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Armenia – Employer of Record

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Country Introduction – Armenia

Capital –  Yerevan
Currency –  Armenian Dram (AMD)
Population –  2.963 Million
GDP –  $12.65 Billion USD
Language –  Armenian & Russian
Major Religions – Christianity

Armenia is located in Transcaucasia, is just south of the great mountain range of the Caucasus and fronting the north western extremity of Asia. To the north and east Armenia is bounded by Georgia and Azerbaijan. while its neighbours to the southeast and west are, respectively, Iran and Turkey. Modern Armenia comprises only a small portion of ancient Armenia, one of the world’s oldest centres of civilization. At its height, Armenia extended from the south-central Black sea coast to the Caspian sea and from the Mediterranean sea to Lake Urmia in present-day Iran

Snow-capped Mount Ararat is the principal national symbol of Armenia and is considered by many Armenians to be sacred. The massif has featured prominently in Armenian art and literature and is depicted on the country’s coat of arms, however it is actually located within Turkey. It hasn’t always been that way: the holy mountain has been passed between the Kingdom of Armenia, Persia, Russia and Turkey.

The Armenian capital, Yerevan, is one of the world’s oldest inhabited cities, constructed as it was 29 years before Rome. Overlooked by the snow-capped Mount Ararat, the capital has a bewildering number of historic buildings, not to mention a clutch of excellent museums.

According to Guinness World Records, the longest non-stop double track cable car is the Tatev Aerial Tramway, which clocks in at 5,752 m (18,871ft) long. The spectacular cable car connects the village of Halizor with the Tatev Monastery, offering spectacular views across the Vorotan River Gorge en route.

Contract of Employment

Employment contracts must be put in writing in Armenia. The employment contract must outline all the terms of employment, along with the renumeration and entitlements. The employment contract should be in local language.

Probation Period

Up to a maximum of 3 months.


The notice period in Armenia varies in line with time spent in employment.

14 days notice – less than 1 year of employment.
35 days notice – 1 to 5 years of employment.
42 days notice – 5 to 10 years of employment.
60 days notice – more than 10 years of employment.

Working Hours

40 hours per week. Monday to Friday.


Overtime in Armenia is a maximum of 4 hours per day, paid at 1.5x the employees hourly rate.

Annual Leave

Annual leave is a minimum of 20 days per year. The employee can start to use annual leave after 6 months of continuous employment.

Sick leave

The first 2 to 5 days of sick leave are paid by the employer. From day 6 onwards the employee is paid for sick leave by the social security.

Maternity Leave

Female employees are entitled to 140 days of paid leave. 70 days are to be taken anytime before birth and 70 days are to be taken after birth. The maternity leave is paid by the employer in full.

Paternity leave is 5 days of paid leave during the first 30 days of the child’s birth.


The VAT rate in Armenia is 20%.

Income Tax

Income tax in Armenia is a flat rate of 21%.

Employer/Employee Contributions

Employer contribution in 0%. There are no employer contributions.

Employee contribution ranges from 4.5% to 10%. The contributions consist of the following:

4.50% – Pension fund (If the monthly gross income is less than 500,000 AMD).
10% – Pension fund (if the monthly income is more than 500,000 AMD), capped at AMD 27,500

Public Holidays

There are 16 paid public holidays in Armenia.

Severance Pay

Severance pay in Armenia depends on the reason for severance and whether it is due to the employee or employer. The severance ranges from 2 weeks of pay up to 9 weeks of pay in line with the length of employment.

13th Month Salary

This is not applicable in Armenia.

Work and Residence Permits (Expatriates)

 Most foreigners must apply for a work permit, sponsored by the local employer, in order to work in Armenia. After obtaining the work permit, the foreigner must apply for temporary residence permit at the Passport and Visa Department of the Police in Yerevan. The temporary residence permit is normally issued within 30-45 days.

EWS can help employees obtain the relevant right to work and live in Armenia.

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