Employer of Record in Armenia

General information

• Currency: Armenian Dram (AMD)
• Employer Taxes: 0.0%
• Payroll Frequency: Monthly
• Employee Costs: 10%
• Capital: Yerevan
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The national minimum wage in Armenia is set at 75,000 AMD per month, with a minimum hourly wage of 500 AMD. Employees working in hazardous environments receive additional compensation on top of their regular salary.

Payroll

Payroll Cycle: In Armenia, the payroll cycle typically follows a monthly schedule, with wages being paid on the 15th of the subsequent month.

13th Salary: There is no mandatory or customary 13th salary payment in Armenia.

Working Hours

General: According to the Labor Code of the Republic of Armenia (RA), the standard workweek consists of 40 hours, with a daily work period of eight hours.

Overtime: In Armenia, overtime is compensated at 150% of the standard hourly rate for each hour worked beyond regular hours. Night shifts are paid at 130% of the standard hourly rate for each hour worked.

The total working time, including overtime, must not exceed 12 hours per day or 48 hours per week, including breaks. Overtime cannot be incorporated into the regular salary.

Managers are exempt from these overtime restrictions and are not entitled to additional pay for overtime work.

Leave

The minimum number of paid annual leave days in Armenia depends on the length of the working week. Employees who work five days a week are entitled to 20 working days of annual leave, while those who work six days a week receive 24 working days.

The annual leave cycle is based on the employee’s start date rather than a fixed calendar period, such as January to December. A carryover policy is allowed for unused leave.

For employees working in stressful or high-risk environments, the number of annual leave days increases. Those on a five-day workweek can receive up to 35 days of annual leave under exceptional conditions, while those on a six-day workweek are entitled to up to 42 days in extraordinary circumstances.

Typically, employees become eligible for annual leave after six months of continuous employment.

Public Holidays: Public holidays falling on the weekend are usually lost.

Sick Days

Employees are entitled to paid sick leave from the first day of illness until the fifth day, receiving 80% of their average salary, which is covered by the employer. From the sixth day onward, sick pay is provided by social insurance. Employees are eligible for their full benefits as long as they are not absent for more than 120 consecutive days or 140 days within a year.

If the illness or injury is work-related, the Social Insurance Scheme covers the sick leave. Employees can return to work once they are deemed fit.

Employees must inform their employer of their absence on the first day. Upon returning to work, they must provide confirmation of their sick leave from a medical institution for all days missed, on the same day they resume work.

Maternity Leave

In Armenia, employees are entitled to a minimum of 140 days of maternity leave, comprising 70 days before childbirth and 70 days after. If the childbirth is complicated, the maternity leave extends to 155 days (70 days before delivery and 85 days after). For multiple births, the leave is extended to 180 days (70 days before childbirth and 110 days after).

Employers must provide paid maternity leave at 100% of the employee’s average monthly earnings, calculated by dividing the insured’s average monthly earnings by 30.4, which is the 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 following the birth of a child, parents can request up to 5 days of paid parental leave.

Bereavement Leave

Employers are required to grant employees three days of unpaid leave to attend the funeral of a family member.

Marriage Leave

Employers must provide employees with three days of unpaid leave for their marriage.

Brain Source International stands out as a trusted partner in providing EOR services. With their expertise, companies can seamlessly manage their workforce in Armenia, ensuring that all legal requirements are met, including payroll, benefits administration, and contract management. This allows businesses to focus on their core operations while Brain Source International handles the complexities of local employment.

Key benefits of using Brain Source International as your EOR in Armenia include:

1. Compliance Assurance: Brain Source International ensures full compliance with Armenian labor laws, reducing the risk of legal complications.
2. Cost-Efficiency: By utilizing their EOR services, businesses can avoid the significant costs and time associated with setting up a legal entity in Armenia.
3. Streamlined Operations: The administrative burden of managing local employees is handled by Brain Source International, allowing for a more streamlined and efficient operation.
4. Flexibility: Their EOR services are particularly beneficial for companies looking to hire independent contractors or temporary staff in Armenia, providing flexibility without long-term commitments.

For companies aiming to expand into Armenia, partnering with Brain Source International as their EOR ensures a smooth and compliant entry into the market, allowing them to leverage local talent without the complexities of setting up a legal entity.

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