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Hiring in Armenia

Mike Smirnov
AuthorMike SmirnovHead of International Growth
Anna Gvozdeva
EditorAnna GvozdevaHead of Content
Published October 9, 2026 Last updated October 15, 2026
Armenia Asia
Currency Armenian Dram (AMD)
Language Armenian
Capital Yerevan
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.

RouteLegal employerWhat you pay on top of salaryHow you end it
Your own entityYour Armenian company0% ordinary employer payroll tax; benefits and specific duties apply14 days – 2 months by ground; 30 days when the employee resigns
Employer of recordThe providerBenefits, applicable employer-funded duties and the provider's fee; the EOR page gives the cost structureThrough the provider as legal employer; the EOR page covers the terms
ContractorNone: the contractor is self-employed under a civil-law contractContract price; the contractor page covers tax treatmentUnder 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 wageAMD 75,000 / monthMinimum wage law
Average monthly nominal wage, 2025AMD 303,140 / monthArmstat
Average monthly nominal wage, January–August 2026AMD 312,486 / month (non-state sector AMD 336,510; state sector AMD 248,578)Armstat
Information and communication, December 2025AMD 1,010,668 against AMD 376,743 for the whole economy that monthArmstat

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.

StepWhat happensTakes
Choose and register the entityA 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 person1 business day with individual founders; 2 where a legal entity is among the founders and no standard forms are used
Open a bank accountCompany account for salary and tax paymentsNot published
Register each employee where requiredFile 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 excludedUp to 15 minutes; notice issued immediately
Pay the first salaryIn Armenian currency, cash or non-cashBy the 15th of the next month
File the tax and social reportMonthly income tax calculation report, which also covers social feesBy the 20th of the next month
TotalEntity registration, plus the bank account step, which is not published1 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.

Process: register company in 1–2 business days; written contract and hiring act; employee filing by prior-day end, or hiring-day 14:00 for a same-day start; salary by the 15th and tax report by the 20th of the following month.
Employee filing excludes foreigners without residence status and stateless persons. The registration service takes up to 15 minutes. Salary and tax-report dates fall in the month after the work month. Hartak: business registration steps · Armenia Labour Code (ARLIS, official translation) · Hartak: employee registration, application No. 79 · Tax Code of the Republic of Armenia (ARLIS)

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.

WhoWhat you needTime and fee
EAEU citizenNo work permit; online application to confirm lawful residenceNot published
Other foreigner requiring a permitMinistry of Labour consent through the online work permit system, then a residence cardConsent 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 ArmeniaPaper employment contract, outside the digital system, also after 1 July 2027Not published
Foreign hire: work abroad uses a paper contract; EAEU hires in Armenia need no permit and confirm residence online. Other foreigners must check exemptions; if a permit is required, consent takes up to 15 working days and the card 30 days from application.
Consent/card path applies only when a permit is required. Check exemption and transition rules first; timings are separate maxima. Card timing runs from application. EAEU hires confirm residence online. Hartak: work permit service · Migration service: employment-based residence · EY Armenia: electronic employment contracts · Law HO-11-N, foreigner-law transition (ARLIS)

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:

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 rateAMD 75,000 / monthMinimum wage law
Hourly tariff, 40-hour weekAMD 450Minimum wage law
Hourly tariff, up to 24 hours a weekAMD 750Minimum wage law
Hourly tariff, 36-hour weekAMD 500Minimum wage law
What the minimum excludesTaxes, social and other mandatory payments, bonuses, additional payments, awards and premiumsLabour Code
What the minimum setsThe ceiling of the pension contribution base: 15 times the minimum, AMD 1,125,000Law 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 2013AMD 45,000Minimum wage law, 2013
From 1 July 2014AMD 50,000Minimum wage law, 2014
From 1 July 2015AMD 55,000Minimum wage law, 2015
From 1 January 2020AMD 68,000Minimum wage law, 2020
From 1 January 2023AMD 75,000Minimum wage law
Line chart of Armenia's statutory minimum monthly wage: AMD 45,000 in 2013, 50,000 in 2014, 55,000 in 2015, 68,000 in 2020 and 75,000 from 2023, unchanged since.
Points mark the date each rate took effect (July 2013, July 2014, July 2015, January 2020, January 2023); years between points are not plotted. The AMD 75,000 rate has not changed since 1 January 2023. Minimum wage law, 2013 rate (ARLIS) · Minimum wage law, 2014 rate (ARLIS) · Minimum wage law, 2015 rate (ARLIS) · Minimum wage law, 2020 rate (ARLIS) · Law HO-501-N, minimum wage increase (ARLIS)

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

ItemAmountWho bears itSource
Income tax20% flat of gross salaryEmployee; you calculate, withhold and remitTax Code
Funded pension fee5% 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 1974Employee; you withholdLaw on Funded Pensions
Health premiumFor 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 overOrdinarily employee; you withhold. Specific continuity duty belowSRC; UHI Law
Stamp dutyAMD 1,000 for salary up to AMD 1,000,000; AMD 15,000 from AMD 1,000,001Employee; you withholdSRC
Pension amount during childcare leaveAMD 3,000 a month, from the month after leave starts until the child reaches twoEmployerLaw on Funded Pensions
First five sick daysBenefit for the five working days after the unpaid first dayEmployerHartak
Employer payroll tax0%No ordinary employer payroll-tax levyTax 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 itemsIncome taxPension feeStamp dutyHealth premiumEmployee's net
303,140303,14060,62815,1571,0004,800221,555
500,000500,000100,00025,0001,0004,800369,200
500,001500,001100,00025,0001,00010,800363,201
1,000,0001,000,000200,00075,0001,00010,800713,200
1,000,0011,000,001200,00075,00015,00010,800699,201
1,010,6681,010,668202,13476,06715,00010,800706,668
2,000,0002,000,000400,00087,50015,00010,8001,486,700

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.

Bar chart at gross monthly AMD 303,140, 500,000, 1,010,668 and 2,000,000 showing net pay and employee withholdings under 2026 rules for an employee already enrolled in health insurance. Salary arithmetic excludes employer-funded benefits and obligations.
Monthly AMD, 2026; adult employee born from 1 January 1974, already enrolled in health insurance. Includes income tax, pension, health premium and stamp duty. Excludes employer-funded sick pay and other obligations. Rounded to whole AMD. Tax Code of the Republic of Armenia (ARLIS) · Armenia funded pension law (ARLIS) · State Revenue Committee: health premium and stamp duty guidance · Universal Health Insurance Law, current provisions (ARLIS) · HO-135-N, employer premium-funding option (ARLIS) · Hartak: temporary incapacity benefits

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.
Bar chart for an already insured employee: net pay and withholdings at gross AMD 500,000 versus 500,001 and 1,000,000 versus 1,000,001; net falls from 369,200 to 363,201 and from 713,200 to 699,201 under 2026 rules.
Monthly AMD, 2026. Adult employee born on/after 1 January 1974, already enrolled beyond the first qualifying month; premium paid by employee. Health and stamp-duty steps reduce net at these gross thresholds. Rounded to whole AMD. Tax Code of the Republic of Armenia (ARLIS) · Armenia funded pension law (ARLIS) · State Revenue Committee: health premium and stamp duty guidance · Universal Health Insurance Law, enrolment provisions (ARLIS)

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

DeadlineWhatSource
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 excludedTax Code
By the 15th of the following monthPay salary, in Armenian currencyLabour Code
By the 20th of the following monthFile the income tax and social calculation report; pay the health premiumTax Code; SRC
Each day overdueFine of 0.075% a day on late tax, for up to 730 daysTax 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 timeUp to 40 hours a week and 8 hours a dayLabour Code
Maximum with overtime12 hours a day and 48 hours a weekLabour Code
Overtime payAt least 50% on top of the hourly rateLabour Code
Night work payAt least 30% on top of the hourly rateLabour Code
Overtime limitsWritten consent of the employee, up to 180 hours a year and 4 hours over two successive days, outside exceptional casesLabour Code
Work on rest days and non-working holidays not in the scheduleAt least double the hourly or daily rate, or another paid rest day within a month, or the day added to annual leaveLabour 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.

TypeEntitlementWho pays
Sick leaveNo benefit on the first day; 80% of the calculated average wage from the second day; up to 120 days, 240 for tuberculosisEmployer pays the five working days after the unpaid first day; the State Budget pays the rest
Maternity140 days (70 + 70); 155 days after a hard delivery; 180 days for multiple birthsThe employer calculates and pays the benefit for an employed woman
ChildcareLeave 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 500,000State 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.

DateHoliday
31 December – 2 January and 6 JanuaryNew Year and Christmas/Epiphany (four days together)
27 JanuaryMemorial Day of those who fell in defence of the homeland
28 JanuaryArmy Day
8 MarchInternational Women's Day
24 AprilArmenian Genocide Remembrance Day
1 MayLabour Day
9 MayVictory and Peace Day
28 MayRepublic Day
5 JulyConstitution Day
21 SeptemberIndependence 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.

GroundNoticePayment
Employee resigns30 days; 5 days where the employer breaches the contract or the law, or for illnessNone stated
Liquidation or redundancyTwo months, in writingOne average monthly salary
Unsuitability or long-term incapacity14 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 years10, 25, 30, 35 or 44 times the average daily salary, by the same tenure bands
During probation3 days, in writing, either sideNone stated
Bar chart of notice in days: employer dismissing for unsuitability or long incapacity gives 14 days under 1 year, 35 up to 5 years, 42 for 5-10, 49 for 10-15, 60 over 15; an employee resigning gives 30 days.
Calendar days of written notice under the Labour Code. Redundancy or liquidation notice is two months for any tenure and is not plotted. Armenia Labour Code (ARLIS, official translation)

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.

PartyRiskAmount
EmployerWorker not documented in writing, or not registered with the tax authority in timeAMD 250,000 per worker, imposed when a tax inspection finds it
EmployerLate payment of tax, including withheld income tax0.075% of the unpaid amount for each day overdue, for up to 730 days
EmployerUnlawful dismissalInstead of reinstatement, compensation of one to twelve average monthly salaries, plus pay for forced idleness
EmployerNo written contract or individual hiring actA court can recognise employment from the day work actually started
Foreign companyPermanent establishment not registeredThe rules for non-residents without a permanent establishment apply instead
Company that treats an employee as a contractorLabour law applies once a court establishes the employment relationship; see independent contractorsLabour-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.

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