilled foreign specialists, business owners, executives, and other workers are exempt from the work permit requirement.
Unless a foreign individual is exempt from the work permit requirement, the employer must first obtain a work permit by applying to the Ministry of Labor and Social Affairs (MLSA) before the employee starts their employment.
The MLSA tests the Armenian market to ensure that there are no qualified and available Armenian workers to fill the position internally. When a work permit is granted, the foreign national can start working in Armenia, but it does have a fixed term and is renewable on request.
After obtaining the work permit, the foreign national must file an application for a temporary residence permit at the Passport and Visa Department of the Police in Yerevan. The application must be accompanied by the requested supporting documentation, including medical test results. The temporary residence card is issued within approximately 30-45 days of the application date if accepted.
Specific individuals may qualify for temporary residence in Armenia, including those entering on a contractual basis, international students, journalists, and researchers. Temporary residence is granted for one year and can be extended for a maximum of one additional year.
VAT
General
The general rate of VAT in Armenia is 20%.
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Version History
Personal Income Tax: Changed from 22.00% to 21.00%
Questions & Answers
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Payroll and Benefits Guide
in Armenia
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday |
|---|---|---|
| 1 Jan 2026 | Thursday | New Year’s Day |
| 2 Jan 2026 | Friday | New Year Holiday (Day 2) |
| 6 Jan 2026 | Tuesday | Christmas Day (Armenian Apostolic) |
| 28 Jan 2026 | Wednesday | Army Day (National Army Day) |
| 8 Mar 2026 | Sunday | International Women’s Day |
| 24 Apr 2026 | Friday | Genocide Remembrance Day (Armenian Remembrance Day) |
| 1 May 2026 | Friday | Labour Day (International Workers’ Day) |
| 9 May 2026 | Saturday | Victory and Peace Day (Victory Day / Peace Day) |
| 28 May 2026 | Thursday | Day of the First Republic / Republic Day |
| 5 Jul 2026 | Sunday | Constitution Day |
| 21 Sep 2026 | Monday | Independence Day |
| 31 Dec 2026 | Thursday | New Year’s Eve |
Hi, can an employee receive payment for unused vacation days?
Hi Kaylee, yes, the employee can choose to either receive unused annual leave or to receive monetary compensation in case of not using leave.
How many official holidays + vacation days are there in a year in Yerevan?
There are 16 public holidays + 20 working days of paid vacation.
Hi, may I know if one taking paid leave , will he get deduction on salary due to leave taken?
In Armenia, it depends on the company’s policies and any relevant labor laws. Generally, employees are entitled to paid leave, such as vacation time or sick leave, and this time off is typically factored into their salary.
How many sick days a year are mandated by law for an employee in Armenia?
Hi, you can find all the information you need in this page.
Hi, are there any benefits in Armenia, lets say employer pays Premium private health insurance or Private pension fund? anything like that or similar?
Many companies will offer private health insurance. Some companies also choose to give remote working allowance or meal allowance.