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Hire and manage employees in Armenia

As your Employer of Record (EOR) in Armenia, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
July 16, 2025
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Quick facts

Armenia is located in the South Caucasus, bordered by Georgia from the north, Iran – from the south, Azerbaijan – from the north-east and the south-west, Turkey – from the west.The Republic of Armenia occupies a territory of 29 800 sq. km, lying at an average altitude of 1800 m above sea level. The capital is Yerevan. According to the general census of 2019, the population of Armenia is 3 million, 1.1 million of which is residented in Yerevan.

Employment Contracts

Employment contracts in Armenia can be established for:

  1. Indefinite periods: When no end date is specified.
  2. Fixed periods: If a term is specified in the contract.

Probation Period

The probation period in Armenia is generally limited to three months, but in some cases, the law allows it to extend to six months.

Working Hours

The standard working week is 40 hours, with a maximum of 8 hours per day. Exceptions may apply based on legislation or agreements, with a maximum of 12 hours per day (including breaks) and 48 hours per week, including overtime. Special categories of workers (e.g., healthcare, guardianship, energy services) can work up to 24 hours per day, but the weekly total cannot exceed 48 hours.

Vacation Days

Employees are entitled to a minimum of 20 working days of annual leave for a five-day workweek or 24 working days for a six-day workweek. Leave can be split into parts if agreed upon, with at least one part consisting of 10 working days (for a five-day week) or 12 working days (for a six-day week). Additional leave may be granted to those working under harmful conditions, with irregular schedules, or in specific jobs.

Sick Leave

Employees are entitled to a sickness benefit for the duration of their temporary disability, starting from the first day of absence. The employer covers the first five days of sick leave, while the state covers the remainder. The sick leave compensation is calculated at 80% of the employee's average salary.

Wages and Salary Payment

All wages must be paid in Armenian dram (AMD). The minimum wage is 68,000 AMD per month. Employees must receive their pay at least once a month, no later than the 15th of the following month. Work on rest days must be compensated at double the regular wage.

Public Holidays

Armenia recognizes the following public holidays:

  1. December 31 - January 2: New Year.
  2. January 6: Christmas.
  3. January 28: Day of the Army.
  4. March 8: Women’s Day.
  5. April 24: Genocide Remembrance Day.
  6. May 1: Labor Day.
  7. May 9: Victory and Peace Day.
  8. May 28: Republic Day.
  9. July 5: Constitution Day.
  10. September 21: Independence Day.

Employer Taxes

Employers in Armenia are not subject to specific employment-related taxes.

Employee Taxes

Income tax: 22%.

Military Personnel Insurance Fund contributions:

  1. Less than 100,000 AMD: 1,500 AMD.
  2. 100,001 - 200,000 AMD: 3,000 AMD.
  3. 200,001 - 500,000 AMD: 5,500 AMD.
  4. 500,001 - 1,000,000 AMD: 8,500 AMD.
  5. Over 1,000,000 AMD: 15,000 AMD.

Social Tax (for those born after 1974):

  1. Salary under 500,000 AMD: 3.5%.
  2. Salary between 500,001 - 1,020,000 AMD: 10% minus 32,500 AMD.
  3. Salary above 1,020,001 AMD: 69,500 AMD flat.

Notice Period

For company liquidation, the employer must provide two months' notice. For fixed-term contracts, the notice period is 10 days. For collective dismissals, employees must notify the state employment service and union three months in advance. Individual notice periods vary:

  • 5 days after 1 year of service.
  • 6 days after 5 years.
  • 7 days after 10 years.

Termination and Severance Pay

Employment contracts may be terminated by:

  1. Agreement of both parties.
  2. Contract expiration.
  3. Employee resignation.
  4. Employer decision.
  5. Other legal grounds.

In case of company liquidation or downsizing, employees are entitled to severance pay equivalent to their average monthly wage. Specific circumstances (e.g., retirement or military conscription) may warrant severance pay equal to a two-week wage.

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Frequently
Asked
Questions

What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Do you provide employment agreements?

Yes, Acvian provides both permanent and fixed-term employment contracts, with the possibility of extension. After the second extension, the contract becomes indefinite.

How do employees view their payroll?

Employees can view their payroll details through the monthly payslips they receive and also via the Acvian platform.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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