Hiring in Armenia


- Minimum wage
- AMD 75,000 / month
- Average salary
- AMD 303,140 / month
- Employer contributions
- 0%
- Income tax
- 20% flat
- Paid leave
- 20 working days
- Public holidays
- 13
- Probation
- up to 3 months
- Notice period
- 14 days – 2 months
General information, not legal or tax advice — confirm with a local adviser before you act.
Contents
You can hire in Armenia through:
- Your own Armenian entity.
- An employer of record.
- Contractors.
Ordinary employer payroll tax is 0%. Budget salary, statutory benefits and any specific employer-funded duties separately.
The Tax Code's closed list of state taxes has no employer payroll tax. Employees ordinarily bear 20% flat income tax and applicable pension, health and stamp withholdings; the employer handles these as tax agent.
The minimum wage is AMD 75,000 / month. The average salary is AMD 303,140 / month.
Three ways to hire in Armenia
Your Armenian entity or an employer of record employs the person. A genuine contractor is self-employed under a civil-law contract.
| Route | Legal employer | What you pay on top of salary | How you end it |
|---|---|---|---|
| Your own entity | Your Armenian company | 0% ordinary employer payroll tax; benefits and specific duties apply | 14 days – 2 months by ground; 30 days when the employee resigns |
| Employer of record | The provider | Benefits, applicable employer-funded duties and the provider's fee; the EOR page gives the cost structure | Through the provider as legal employer; the EOR page covers the terms |
| Contractor | None: the contractor is self-employed under a civil-law contract | Contract price; the contractor page covers tax treatment | Under the contract; labour law applies only if a court establishes an employment relationship |
Entity registration takes 1 to 2 business days, and the step-by-step table below shows what follows.
Without an entity, assess employment status and permanent-establishment exposure separately. The section on hiring without an entity covers the qualifying service activity, 183-day test and other PE triggers.
The legal employer must provide statutory benefits and perform the specific payment duties that accompany salary. A genuine contractor works under a civil-law contract.
No specific provision on employer of record or staff leasing was found in the cited Labour Code.
A contractor moves under labour law only when a court finds that the relationship is in fact employment.
The Armenian labour market and what people earn
The average monthly nominal wage in Armenia for 2025 was AMD 303,140 / month, and the cumulative average for January–August 2026 is AMD 312,486. Both are preliminary Armstat figures for organisations with at least one employee.
Salary reference points
| Minimum monthly wage | AMD 75,000 / month | Minimum wage law |
| Average monthly nominal wage, 2025 | AMD 303,140 / month | Armstat |
| Average monthly nominal wage, January–August 2026 | AMD 312,486 / month (non-state sector AMD 336,510; state sector AMD 248,578) | Armstat |
| Information and communication, December 2025 | AMD 1,010,668 against AMD 376,743 for the whole economy that month | Armstat |
The Information and communication figure covers December 2025 alone and may include year-end pay. It averages all employees in the sector. These cited Armstat figures do not provide a role-specific salary range for budgeting a developer hire.
Registering as an employer in Armenia, step by step
Company registration takes 1 to 2 business days; no bank-account timing is given here.
Where required, register the employee by the end of the day before work starts, or by 14:00 on the hiring day for a same-day start. Pay salary and file tax reports each month.
| Step | What happens | Takes |
|---|---|---|
| Choose and register the entity | A foreign legal-entity founder submits its management body's decision, its name and registration number, with all documents translated into Armenian and notarised. Online registration needs an Armenian ID card and digital signature; foreign citizens register in person | 1 business day with individual founders; 2 where a legal entity is among the founders and no standard forms are used |
| Open a bank account | Company account for salary and tax payments | Not published |
| Register each employee where required | File application No. 79 free of charge on the SRC platform by preceding-day end, or hiring-day 14:00 for a same-day start. Foreigners without residence status and stateless persons are excluded | Up to 15 minutes; notice issued immediately |
| Pay the first salary | In Armenian currency, cash or non-cash | By the 15th of the next month |
| File the tax and social report | Monthly income tax calculation report, which also covers social fees | By the 20th of the next month |
| Total | Entity registration, plus the bank account step, which is not published | 1 to 2 business days to the entity |
Using the statutory standard forms makes registration immediate, according to the company registration guide. The employee registration service covers application No. 79, and the Labour Code sets the salary date.

After company registration, prepare the written contract and hiring act, then file applicable employee registration within the legal deadline. Salary and tax reporting fall on the following month’s 15th and 20th.
The filing rule excludes foreigners without residence status and stateless persons. The contractor route has no legal employer and follows a different tax process.
Hiring and onboarding in Armenia
You need a written employment contract and an individual hiring act before work starts. Armenian law allows a probation period of up to 3 months.
Legal limits on contracts and probation
- Probation: up to 3 months, or up to twelve where other legislation provides for it. Periods of absence do not count towards it. During probation either side ends the contract with three days' written notice, per the Labour Code.
- Written form: work without a written contract or without the individual hiring act is illegal employment, and a court can recognise the employment from the day the person actually started.
- Contract term: indefinite employment is the default, subject to Article 95 fixed-term exceptions, including temporary work up to two months, seasonal work and substitution. Foreigners needing residence status to work in Armenia have a contract for the permission/residence-right period.
- Digital contracts: use is voluntary until 1 July 2027, then generally mandatory, subject to paper exceptions. The date moved from 1 January 2026, according to EY Armenia.
- Paper abroad: contracts with people working outside Armenia stay on paper, including after 1 July 2027.
- Paper in Armenia: foreigners, refugees and asylum seekers may use paper contracts after that date, with entry into the digital system within three months of the document confirming lawful residence.
- Existing contracts: upload by 30 June 2028 under laws HO-39-N and HO-40-N.
For a foreign hire, check permit exemptions before applying the consent/card route in the next section.
Onboarding checklist
- Written employment contract signed before work starts.
- Individual hiring act issued.
- Where required, file application No. 79 by preceding-day end, or hiring-day 14:00 for a same-day start. Foreigners without residence status and stateless persons are excluded.
- Funded pension enrolment for staff born on or after 1 January 1974, per the Law on Funded Pensions; older staff may join by application.
- Confirm health-insurance coverage start and continued-premium duties before withholding. The SRC guidance gives the salary bands; the tax section below explains coverage timing.
- Salary set in Armenian currency and paid by the 15th of the following month.
Hiring a foreigner: permits, residence cards and the 1 November 2026 change
Citizens of Eurasian Economic Union (EAEU) states need no work permit but still apply online to confirm lawful residence.
Check other foreigners for applicable permit exemptions. If a permit is required, Ministry of Labour consent takes up to 15 working days; the residence card is issued within 30 days of application. These are separate maxima.
The state fee for a temporary residence status and card is AMD 105,000 until the fee change described below.
| Who | What you need | Time and fee |
|---|---|---|
| EAEU citizen | No work permit; online application to confirm lawful residence | Not published |
| Other foreigner requiring a permit | Ministry of Labour consent through the online work permit system, then a residence card | Consent up to 15 working days; card within 30 days of the application; AMD 105,000 for temporary residence until the change below |
| Person working remotely from outside Armenia | Paper employment contract, outside the digital system, also after 1 July 2027 | Not published |

For a foreign hire, establish work location and citizenship, then check exemptions before using the permit route. Consent and card timings are separate legal maxima; the amended law’s employment-permit provisions await the new e-entry-visa system.
What the amended Law on Foreigners changes
The Law on Foreigners, HO-11-N, is in force from 1 November 2026, and the unified electronic platform for foreigners launches the same day. EY Armenia lists these changes:
- The work permit becomes a permit to stay or reside in Armenia for the purpose of employment.
- The exemption for employees of foreign commercial organisations working through branches or representative offices is abolished.
- The exemption for founders and directors of commercial organisations with 50% or more foreign participation is abolished.
- An annual Government quota on residence statuses applies, and the extension procedure is removed. The quota has not been set.
- The provisions on the work visa and on the permit for employment take effect only after the new electronic entry-visa system starts, so not necessarily on 1 November.
- The new work entry visa is valid for up to 120 days, without extension, once per calendar year.
Start permit work early: EY Armenia warns that employers may face challenges in hiring foreign workers because of the quota and the abolished exemptions.
Residence fees: AMD 150,000 and 250,000 by 1 November 2026 at the latest
Law HO-215-N raises the state duty for examining a residence application to AMD 150,000 for temporary residence and AMD 250,000 for permanent residence, plus AMD 5,950 for issuing the card.
That makes AMD 155,950 and AMD 255,950 in total.
The law takes effect on the tenth day after the migration authority announces the launch of the unified electronic platform, and not later than 1 November 2026.
The fees it replaces are AMD 105,000 for temporary and AMD 140,000 for permanent residence. EY adds that the fee is no longer refunded if the application is declined.
Hiring in Armenia without an entity: where a permanent establishment starts
The Tax Code has several permanent-establishment tests. The 183-day service test concerns qualifying works/services by non-resident-hired staff in Armenia; personal presence alone does not settle PE exposure. Employment classification is a separate assessment.
- 183 days: qualifying works/services in Armenia must be performed by staff hired by the non-resident. The threshold is at least 183 calendar days within a tax year, counting one project or related projects together.
- Management place, branch or representative office: PE from day one, except a representative office performing exclusively preparatory/support activity for under three years.
- Dependent agent: an agent meeting the Tax Code's dependent-agent conditions creates a permanent establishment for the non-resident.
- Registration: a non-resident with a permanent establishment must register with the tax authority as a taxpayer. If it does not, the rules for non-residents without a permanent establishment apply to it.
The employer procedures earlier assume an Armenian employer. A foreign employer’s labour-law position remains unsettled: Article 7(4) reaches employees permanently residing in Armenia, while Article 14(1.1) determines whether a contract signed abroad counts as arisen in Armenia.
An employment relationship needs an employer regardless of PE exposure. Using a provider or a civil-law contract does not by itself settle service-PE counting or dependent-agent authority; whether provider-employed staff count for your company remains unresolved.
Two routes avoid an entity altogether:
- The employer of record page explains the model in which a provider is the legal employer.
- The independent contractors page explains engaging a self-employed person under a civil-law contract.
Minimum wage in Armenia
The statutory minimum wage is AMD 75,000 / month, unchanged since 1 January 2023, when Law HO-501-N of 7 December 2022 took effect.
The minimum excludes taxes and mandatory fees under Labour Code Article 179. An AMD 75,000 gross-pay example with deductions would therefore fall below a compliant minimum-pay offer.
| Monthly rate | AMD 75,000 / month | Minimum wage law |
| Hourly tariff, 40-hour week | AMD 450 | Minimum wage law |
| Hourly tariff, up to 24 hours a week | AMD 750 | Minimum wage law |
| Hourly tariff, 36-hour week | AMD 500 | Minimum wage law |
| What the minimum excludes | Taxes, social and other mandatory payments, bonuses, additional payments, awards and premiums | Labour Code |
| What the minimum sets | The ceiling of the pension contribution base: 15 times the minimum, AMD 1,125,000 | Law on Funded Pensions; PwC |
The hourly figures are legal tariffs for piece-rate and hourly-paid workers, not the monthly wage divided by hours.
The minimum also sets the top of the pension base: the Law on Funded Pensions charges no social fee on income above 15 times the minimum.
PwC puts that threshold at AMD 1,125,000, so any rise in the minimum wage would also lift the ceiling.
Minimum wage history
| From 1 July 2013 | AMD 45,000 | Minimum wage law, 2013 |
| From 1 July 2014 | AMD 50,000 | Minimum wage law, 2014 |
| From 1 July 2015 | AMD 55,000 | Minimum wage law, 2015 |
| From 1 January 2020 | AMD 68,000 | Minimum wage law, 2020 |
| From 1 January 2023 | AMD 75,000 | Minimum wage law |

The latest of the five rates is AMD 75,000, in force since January 2023. No increase has been enacted: the law still says AMD 75,000.
On 13 August 2026 the Prime Minister said the government prefers to resolve health insurance rather than raise the minimum wage, as reported by Armenpress.
Bonuses, the 13th salary and non-competes
No 13th salary is mandatory in Armenia. Chambers Employment 2026, in a chapter by Shushan Stepanyan of Concern Dialog, says bonuses are at the employer's discretion and set in the contract or internal acts.
The same chapter reports no explicit regulation or reported court cases on post-termination non-competes. How a court would treat one remains unpredictable.
Write any non-compete clause into the contract, but do not budget on enforcing it.
Taxes and contributions: what the employer pays and what the employee pays
Ordinary employer payroll tax is 0%: the Tax Code’s closed list of state taxes has no such levy. Employer-funded benefits, childcare pension and specific health-premium duties are separate from that rate.
As tax agent you calculate, withhold and remit the employee's income tax, pension fee, health premium and stamp duty.
What is withheld from the employee
| Item | Amount | Who bears it | Source |
|---|---|---|---|
| Income tax | 20% flat of gross salary | Employee; you calculate, withhold and remit | Tax Code |
| Funded pension fee | 5% of salary up to AMD 500,000; above that 10% of salary minus AMD 25,000. No fee on income above the AMD 1,125,000 base ceiling, so the maximum is AMD 87,500. The state tops the fee up to 10% with up to AMD 25,000. Mandatory for staff born on or after 1 January 1974 | Employee; you withhold | Law on Funded Pensions |
| Health premium | For covered staff: AMD 4,800 at salary up to AMD 500,000; AMD 10,800 from AMD 500,001. The 2026 entry threshold is AMD 200,001; coverage starts under Art. 45 and continues after later salary reductions. No calculation for employees under 18 or Armenian citizens aged 65 and over | Ordinarily employee; you withhold. Specific continuity duty below | SRC; UHI Law |
| Stamp duty | AMD 1,000 for salary up to AMD 1,000,000; AMD 15,000 from AMD 1,000,001 | Employee; you withhold | SRC |
| Pension amount during childcare leave | AMD 3,000 a month, from the month after leave starts until the child reaches two | Employer | Law on Funded Pensions |
| First five sick days | Benefit for the five working days after the unpaid first day | Employer | Hartak |
| Employer payroll tax | 0% | No ordinary employer payroll-tax levy | Tax Code |
Income tax is 20% of the full gross salary. The State Revenue Committee guidance shows pension fee, stamp duty and health premium as separate withholdings, not deductions before tax.
Under the stamp duty law, foreign citizens without residence status do not pay the duty.
What an employee actually costs you
This table covers salary and employee withholdings, excluding employer-funded benefits and other duties. It assumes a tax-agent employer and an adult employee born on or after 1 January 1974, already enrolled in health insurance in 2026.
All seven scenarios are monthly AMD amounts. Health premiums are borne by the employee here; the first month a salary reaches the qualifying threshold does not automatically carry a health deduction.
| Gross (AMD / month) | Salary cost before additional items | Income tax | Pension fee | Stamp duty | Health premium | Employee's net |
|---|---|---|---|---|---|---|
| 303,140 | 303,140 | 60,628 | 15,157 | 1,000 | 4,800 | 221,555 |
| 500,000 | 500,000 | 100,000 | 25,000 | 1,000 | 4,800 | 369,200 |
| 500,001 | 500,001 | 100,000 | 25,000 | 1,000 | 10,800 | 363,201 |
| 1,000,000 | 1,000,000 | 200,000 | 75,000 | 1,000 | 10,800 | 713,200 |
| 1,000,001 | 1,000,001 | 200,000 | 75,000 | 15,000 | 10,800 | 699,201 |
| 1,010,668 | 1,010,668 | 202,134 | 76,067 | 15,000 | 10,800 | 706,668 |
| 2,000,000 | 2,000,000 | 400,000 | 87,500 | 15,000 | 10,800 | 1,486,700 |
Rounding each component to whole AMD can create a difference of 1 from the total. In the 1,010,668 row, components add to 304,001 against 304,000. Net equals gross minus the total.
The 303,140 and 1,010,668 rows use the average wage and the Information and communication figure from the salary section.

At the four salary levels plotted, net pay and withholdings add up to gross. Budget statutory benefits and other employer-funded obligations separately.
For the already-insured employee in these examples, net pay moves at three thresholds:
- The health premium jumps from AMD 4,800 to AMD 10,800 at AMD 500,001.
- The pension formula changes at AMD 500,000 but stays continuous: both formulas give AMD 25,000 there.
- Stamp duty jumps from AMD 1,000 to AMD 15,000 at AMD 1,000,001.
Net pay therefore falls at two points:
- From AMD 500,000 to AMD 500,001 gross, by about AMD 6,000: from AMD 369,200 to AMD 363,201.
- From AMD 1,000,000 to AMD 1,000,001 gross, by about AMD 14,000: from AMD 713,200 to AMD 699,201.

Check the proposed gross salary against these thresholds when converting a take-home offer to gross pay.
A later salary reduction below AMD 200,001 does not by itself end the premium. Under phase 2 of universal health insurance, coverage extends to employees earning up to AMD 200,000 gross from 1 January 2027.
On 12 August 2026 Prime Minister Nikol Pashinyan proposed a split for that group, Armenpress reported:
- The Government would subsidise AMD 4,400 of the AMD 10,800 premium.
- Employees would pay AMD 2,000.
- Employers would pay the remaining AMD 4,400.
That funding split is a proposal, not law. Current UHI Law contains a separate continuity duty under Article 46(20): for December 2025 and 2026, tax-agent employers must pay AMD 4,800 for the specified Article 46(9)(1) employee group.
The duty applies when salary cannot cover the premium, including a no-salary month. The provision does not establish later recovery or reimbursement; do not assume who ultimately bears the amount.
Under Article 45, qualifying November 2025 salary brings coverage for December 2025 and subsequent months. January–November 2026 entrants start the following month. Premium calculation continues despite salary reductions during the following 12 months.
Employers may also fund premiums in full or in part under labour legislation. HO-135-N, effective 8 May 2026, broadened the option: the original law already allowed funding through collective agreements.
Reduced 10% rate and high-tech support
Income tax on salary is 10% instead of 20% for staff in occupations on the Government's high-technology list who do qualifying research and experimental development and have a positive opinion of the professional commission.
Foreign citizens without residence status and stateless persons are excluded.
Whether a software role qualifies depends on that Government list; none qualifies automatically.
Under Law HO-498-N, businesses may apply for new-employee support equal to 60% of the income tax calculated on that employee's salary, for three years from the hiring month. The business receives this support.
For employees using the 10% R&D rate, the support calculation instead uses a base equivalent to 20% of salary.
Only businesses in listed activities qualify. A new employee is one hired after 31 December 2024 who had not worked for a high-tech employer in the four years before the hiring year.
HO-221-N, in force from 30 May 2026, restricts the support to staff on an employment contract or individual hiring act, so pay under a civil-law contract is outside it.
Branches and representative offices of foreign entities registered in Armenia may apply.
Payroll calendar
| Deadline | What | Source |
|---|---|---|
| End of the day before work starts (14:00 on the hiring day for a same-day start) | Register where required; foreigners without residence status and stateless persons are excluded | Tax Code |
| By the 15th of the following month | Pay salary, in Armenian currency | Labour Code |
| By the 20th of the following month | File the income tax and social calculation report; pay the health premium | Tax Code; SRC |
| Each day overdue | Fine of 0.075% a day on late tax, for up to 730 days | Tax Code |
Working time and overtime
Normal working time in Armenia is up to 40 hours a week and 8 hours a day, under the Labour Code.
| Normal working time | Up to 40 hours a week and 8 hours a day | Labour Code |
| Maximum with overtime | 12 hours a day and 48 hours a week | Labour Code |
| Overtime pay | At least 50% on top of the hourly rate | Labour Code |
| Night work pay | At least 30% on top of the hourly rate | Labour Code |
| Overtime limits | Written consent of the employee, up to 180 hours a year and 4 hours over two successive days, outside exceptional cases | Labour Code |
| Work on rest days and non-working holidays not in the schedule | At least double the hourly or daily rate, or another paid rest day within a month, or the day added to annual leave | Labour Code |
Leave, sick pay and parental leave
Minimum annual leave is 20 working days on a five-day week and 24 working days on a six-day week, under the Labour Code.
The employer funds specific sick-pay and childcare-pension duties. The state funds the allowances shown below; maternity-benefit reimbursement remains unestablished here.
| Type | Entitlement | Who pays |
|---|---|---|
| Sick leave | No benefit on the first day; 80% of the calculated average wage from the second day; up to 120 days, 240 for tuberculosis | Employer pays the five working days after the unpaid first day; the State Budget pays the rest |
| Maternity | 140 days (70 + 70); 155 days after a hard delivery; 180 days for multiple births | The employer calculates and pays the benefit for an employed woman |
| Childcare | Leave to care for a child under three, on request; state allowance AMD 31,600 monthly for a child under two (AMD 63,200 for rural residents on leave); one-off birth benefit AMD 500,000 | State pays allowance and birth benefit; employer pays AMD 3,000 pension monthly from the month after leave starts until the child reaches two |
The employer funds the five working sick days after the unpaid first day and AMD 3,000 monthly pension from the month after childcare leave starts until the child reaches two.
The employer calculates and pays maternity benefit; later State Budget reimbursement is not established here. Health-premium continuity can also require an employer payment, as the tax section explains.
Public holidays
Armenia has 13 non-working days a year, set by the Law on Holidays and Memorial Days.
| Date | Holiday |
|---|---|
| 31 December – 2 January and 6 January | New Year and Christmas/Epiphany (four days together) |
| 27 January | Memorial Day of those who fell in defence of the homeland |
| 28 January | Army Day |
| 8 March | International Women's Day |
| 24 April | Armenian Genocide Remembrance Day |
| 1 May | Labour Day |
| 9 May | Victory and Peace Day |
| 28 May | Republic Day |
| 5 July | Constitution Day |
| 21 September | Independence Day |
The 27 January holiday is new: Parliament adopted the bill on 20 January 2026 and the President signed it into law. The Government may also declare additional non-working days for events of exceptional importance.
Termination: notice and payments
You may end an open-ended contract only on the closed list of grounds in Article 113 of the Labour Code. Notice runs 14 days – 2 months, depending on the ground and the employee's tenure.
| Ground | Notice | Payment |
|---|---|---|
| Employee resigns | 30 days; 5 days where the employer breaches the contract or the law, or for illness | None stated |
| Liquidation or redundancy | Two months, in writing | One average monthly salary |
| Unsuitability or long-term incapacity | 14 days up to 1 year of service; 35 days up to 5 years; 42 days for 5–10 years; 49 days for 10–15 years; 60 days over 15 years | 10, 25, 30, 35 or 44 times the average daily salary, by the same tenure bands |
| During probation | 3 days, in writing, either side | None stated |

Unsuitability notice increases with tenure; resignation notice stays at 30 days.
Reinstating a predecessor also triggers the payment of one average monthly salary. A contract or written agreement may provide more.
Notice and severance are two separate costs:
Under the Code, severance pay is required on top of notice, not in lieu of it.
— Shushan Stepanyan, author of the Armenia chapter, Concern Dialog (Chambers Employment 2026, Armenia)
Mass dismissal and unlawful dismissal
If you plan to dismiss more than 10% of staff and at least 10 employees within two months, you must notify the employment authority and the employees' representative at least two months before the contracts end.
A court that finds a dismissal unlawful can award, instead of reinstatement, compensation of one to twelve average monthly salaries, on top of pay for forced idleness.
Where the dismissed employee takes a new job while the case runs, Law HO-364-N caps the idleness pay at the last nine months' salary, from 24 November 2024.
Recent changes
Health-premium calculation begins with qualifying December 2025 salary. Further hiring and contract changes take effect through 1 July 2027:
- 1 July 2027: digital contracts generally become mandatory (HO-39-N, HO-40-N), with paper exceptions for people abroad and specified foreigners, refugees and asylum seekers in Armenia. Existing contracts must be uploaded by 30 June 2028.
- 1 January 2027: phase 2 of universal health insurance extends to employees earning up to AMD 200,000 gross and eligible civil-law contractors. The contractors page covers contractor-specific eligibility.
- Not later than 1 November 2026: residence fees rise to AMD 150,000 for temporary and AMD 250,000 for permanent residence, under HO-215-N. The date is the tenth day after the platform launch is announced.
- 1 November 2026: the Law on Foreigners (HO-11-N) takes effect, with the quota and the abolished exemptions; the employment-permit and work-visa parts follow once the new e-visa system starts.
- 30 May 2026: the state-support law for high-tech staff (HO-221-N) takes effect and limits support to staff on employment contracts.
- 8 May 2026: HO-135-N broadens the existing full/partial employer-premium funding option beyond the original express collective-agreement wording. It does not introduce a general mandatory employer share.
- 20 January 2026: Parliament adopts the bill that makes 27 January a non-working day.
- 1 January 2026: stamp duty on employees is AMD 1,000 up to AMD 1,000,000 of salary and AMD 15,000 above.
- December 2025 salary: health-premium calculation starts for the qualifying November 2025 salary group under HO-459-N, payable by the 20th of the following month. Later 2026 entrants start coverage in the following month.
Announced, not law:
- An employee health insurance scheme for pay up to AMD 200,000, floated on 12 August 2026 with an AMD 4,400 employer, AMD 2,000 employee and AMD 4,400 state split.
What a mistake costs and who pays
The employer bears the penalty for an undocumented or late-registered hire.
| Party | Risk | Amount |
|---|---|---|
| Employer | Worker not documented in writing, or not registered with the tax authority in time | AMD 250,000 per worker, imposed when a tax inspection finds it |
| Employer | Late payment of tax, including withheld income tax | 0.075% of the unpaid amount for each day overdue, for up to 730 days |
| Employer | Unlawful dismissal | Instead of reinstatement, compensation of one to twelve average monthly salaries, plus pay for forced idleness |
| Employer | No written contract or individual hiring act | A court can recognise employment from the day work actually started |
| Foreign company | Permanent establishment not registered | The rules for non-residents without a permanent establishment apply instead |
| Company that treats an employee as a contractor | Labour law applies once a court establishes the employment relationship; see independent contractors | Labour-law obligations for the whole relationship |
The Tax Code sets the AMD 250,000 penalty and daily late-payment fine. Dismissal remedies and employment recognition for work without a written contract come from the Labour Code.
Questions people actually ask
What is the minimum wage in Armenia per month and per hour?
The minimum wage is AMD 75,000 a month, unchanged since 1 January 2023. Hourly-paid workers have minimum tariffs of AMD 450 on a 40-hour week, AMD 500 on 36 hours and AMD 750 up to 24 hours.
What is the average salary in Armenia?
The average monthly nominal wage was AMD 303,140 for 2025. For January–August 2026 it is AMD 312,486, with AMD 336,510 in the non-state sector and AMD 248,578 in the state sector. Both figures are preliminary.
What are the average IT salaries in Armenia?
Information and communication paid an average of AMD 1,010,668 in December 2025, against AMD 376,743 for the whole economy. It is one month across the whole sector, not a developer salary.
What does an employer pay on top of salary in Armenia?
Ordinary employer payroll tax is 0%. Budget salary plus statutory benefits and specific employer-funded duties: five sick days after the unpaid first day, applicable childcare pension and health-premium continuity. Maternity benefit is calculated and paid by the employer.
Can a foreign company hire in Armenia without a local entity?
Yes, through an employer of record or genuine independent contractors. Assess employment status and permanent-establishment exposure separately. Direct foreign-employer duties and whether provider staff count towards service-based permanent-establishment tests remain unsettled.
Can a US citizen or other foreigner work in Armenia?
Yes, subject to the applicable permit, residence or exemption rules. EAEU citizens need no work permit. Other foreigners should check their route, including the conditional 2026 transition explained above.
Is a 13th-month salary mandatory in Armenia?
No. According to Chambers Employment 2026, a 13th salary is optional in Armenia. Employers decide on bonuses and set them in the contract or internal acts.
How many days of leave and public holidays are there in Armenia?
Annual leave is 20 working days on a five-day week and 24 on a six-day week. There are 13 non-working public holidays, and normal working time is 40 hours a week.
Sources
- ARLIS. Tax Code of the Republic of Armenia, English text (Tax Code). Accessed 6 October 2026.
- ARLIS. Law on Minimum Monthly Salary (Minimum wage law). Accessed 6 October 2026.
- Armstat. Average monthly nominal wage, January–December 2025. Accessed 6 October 2026.
- Hartak. Business registration steps. Accessed 6 October 2026.
- ARLIS. Labour Code of the Republic of Armenia, current Armenian text. Accessed 6 October 2026.
- ARLIS. Labour Code of the Republic of Armenia, English translation. Accessed 6 October 2026.
- Armstat. Average monthly nominal wage, January–August 2026. Accessed 6 October 2026.
- Hartak. Employee registration, application No. 79. Accessed 6 October 2026.
- ARLIS. Labour Code of the Republic of Armenia, official English translation (Labour Code). Accessed 6 October 2026.
- EY Armenia. Amendments affecting electronic signing of employment contracts. Accessed 6 October 2026.
- ARLIS. Law HO-39-N on digital employment contracts. Accessed 6 October 2026.
- ARLIS. Law HO-40-N on digital employment contracts. Accessed 6 October 2026.
- ARLIS. Law on Funded Pensions, English translation (Law on Funded Pensions). Accessed 6 October 2026.
- State Revenue Committee (SRC). Information sheet on health premium and stamp duty withheld from salary. Accessed 6 October 2026.
- Migration Service of Armenia. Acquiring employment-based residence status. Accessed 6 October 2026.
- Hartak. Work permit service for hiring a foreign employee. Accessed 6 October 2026.
- ARLIS. Law on State Duty, current Armenian text. Accessed 6 October 2026.
- ARLIS. Law on Foreigners, HO-11-N. Accessed 6 October 2026.
- EY Armenia. Law Alert on amendments to the Law "On foreigners". Accessed 6 October 2026.
- ARLIS. Law HO-215-N on state duty for residence status. Accessed 6 October 2026.
- ARLIS. Law HO-501-N, minimum wage increase. Accessed 6 October 2026.
- PwC. Armenia, individual: other taxes. Accessed 6 October 2026.
- ARLIS. Minimum wage law, 2013. Accessed 6 October 2026.
- ARLIS. Minimum wage law, 2014. Accessed 6 October 2026.
- ARLIS. Minimum wage law, 2015. Accessed 6 October 2026.
- ARLIS. Minimum wage law, 2020. Accessed 6 October 2026.
- Armenpress. Report of 13 August 2026 on the minimum wage and health insurance. Accessed 6 October 2026.
- Chambers and Partners. Employment 2026: Armenia. Accessed 6 October 2026.
- ARLIS. Law on Universal Health Insurance, current Armenian text (UHI Law). Accessed 9 October 2026.
- ARLIS. Law on Compensation for Damages Caused to Life or Health of Military Servicepersons While Defending the Republic of Armenia, stamp fees. Accessed 6 October 2026.
- ARLIS. Law HO-135-N amending the Universal Health Insurance Law. Accessed 9 October 2026.
- Hartak. Temporary incapacity benefit. Accessed 6 October 2026.
- EY Armenia. Implementation of the universal health insurance system. Accessed 6 October 2026.
- Armenpress. Report of 12 August 2026 on health insurance in 2027. Accessed 6 October 2026.
- ARLIS. Original Universal Health Insurance Law HO-459-N, Article 14(9). Accessed 9 October 2026.
- ARLIS. Law on State Support to the High-Tech Sector, HO-498-N. Accessed 6 October 2026.
- ARLIS. Law HO-221-N amending the high-tech state support law. Accessed 6 October 2026.
- Hartak. Child benefits. Accessed 6 October 2026.
- ARLIS. Law on Holidays and Memorial Days. Accessed 6 October 2026.
- Armenpress. Report on the 27 January public holiday. Accessed 6 October 2026.
- Legal500. Labor Code updates in Armenia: forced downtime compensation and digital system for signing employment contracts. Accessed 6 October 2026.